Mortgage Overpayments, Take 1001

So, the title is an exageration! I have played with overpayments many times since getting a mortgage for the first time in June 2011, but I wouldn’t hit the 100’s let alone 1000’s really…

After my last post, I was inspired to talk with the husband about re-starting the overpayments on the mortgage. We stopped as we bought a car on finance- good apr though- and we have been doing things to the house- had a patio outside the back and have saved for the driveway to be done at the front- and now, even though we have some holibobs coming up, I have noticed we should be able to spend an extra £250.28 a month on the mortgage without it having a huge impact on other things.

Bearing this in mind, I have today, increased our payments by £250.28! Taking us to £917 a month in payments, I can stop these at any time should I need to and even if I only manage to overpay a month it will still save a good amount ultimately!

So, with the overpayment we should be able to pay the mortgage of in 17 years- this still feels too long right now- I will be 48 and hubby will be 49. This is great progress really, but the problem with overpaying and looking into mortgages, is that it opens your eyes to the real cost of a mortgage,the interest is truely shocking!

I am looking forward to seeing what my wage will be in May, I have started a new job and this is 36hours a week so less unstable than working agency, plus I get paid my holidays! Hooray!

Looking forward to seeing the mortgage on May 1st….

Overpaying the Mortgage

Today I am playing with the Overpayment (OP) calculator on Money Saving Expert- I love doing this, its amazing how even a tiny OP can make a huge difference to the mortgage!

We currently pay £666.72- I like the 666 number, shame the pennies weren’t 00!

If I were to increase our monthly OPs by £333.28, for example, taking us to £1000 a month, we would save £19,964 in interest over the term of the mortgage, and we would pay the mortgage off 10years and three months earlier. Thats amazing! It would also be a lot of money extra to find to throw at the mortgage…

Even rounding the amount up to £700 a month- £3.28- would see us save £337 in interest and we would pay the mortgage off two months early, this would still be fantastic in the long run! Every penny really does count, and this is based on our fixed rate and the current base rate so this would fluctuate.

I *think* that we might be able to afford to OP 250.28 a month- the 28p is to round it to a whole number, sad I know! Hubby may not agree with this though!Haha. If we were to OP that amount, it would save us £16,742 in interest and we would knock 8 years and 7 months off the mortgage.

Playing with the calculator is addictive, I totally recommend anyone who is considering overpaying has a look at this, it really shows that every penny/pound counts when paying down the mortgage.

My aim is too have a good discussion with hubby and see if he agrees we could start OP the mortgage again, as we used to!

Below is the links to the basic mortgage calculator and the overpayment calculator:

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

Groupon, Wowcher etc

I have gotten some great deals using Groupon and Wowcher- I am sure there are other similar sites as well but these are the two I have used! If I want to go for afternoon tea, a Spa day or a day out locally, I will always check on these sites for any deals. This has definately lead to some great savings on something I would have done anyway. Most recently I got a great deal on a local festival I planned on going to, I got the VIP tickets for the same price as the normal entry fee, this got me lots of free items including rum and cake- perfect!

Though, not all deals are as good as they look- for items, furniture etc, they can be found for the same price or cheaper online on sites such as Amazon, so it is always worth shopping around before you buy.

I have used groupon for Las Vegas- I signed up with the hotel address of where we were staying. I got buy one get one free on yard length margaritas and unlimited alcoholic drinks on the Linq Hotel’s big wheel, the High Roller for a bargain cost for three people! So it often seems that local bargains, even abroad can be found.

I tried when we went to Paris, but it was in French- unsuprisingly really- so I wasn’t able to understand it at all!

We are off to New York next year, and one of the places we want to stay is often on Groupon so I will be doing the same again closer to the time!

These type of sites are also a great way to discover what awesome and interesting things are in an area, I learnt new things about where I live by looking through the deals, some great finds to be had- but be sensible, you dont save by buying something you dont want, or if you dont check that you are getting the best price!

Some ways I have been working towards Mortgage Freedom and things I have noticed!

Just a reminder, I am a Nurse, and in no way should what I say/do be taken as proper advice, I am merely sharing my novice ways of heading towards mortgage freedom! Any financial choices should not be based on my ramblings!

Always look at debts as a whole- if you have expensive debts, the advice would be to pay these off first. For us, the most expensive debt we have is the mortgage. We do have a loan, which is 4%, but this has set interest and we will pay the same amount regardless of how soon we pay it off! The mortgage is at 2.99% and our credit cards are all 0%- we TART our cards to ensure we dont pay any interest on them. This has been working well for us, we currently have a 0% spends card and a 0% balance transfers card. We make note of when these run out to ensure that we don’t get charged interest!

Martin Lewis from MSE (Money Saving Expert), points out that if you can get more from savings than OP (Over Paying) the mortgage, then that would make sense. For some people being MF (Mortgage Free) is the overriding desire- but bear this in mind, your money may work better in other ways. We are saving in a 1.5% current account and have a 5% savings account, there is a cap on this for £250 a month and we can’t touch this for a year to get the interest. As it stands, the mortgage rate is now much better for us, our first mortgage was over 5%! So some savings accounts are better than OP now.

