March 2025 Mid-Month Update

MOT

It’s that time of the year when our car goes through its annual inspection. Music to my ears was the phone call from the test centre when they told me the car had passed with no issues whatsoever. I’ll squeeze at least one more year out of this car!

Mortgage

Another mortgage payment done. Since it was a short month, We managed to pay off more of the principal than usual, and we also made an overpayment.

Going in Circles

I keep having this internal debate about overpaying our mortgage. Our interest rate is 5.29%.

Here are the options I’m considering:

• Overpaying the mortgage (because I love seeing the balance go down)
• Putting money into savings accounts (instant access to funds, but the interest rate is only around 4%)
• Investing in index funds (potential for higher returns)

My ultimate goal is to pay off the mortgage as quickly as possible. Ideally, I’d like to save enough over the next five years so that the savings match the remaining mortgage balance.

I’m also factoring in potential pay rises at work and the likelihood of securing a lower interest rate when our current fixed term ends.

What’s your take on this? What do you do?

Rents Are Going Up

When I see how much rent costs these days I’m so glad we decided to buy a house. I can even live with our high mortgage rate. In my area, for a 3-bed terraced house, landlords are asking £1,700 per month! Absolutely crazy!

Council Tax

Another year, another increase. This time, it’s gone up by another 5%.

New ENERGY Contract

At the end of last month, our energy contract expired. I kept putting it off, but I finally got around to signing a new one—surprisingly, on better terms!

Fewer Hours at Work

For as long as I can remember, I’ve been working over 40 hours a week—currently 44 hours. Since we have kids, I sometimes need to step out for things like doctor’s appointments or other errands. To avoid using up my holiday allowance, I stay longer to make up for the lost hours.

For the past year, I’ve been thinking about cutting those extra 4 hours, but I worry it might affect future pay rises. On the other hand, I’d love to finally get a taste of what financial independence feels like.

What do you think? Would you do it?

Bikes in the Attic

I need to dig through the attic, where among a million random things, we have two folding bikes. Our kids have mastered cycling well enough that it’s almost time for family bike trips!

On top of that, I should start commuting to work by bike again—the weather is getting better.

Does Travel Hacking Exist in the UK?

One last question—there’s a lot of talk about travel hacking and earning loyalty points through credit card use. Unfortunately, most of the info online seems focused on the US market.

Do you know of any reliable UK-based sources on this?

March 2025 Mid-Month Update

Our saving rate is: 41% (includes mortgage capital and overpayments, ISA investing, and workplace pension)

We overpaid our mortgage by: £500

The remaining mortgage is: £162114.2

We should be able to pay off our house in 7 years!  I’ll be 52 by then. Assuming nothing changes—no pay rises or unexpected expenses.