QB Wolf's long and winding road

A question about : QB Wolf's long and winding road

Hello, I've spent a lot of this week trying to sort out my finances, cancelling un-needed things, sorting out utilities etc, managed to shave Ј800 off my debts in a month, credit card balance cleared!! Now I've started to think about my mortgage - details in my signature.

I've decided on small targets and not to worry too much about the big scary number, so I will get it down to Ј180K by Christmas. Once I get there I'll think about a realistic target for the next 6 months. I'll need to pay some biggish chunks -but I do have some savings so we'll see.

I've just had a promotion at work, so have a bit more cash coming in, so have set up a standing order to overpay Ј100 a month; this will save me Ј16,444 in interest and pay it off in full 3 years and 5 months earlier, it's a small start but it feels good!!!

A bit about me I'm 37, married with two kids, a boy who is nearly three and a daughter who is 12 days old!! - So Mrs QBW is working in a different sense for a bit.

Best answers:

• Hi QB Wolf,
  Congratulations on birth of baby QBW And on your promotion. It sounds like you are having a good time recently!
  Also well done on paying off debts and credit cards. I would pay off all my debts before overpaying the mortgage.
  We have just started to overpay our mortgage and also only overpay Ј100 a month which I think is a good start. Every little helps!
  Have you checked with your mortgage provider that they don't charge you for overpayments?
  Good luck with your MFW journey!
  Bargainlover08
• Hmm good call on the overpayment charge, I'm not on a deal just on SVR so think I'll be OK, will call later just to check.
• Good luck on your journey to become Mortgage Free .
• Have read a lot of inspirational stuff on here - just can't wait for pay day to make my first overpayment and to see what my new salary is and to start planning to make this millstone smaller.
• Just found a more complex calculator, that allows me to insert yearly lump sums. In summary, to pay off in ten years, I need to overpay 400 a month and put a 10,000 (my annual bonus + dividends) yearly lump sum.
  Frightening, but possibly do-able.
• Hi QB Wolf,
  There's lots of calculators available, eg search for locoblade on these MSE forums, or do an internet search, but I crafted my own. See posts 534 and 536 of my diary. They are linked to from the first post:
  https://forums.moneysavingexpert.com/...d.php?t=572849
  Allows different standard and overpayments, mortgage rates etc. May be worth a look, even if it only helps you understand your mortgage a bit better.
  Don't recall you mentioning your mortgage rate yet - if it's a very low SVR - mine is 2.5% - it may be better to save rather than overpay and review as the rates change.
  Financial Bliss.
• Hi the SVR is 4%, because of my high LTV kind of stuck with it for now, will be looking at other deals as the LTV lowers.
  I am saving a little as well though.
• Just found an old account that had 48.65 in it and paid it into my mortgage -my first OP, not shortened the mortgage, but saved Ј78 in interest ha ha ha!
• Just checked my current account and I have Ј45 to last me 15 days. NSDs are going to be enforced - hurry up pay day!!
• Hi QBQ, it does get strangely addictive but in a very good way. Good luck, Tilly x
• My amazing 48.65 didn't go in, rang my bank I'd used the wrong sort code and A/C no, got the right one so need to try again and change my standing order, my OH gave me Ј90 she owes me, so 45 OP, 45 buffer into CA. Mind you 3 NSDs in a row today!!
• A week and a half into my new job and not really enjoying it, another 8 days to go til pay day and I feel guilty for wishing my life away.
  Must be positive - at least the account for the house I rent out, is back in the black, after the house was empty for 3 months - finally got tenants
• Hi QB.
  Glad you got more tenants in. I like your plan on focusing on the smaller goals- baby steps as they say! I do find it overwhelming looking at our overall figures.
• CC bill only Ј250, so not too bad, another NSD - 4 days in a row. 6 days til pay day!!!!
• Well done on the NSDs. I think I'll start back on the NSD challenge next month.
• It's quite easy for me, I just go to work without any means of paying for anything
• The thought of that scares me!! I'm considering going cash only but I'd always have to have some with me 'just in case'
• That is exactly what I do - if my car has fuel I do not take a credit or debit card to work, nor cash. I take my lunch,fruit for between calls and that's it.
  Tilly
• Woo hoo child benefit has gone up Ј13 a week, I knew it was worth having another baby.
  Not that I'll see any of it, but good Mrs QBW has a bit more.