OP my morgage helped when remortgaging, for example, I was able to get a better rate once I hit 10% comparative to 5%LTV. This is the same with other key LTV points, namely 90%, 75% and 60%, though when we most recently remortgaged and hit 80% and this made a big difference to us!

We are only able to OP 10% of our mortgage a year this has always been the case- there isn’t any chance we will reach 10% in a year currently. But as the mortgage decreases, 10% wont be as much, so maybe one day this could be an issue! For our first mortgage, we kept the term as long as possible as it was more affordable, then chucked OPs at the mortgage on top of this. Meaning the outcome is similar to a reduction in years, but we had flexibility with regards to our standard monthly payment being affordable. For our latest remortgage, we could afford the payments over 26years, shaving years off the mortgage. We then plan to OP on top of this when possible.

We have had a great mortgage advisor. I look on Money Saving Expert as well to see the kind of costs we would be looking at, and she always gets us a great deal. Having an expert you can trust is definately helpful, she was very impressed at how much we had taken off the mortgage! The second time we remortgaged, we did it by ourselves with the same bank- the deal was fine and incured no fees. When we were looking at remortgaging with another bank and a different term, I let Fiona lead the way!

When we first got our big mortgage, paying it down was the most important thing. I knew in the long run we would thank ourselves for two years of frugality in other areas when we could remortgage and the house would be a lot more affordable. Now, in theory, we can afford the house and bills with one wage, which is reassuring! I have been reading about mortgage neutrality recently, but we have other things to save for and do now, so OP the mortgage when we can fits better these days!

Remember, with OP, every penny/pound counts! For every pound borrowed we pay £1.51 back therefore everytime you pay off an extra £1, you save 51p in the future! That’s a motivating thought! A diary on MSE introduced me to Tilly Tidies- namely someone called Tilly, started to skim down their accounts. Rounding down to a whole number, what was skimmed was then OP or sent to a savings account to build up to be OPayed! This is something I am doing now as I have to save £1000 before I can send an OP, I am also considering setting up a regular overpayment again… get itchy not seeing any extra change to the mortgage!

WARNING- Mortgage overpayments can be seriously addictive and cause others in your lifes eyes to glaze over! Find other like minded folk to share with 🙂

Hobbies

I think it is really important to have hobbies, they can come in many different forms and at a variety of different costs. Some hobbies can be pretty much free. I say pretty much free, as, if you think of walking, you still need shoes and clothes that are appropriate. Most people already own these so, therefore, walking is pretty much free. You could also spend a lot of money on walking should you wish!

My hobbies are pretty sedentary overall, I love reading! Libraries are great for this- though our local one shut down a few years ago, so not as convenient for me- book shares in work places, with friends and family are cost effective and also looking out for bargains in charity shops and online. I have had some great deals on my kindle via amazon, I made use of the free month borrowing scheme and read a bucketful of books all in one series and it was great! Just remember to cancel again after!

I love watching TV and films as well, we got rid of Sky a few years ago and now use Amazon Prime- great for deliveries, Alexa and music, though hubby pays extra for even more music, not just watching stuff! We also use Netflix, this has been great recently and I have been very pleasantly surprised by some of their own creations! I like to read blogs, pretty much free, I already have a laptop, desktop and smartphone. I play the Sims, not free, but given the amount of hours I spend on it, well worth the cost!

Mr Money Mustache talks about cost versus use as a way to look at spending money. If you buy some fantastic walking shoes, for £100, you could work out the cost per mile. So therefore, the more miles you walk the more cost effective the purchase is. I definately get my moneys worth from Netflix and Amazon, not so sure about my TV license for BBC though!

Hobbies are great for our mental health, they keep our brains occupied and they can give us purpose. They come in many forms, hubby did archery for a while, got really into it and bought lots of equipment. He still has a play around every now and then, so I think it was worth the inital outlay. He has a new hobby at the moment, with my encouragement, he bought an imported Americal Ford F100 1974 truck, all the way from California! It is AMAZING!!!! This hobby cost £4900 to buy, but I believe that this is actually a steal for this vehicle. I choose to look at this as an investment as well as a hobby. If looked after and fixed up- as hubby is doing- then this vehicle will only increase in value. Smashing!

Betty, the truck, is currently at a local garage- how random in this semi rural area, that we have a classic car specialist garage fifteen mins away! Where she is being looked after, she actually broke down on the garage driveway, and the guy has said to hubby he is impressed she made it that far. We trust the garage, they are very clear and upfront about everything, telling us what is imperitive to be done, what hubby could have a go at and what can wait. They also have loads of cool cars up there, I got to have a nosy the other day.

I am in love with her colour!

Some of my family, and one of my best friends are horse people, now, horses are expensive hobby. Very fulfilling though I am told! I also love researching the crap out of things, holidays are my biggest obsession! Pinterest is a wonderful place to while away hours of your day, getting inspired and obsessed!

