House Update

If you’ve followed my blog for any length of time, you’ll know that we were initially saving like mad to buy a new home… then, we fell in love with a spacious new build that had gardens for days and crucially, no noisy neighbours!

We moved in 2 years ago and because of affordability checks, the bank decided our payments were suddenly “unaffordable”… you know, the payments we’d been making without any fuss for 7 years at that point. So, they upped our mortgage term to 30 years to compensate (ick) and I’ve been irritated by it ever since.

I thoroughly enjoy seeing our mortgage value tick down and the slow pace of this was driving me mad. To compensate, we’ve spent the last two years (until one of our mortgage “pots” was out of deal) saving as much as we could to make a one-off payment when it became financially sensible

Well, last week we paid off 4% of our mortgage in one lump sum!!

And wow did it make a difference when we went in to renegotiate our mortgage deal. This extra dropped our LTV to around 64% and opened up some fab new deals.

In short, we upped our monthly payments by £40 per month on a 5 year fixed deal, and have shortened our term by a whopping 11 years. This brings us inline within a year of how many years we’d have had left if we had never moved. Oh, and did I mention…. we saved £60,000 in interest payments! Bloody delighted.

So, because I’ll never be happy while I owe the bank money, we are planning on taking a break from intensely house saving until 2021, but getting right back into it so we can pay off another lump sum come 2025.

Things I’m going to do in 2021 with my additional income…

  • Take the kids to Lanzarote (£500 left to pay on that)
  • Save to extend our paving in the garden and have a gorgeous outdoor area by the time the kids finish for the summer holidays.
  • Save spending money for my trip to visit a friend in North Carolina.
  • Decorate Kids bedroom and living room and repaint kitchen.

We will still be saving for a new (to us) car and saving our emergency fund back up, but for now, we’re enjoying a short rest from being so intense.


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