SmlSaving's go a long way!

SmlSave · 11 October 2019 at 1:07PM

Hello, hello

I need somewhere to muse on random thoughts and to keep focus on my savings and overall aim to become mortgage neutral.

I currently have a loose plan to save as much as I can over the next 4.5 years to when my current fix of 1.89% ends to change to an offset mortgage.

This is hand in hand with trying to invest for my future, to enjoy life and to try and get a bit more organised with life in general.

Nice to meet you all :coffee:

Jelllibeanz · 11 October 2019 at 1:17PM

Good luck with your journey

fruitloop04 · 11 October 2019 at 7:56PM

Happy new diary! I agree that this journey should include enjoying life!!

SmlSave · 11 October 2019 at 8:32PM

Thanks Jellie & Fruit

Nice to meet you.

I was searching through the saving rates available at the moment - they all look pretty dismal. :eek: I've already used Nationwide's 5% and hubby's is coming to an end in January.

I am wondering whether TSB's 1.5% on £1500 is worthwhile (we'd open three) but I'm not sure whether the hassle of bouncing £500 around each month is worth it - I'd probably mess up the timings!

The first part of me says just to overpay every penny as the interest on the mortgage is more than we'd ever earn in savings.

The second part says to save, save, save so that funds are accessible should SHTF or the car just goes kaput. Money does generally give you more options than not!

And the third bit of me says to invest, it's possible to grow money much quicker!

Sometimes I feel like I'm on a hamster wheel with these thoughts running round!

Hence my need for a plan :beer:

killerpeaty · 11 October 2019 at 9:54PM

You don't need to commit to just one option. You can spilt your wealth growing into all the different pots.

Have you looked into investing? If you want to pay off a lump sum off your mortgage, investing probably isn't the way to go. But investing can be very easy and much more accessible than people think.

Whatever path you decide on, I wish you the best of luck and I'll keep my eye out for your progress.

newgirly · 11 October 2019 at 10:49PM

Hi smlsave, long time no see, welcome back

CathT · 12 October 2019 at 6:33AM

I recognise your username too. Good luck with this part of your journey and welcome back to this forum.

SmlSave · 12 October 2019 at 10:31PM

Hi NewG and Cath

Yes I'm back!

Thanks KillerP, I am currently investing £100p/m into my S&S ISA and have a LISA too, I'm just feeling very risk adverse atm.

I have had a very good day baking today. There's been a batch of chocolate cookies baked, 8 naan breads, a large loaf and dinner was a proper affair with beef stew, dumplings with all the trimmings plus yorkshire puds (frozen I'm afraid, I've yet to master them) then DD requested Angel Delight for pudding which went down a storm.

As food waste is a crime in this household all shall be eaten and I'm quite happy making the spoonful of stew, four potatoes and veg my lunch on Monday while DH has the leftover spag bol from last night.

I made a little OP of £23.60 to the mortgage today as my bank account was looking fairly healthy, do you still call them tilly tidies when you round down your account to OP?

killerpeaty · 12 October 2019 at 11:04PM

Your cooking sounds amazing. I'm genuinely craving angel delight now ha.

Well done on your OP. (I hope it's still called tilly tidies)

SmlSave · 13 October 2019 at 9:27PM

I figured I should jot down where we are now to record how we progress

The house market is still buoyant (which I find surprising with all the uncertainty atm but can't complain as conveyancing is bread 'n' butter to the firm I work for) and zoopla reckons our house is worth £247,000 so being realistic....

House value: £230,000

Mortgage value: £103,500

Meaning a LTV of 55% which certainly means a happy dance :j:T:j and we're currently on a repayment fix of 1.89% until 2024, allowed to overpay 10% a year.

No overpaying and we'll owe about £75,000 in 2024 with ten years left to run and I'll be mortgage fee at 50 if interest rates stay stable.

But that's the kicker isn't it? When we bought our first home our interest rate was 6% and I'm certainly not complaining about 1.89%! But there's a risk that interest rates could rise/house prices could crash and I want to be in the best position possible no matter what happens.

P.S. Angel Delight is one of those things that you forget is lovely KillerP and then overindulge :rotfl:

becky170 · 14 October 2019 at 6:28AM

Hi Smlsave! I'm looking forward to hearing all about your musings. We decided to have a healthy emergency fund incase SHTF and am now putting our extra cash towards overpaying. I've started paying small amounts into a S&S ISA but like you I'm risk averse so don't want to put huge sums into it currently whilst I still have a big mortgage.

I think I might have to add some angel delight to the shopping list for half term now! You definitely forget how good it is

SmlSaving's go a long way!

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