I would love to hear about any hobbies readers have, how do you balance costs etc?

Super King Size Bed!

Something that I find difficult, is the desire of wants versus needs. I wanted a King Size bed, mostly because we allow our dogs up on the bed and more space would be wonderful! This was not a need, and when looking at costs, it was starting to look like a big expensive when we had a perfectly usable double bed.

So i started looking on Facebook and Ebay. Sure enough, just 20 minutes down the road we found someone selling, not a King Size bed, but Super King Size for £50! It was a bargain that we couldnt turn down!

We went to collect it in a borrowed van- no cost. It was in great nick so we payed the £50 and came home.

We payed £12 to buy paint, then I started painting the bed and hubby finished it. We found two sheets for £11.99 each at the Range, already had a King Size duvet which fits great so no extra cost and the biggest expense was finding a mattress! We trawled around lots of stores, it got tedious and I couldnt believe the cost of mattresses! In the end, we found the perfect mattress in Carpet Right of all places, £350 including free delivery!

The bed is amazing, so much space! I love, love, love it! The paint was just to freshen it up a little and help it fit in our room, it wasnt necessary but looks great! Looking round for second hand items is so underrated, we could easily have spent double what we did buying everything new and not as good quality!

Costs:

  • Bed frame £50
  • Mattress £350
  • Paint £12
  • Sheets £23.98
  • Van borrowed so no cost

Overall cost: £435.98

Chickens

In June 2018 we adopted 4 chickens through the British Hen Welfare Trust, they are just amazing! As they are mini dinosaurs- velociraptors- we named them Blue, Charlie, Delta and Echo, from Jurassic Park World.

They all have their own characters, they run over to you when they are free ranging it in the garden. I understand this is for food, but I like to pretend that its because they love me! They fight off crows if needed and when Lady tries to pounce on their run- she is a little unsure still- they just peck her on the nose!

I researched a lot about the best homes, most practical homes and runs etc. I wanted to make sure that the Chickens wouldn’t become a time burden as we work full time and have the dogs as well. This led me to Omlet, they do plastic hen houses, this seemed practical as they won’t rot in the rainy welsh weather and they will be very easy to clean. The biggest barrier was cost, these are not cheap by any standard!

This led me to trawling ebay looking for a great deal, which was close enough to collect. I actually found the Omlet cube with a 1×3 metre run, and then a 2×2 metre walk in run, for £550 all in, which was an hour away. Expensive- yes, but not comparative to these items new! Another appeal is the fox proof claim, which I have seen videos demonstrating, but also both hubby and I actually like the look of the Omlet setup. Modern and nice, it is also green so blends a little more.

We created a swing, a box which we filled with extra soil for the art of mud bathing, and we got all the Omlet accessories for food and drinks from the folks selling the house and run we bought. I read up a little about chicken enrichment and hung up old CDs, the mud bath box was made from scrap wood we had as was the swing- which they have never used! I also chucked some plastic balls we used for a dog ball pit, just in case!

Initially we were too scared to let the girls have free range time, there are foxes in this area, I have enjoyed watching them! But after discussions, and the run starting to get muddy, we decided that we would do our best to keep them safe, but if the worst happened, I think they would have been happier to have that time out. They are hilarious, I love watching them run around, chasing bugs and scritching around. It has also meant we are paying less for food- which doesnt seem drastically expensive to us anyway- as they are getting a lot of sustanence from the land instead.

The girls came to us looking rough, with feathers missing, as they had been caged for the 18months they had lived so far. Now they look incredible, big fluffy, feathery girls! They are all individuals and funny, watching chickens is great! We donated £5 per chicken, absolute bargain! We get lots of eggs, its winter and we get at least two a day, but mostly, we just wanted to stop these beautiful birds from getting killed just because they are passed ‘optimum’ laying age.

If you are considering getting chickens, stop thinking and do it! We clean out the house once a week- the cube has pull out trays which collect all the poop so this is a five minute job. Water gets topped up once a week and refreshed once a week, grit and food topped up once a week- this all takes less than 20minutes! We have decided we will jet wash the whole thing in Spring this year, it doesn’t need it yet though and as it is plastic this will be very easy and quick!

We bought tarps to cover the top of the runs- one from Aldi has worked really well on the smaller run, but the other two tarps ripped off the walk in run, so we bought three Omlet tarps- so far they have weathered two Welsh storms, so at £90 not cheap but hopefully they will last a very long time. We also extended the run, that was £100, but again, I think it is money well spent! Another thing we spent £150 on, because I am lazy and it makes life easier, is an automatic door opener, it is the best thing ever! The girls are locked away safe when we get home and its dark, plus it means no early mornings on the weekends! Bonus!

I guess one thing about Chickens, is that they can be as expensive or cheap as you like, they are happy with minimum contact or lots of contact, perfect pets! Hubby wasn’t totally sure about chickens, but agreed as I was keen and he likes rescuing animals, he is totally smitten with them now!