Suze's quest to be mortgage-free by 40

getmore4less

We are looking at how much we could increase the monthly payments so we can get rid of the mortgage even quicker.


If you are 100% ofset you can just pay the mortgage from one of the offset accounts.

Income is all availabe to do other stuff, its no longer paying the mortgage the mortgage is just a convenience for accounting and easy access to cheap money.

Its now a spending/saving ballance of all income.

dimbo61

I know nothing about S&S ISA,s having never had the money to invest in them!
But if you pay £1500 off the mortgage balance each month you then need to take £1500 out of the offset account each month and either fill your cash ISA,s , S&S ISA,s or regular savers.
Nice place to be as such a young age but you need to think about investments for your retirement

gelato_cat

I take your point, but the money is spread around so it would mean cleaning out a few different accounts. Also, if we paid the mortgage now, it would leave us with very little spare cash for emergencies. Having everything offset and paying the mortgage in instalments means our cash flow is more manageable.

Suze

getmore4less wrote: »

If you are 100% ofset you can just pay the mortgage from one of the offset accounts.

Income is all availabe to do other stuff, its no longer paying the mortgage the mortgage is just a convenience for accounting and easy access to cheap money.

Its now a spending/saving ballance of all income.

gelato_cat

Yes, very true. I need to sort myself out with some financial advice... I have a couple of pensions but have no idea what level of income I should expect from them when I retire.

I often wonder what the situation for OAPs is going to be like in 30 years' time as I know most of my friends are the same as me (no clue about investing for our retirements).

Suze

dimbo61 wrote: »

I know nothing about S&S ISA,s having never had the money to invest in them!
But if you pay £1500 off the mortgage balance each month you then need to take £1500 out of the offset account each month and either fill your cash ISA,s , S&S ISA,s or regular savers.
Nice place to be as such a young age but you need to think about investments for your retirement

getmore4less

Suzey wrote: »

I take your point, but the money is spread around so it would mean cleaning out a few different accounts. Also, if we paid the mortgage now, it would leave us with very little spare cash for emergencies. Having everything offset and paying the mortgage in instalments means our cash flow is more manageable.

Suze

OK you need a rethink, you are 100% offset the net debt is zero so no need to pay it off just use the offsets, one or many makes no difference unless they are for other debts then I missread the posts.

All income can go elsewhere if there are no other debts.

If the money is not offset but earning more interest elswhere then the same applies, invest before paying off the mortgage if the return is better just make sure you can get the money back when needed.

if we still have it wrong perhaps a summary rather will help
mortgage, offset pots, debts, savings, investment with the rates will help