The Plan

We are planning to overpay our mortgage by £4000 this year by allocating £350 each month to it for the first ten months. Towards the end of the year we have a lot of car expenses, as well as Christmas to pay for, so we probably won’t contribute anything extra to the mortgage in November or December. Due to our bank’s rules about overpayments, we need to make payments of at least £500 at a time, so although we are putting away £350 a month, in practice we will actually be paying £700 every two months.

Blooming bills!

This quarter has seen some financial challenges, with ongoing plumbing hassles. We had some pipework replaced at a cost of £350, which is about one month’s overpayment amount. We had hoped that would be the end of the plumbing saga, but our boiler is still losing pressure every day and may need replacing. That will make this month’s £350 bill seem tiny in comparison! So far we have kept up our usual overpayment amounts and let the emergency fund take the hit. We will build this back up gradually for now, but if it turns out we need a new boiler then it is likely we will put overpayments on hold for a while, as we don’t want our emergency fund getting depleted too much.

Free cash

One, relatively small, positive this month was the receipt of £96 from TopCashback, a site that gives you cash back if you buy goods and services through their site. I decided to put £50 of this into my ISA, and added the other £46 to the mortgage pot, hence the weird amount paid off this quarter.

The Numbers

So here are the numbers for this year:

OPs made this quarter: £746

Total OPs made in 2018: £2146

Updated balance: £70344.11 (June 30th 2018)

Daily interest: £4.89

Mortgage term due to end: May 2039 (20 years 10 months)

I’m really glad to have the daily interest go under £5. That feels like such a small amount now, so our monthly payments are chipping away at the capital more quickly. Ahh, compounding in action. It’s also great to see that we reduced the term by 4 months this quarter. Onwards and downwards!