Mortgage free in 10 years

Sepa74

Congratulations! What a difference in rates. You will really see the difference.

I guess the next thing is to focus on getting the best savings rates... although if you are a higher rate saver you may find it a challenge to find a rate that beats your mortgage rate once your ISA is filled.

Savings interest rates are pants at the moment!

originalmiscellany

Well said Sepa. Going from 6 to3% is a massive difference - and just keep your eye on the target... You'll get there soon. I think it's going to be another year and a half of low, low rates. Full ones boots if one can.

Engeroosi

Yeah thinking fill the ISAs then anything left will put into mortgage.

Once the rates start to rise again it will be more worthwhile to pay mortgage off, until then I think we may enjoy ourselves a little more and make sure we fill the ISAs up as soon as we can. Ideally I would of liked an offset but the deal was too good to refuse and having th money in savings is similar to offset. apart from the money in the current accounts.

Twiddy

Great plan Engeroosi and well played on the new mortgage rate, that will definitely see the savings/eventual overpayments make proper dents into the outstanding balance.

Have subscribed and will be watching with ermmmmm.......interest? (Sorry!)

All the Best
T

:beer:

Engeroosi

150 payments to go, unless of course I overpay, but struggle to see benefits of overpaying with the interest rate now 2.99%. Its a bit of a let down, before i would be excited about reducing the balance but not as much fun now.

Jock_Tight

Its a marathon not a sprint, sometimes its difficult to keep motivated

Why not do a bit of both, overpay a bit and save the rest in the ISA?

All the best on your journey!

Jock.

Tilly_MFW_in_6_YRS

Hi Engeroosi, I appreciate that 10 years still seems like such a long time, however, the more you pay off now, whilst the interest rate is low, the more capital you clear. You will make real inroads into clearing the mortgage now and that is a huge motivator. Once your ISAs are full for perhaps this year and saved up for next financial year, then I would throw as much as possible at the mortgage.

You still need to live and have fun, but this doesn't have to cost a fortune so you can balance the two.

Good luck with your journey and I truly wish you success.

Best wishes Tilly:beer:

Engeroosi

i agree with filling the ISA but bearing mind the low interest rate and high inflation, the amount I pay each month is being eroded by infation, ie in 6 or 7 years a mortgage of 700 per month or therebouts will be considerably less percent of monthly salaries assuming salaries go up similarly with inflation. So more reason to just enjoy the money now rather than be tight and not enjoy life. might be the wrong viewpoint for this forums but its more and more of my opiion now.

Sepa74

I see your point, but inflation is coming down now, so you could have a ball next year, and then maybe start overpaying the year after when inflation is lower?

I read somewhere about how valuable ISAs are later in life, because if you let them build right up you can earn a LOT of tax free interest to supplement your income - so I'm a also going to rethink my ISA strategy, (which is not to have one!) in a couple of more years, probably when the money in my offset reaches the £85K govt guarantee limit. My interest rate is similar to yours (3%) but at the moment I have nothing better to do with my money so it might as well sit in my offset account saving me interest. As a higher rate taxpayer 3% is a great interest rate, especially for so little hassle!

Engeroosi

I speak to my gran parents etc and they go on about earning 5 pounds per week etc 50 years ago, which leads me to believe saving 5000pounds a year in todays money will be similar to saving 50 pounds a year 50 years ago, its nothing. So why concentrate so much on saving for the future, better enjoy the money now while its worth somethin I say!!!
Totally changed my opinion of late, maybe my light bulb has went off!!!