Aim to be mortgage-free whilst in my 50s

Hi, I'm new-ish. I signed up ages ago but haven't managed to get my head round how to post properly yet, so hope this is the right place!

My big aim is to pay off my mortgage as soon as possible. I'm 54 now and I work in a demanding, exhausting (and rewarding!) job as a midwife. I took out my mortgage for £90,000 in August 2004, and it is currently down to £56,050. I have a tracker offset with First Direct (1.49% above base rate) so I'm paying 1.99% at the moment. It's on an interest-only basis (the interest comes to around £90 a month) so I'm making ad hoc capital repayments of over £1,000 a month. This is made up of £300 which I pay into a Regular Saver ISA (8% with FD) but is earmarked for my mortgage. My salary is around £2,000 a month so my mortgage repayments represent over half my income. I'll be borrowing back £2,000 from the mortgage (or a couple of months worth of capital repayments!) to pay for double glazing, but otherwise my aim is to become mortgage-free whilst I'm still in my 50s. So I thought I'd post here for some motivation!

Replies

  • JonbvnJonbvn Forumite
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    Since your mortgage rate is quite low, it is better to save than overpay.

    Since you are over 50, your ISA allowance will increase from October 2009 to £5,100 per annum. I would recommend you use this.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • hi just thought id wish you all the luck in the world with your challenge.And also its thanks to midwives like you i have a happy healthy boy so keep up the good work :)
    Mortgage free:beer:

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  • Hels50Hels50 Forumite
    28 Posts
    Thanks Jonbvn for the advice about ISAs. i wasn't aware of the additional ISA allowance for over 50s from October, will it take effect for this tax year? I don't think I'm allowed to save more than £300 a month with First Direct. I took out the ISA in July, so it carries on until next July, even though the tax year runs from April to April. Am I allowed to save the difference (both this tax year and next year) in another ISA somewhere else? And is there an ISA anywhere that pays more than 1.99% at the moment?
  • dimbo61dimbo61 Forumite
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    Hi Hels 50
    As one of them dammed Paramedics who keeps bring you work I am a little confused.
    You have a regular saver ?
    You pay £300 a month into this saver and you are getting 8% tax free ( well done)
    You could have put £3600 into a cash ISA in april and another £1500 from october to make up the £5100 for this year.
    come next april you can then pay in £5100.
    If you have your ISA with First Direct you need to give them a call.
    Well done on getting a very good mortgage deal and overpaying it each month.
    You cant have two ISA,s with different companies in the same tax year( april to april )
    Well done on clearing £34,000 off your mortgage in only 5 years.
    You should be able to get more than 1.99% from an ISA but if you cant then put the money into your offset account.
  • Hels50Hels50 Forumite
    28 Posts
    Hi dimbo61,

    I have a Regular Saver ISA into which I've been paying £300 a month since July, so I've only made 2 payments so far. I emailed FD and they say I can make a one-off payment of £1,500 or add another £150 a month to my subscription from September, to make up to the £5,100 allowance. I've asked them to take the one-off payment, which I understand they will take in September. The ISA rate is 7%, not 8% as I'd first thought, but it's still a very good rate and I don't think it's available any more.
  • dimbo61dimbo61 Forumite
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    That is a very good rate and much better than offsetting the mortgage.
    Barclays did have a 6% regular saver ( before TAX) £300 a month and this would earn you more interest than you pay on your mortgage.
    Keep up the good work
  • chirpchirpchirpchirp Forumite
    2K Posts
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    Hels50, the ISA allowance of £5100 doesn't take effect until October. Be careful not to overpay early - not sure you can overpay early and not sure what the penalties would be of doing so.
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