Team Remote_Control: Mortgage-Free before I'm 63

remote_control

Thanks Ftb. I just don't see that I will earn much for the next 10 years as I want to stay part time while the children are at school. I also have a postgraduate loan, hadn't realised quite how high the interest was on that! 

remote_control

Playing around with the mortgage calculator and I think we need to overpay £1000 a month to clear before we are 50. We could probably afford this but then I wouldn't have any spare for saving and investing. Reading the FIREside thread makes me feel like I should be investing not overpaying.

Anyway, I have my plan for the rest of the year and I will stick with that. Overpay £500 a month, save as much as possible. This time next year the 0% cards will be cleared and we'll remortgage in June. We'll see how the land lies then. My head is in a muddle.

rugbymadfamily

Its such a hard balance isn't it?! Mortgage OPs vs investing or both but if both, what should the split be?! I'm paying more into the mortgage at the moment because I want us to drop down to 80% LTV before our mortgage renewal in 2023, but after that I think will look to increase the investing. But I like the certainty of the mortgage OPs as I know exactly how they bring down the mortgage and interest, whereas investing has less certainty. Its such a tricky balance! 

remote_control

I'm enjoying my Monday mortgage overpayments.

Student loan refund came in so half to premium bonds and half to mortgage overpayment. 

remote_control

First of the month update:

Mortgage: £373,790.73
Daily interest ~ £20.19
Debt on 0% £12598.40
Overpayments so far April: £880.27
Savings £5000

Target for 2021: One bit of our mortgage is £110,112.08, I would like to have this bit starting with a 9 by 31st Dec. Also to have £5000 in savings. 

t2rry

*subscribed* - I’m sneaking across from my DFW threads - looking to the future and all that!! Brilliant goals to have in mind

remote_control

Hi t2rry, I've just read through the last few pages of your diary, you've done so well! How big is your mortgage? What are your plans once the last CC is done?

t2rry

remote_control said:

Hi t2rry, I've just read through the last few pages of your diary, you've done so well! How big is your mortgage? What are your plans once the last CC is done?

Thanks! Yes on the home straight now so really pushing it!  Our mortgage is currently just under £200k, but I haven't shared on my diary that it's going to increase to £390k soon!!!  That's the plan following the last debt being gone anyway!! That includes a move and taking some equity out to spend on the new house, so hopefully we'll make a decent amount of that back pretty quickly in equity.  Once that happens and we are settled with the monthly payments etc, it will be my next focus I think, even if it's only small overpayments as on that kind of mortgage I imagine even small amounts could make a big difference!  Plus our ability to save month to month should still be pretty good

remote_control

Sounds exciting and it will be nice to have someone else around with a mortgage of nearly £400k! 
Sometimes the mortgage seems insurmountable but then our current overpayment of £125 a week is not to be sniffed at and obviously better than nothing. 
The first few months after the move will be expensive but once you're settled I'm sure you'll be smashing the OPs!

t2rry

It is exciting, a little daunting but very exciting.  It will be our forever home I think, and only the second we've owned, so we are looking forward to getting it right for us after learning a lot in the first!  I think £125 a week overpayment is fantastic, probably £125 a week more than the vast majority of people make!! I worked out with our current mortgage that with overpayments like we've been making to debt the last year, we could be rid of it in around 7 years, which means around 14 for the new mortgage...if we lived like we have been for the last few years and scrounging every penny, so that won't happen but I would definitely like to give us options and hopefully pay down enough to give us some added security