Hoping to be mortgage free by 45

edpvitoedpvito Forumite
46 Posts
Forumite
Hello, glad to be joining this group of freedom fighters!

I am 41 and have lived in France and now currently in Sweden. I am returning to the UK, to my small house, for career purposes and intending to get mortgage free. I guess I might have different aspirations than many on this thread in that I would like to sort my affairs out so that I have 100k equity and then I shall buy somewhere - either in France or Sweden - for that value, so my goal isn't to pay off the balance on my mortgage as such. Just start overpaying and follow the market. I was one of those lucky b&ggers to have got a Bank of England base rate tracker mortgage just before the proverbial poo hit the fan in 2008. I havent really taken full advantage of that in terms of overpayments but it did allow me to take some time out of the rat race for a while. It looks like I have a couple of years, according to forecasts, to start making some dents in to the capital before the rates start to hike up again. At the moment, taking other bits of debt in to account, I have about 70k in equity...but my house seems to be in an up and coming area so I have some high hopes.

Best
ed
Debt [STRIKE]06/14[/STRIKE] 09/14 : [STRIKE]MBNA: £252[/STRIKE]
AMEX: [STRIKE]£1283[/STRIKE] £615
Northern Rock: [STRIKE]£3300[/STRIKE] £2500
Santander Overdraft (at pay day):[STRIKE] £1200[/STRIKE] £1000
Swedish Tax Office: [STRIKE]£428[/STRIKE] £1000
Debt free goal date: 06/15

Replies

  • atushatush Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    What would you do with a property in Sweden or france if you are living in the UK again? Would you rent it, use it as a holiday home? Would it provide an income (in excess of any borrowing costs)? What would you do if rates go up?

    Also, do you have a pension in the UK, or any elsewhere?

    I overpay my mtg, even though the rate is low. But I also pay into pensions, save cash, and pay into investments. Having a pension to provide for you at retirement is very important, and should not be overlooked in a rush to pay off a mtg?

    Basically, esp as you have been living overseas, you need to think about all your savings and pensions incl state pension in concert with any new property purchases.
  • edpvitoedpvito Forumite
    46 Posts
    Forumite
    Hi,

    I intend to live in it. I am moving back as a means to an end not the end in itself. I have been living in Sweden for a while but was offered a better opportunity than I can currently find where I am living in Sweden. My partner is Swedish so it is more than likely that we will move back here at some point but in a stronger financial situation and with stronger employment possibilities - ideally as a contracter. 'We' also own a small apartment here. I have a private pension pot in the UK and now a smaller private pension pot in Sweden that I should be able to combine in the qrop scheme. I have also continued to pay NI contributions although that is something I need to investigate in terms of reaching 30 years contributions. I would think that come the time my pension will be sub-optimal because my private pension pot is not that big at this point but I guess you have to make comprimises for your choices. I think a lot of people hit later life without any provision. I figure that living mortgage free will allow me to make creative choices with my life that might be lucrative but might not be. Who knows the future? You are right to ask these questions about pensions. I do think about it but dont quite have all the answers. I suppose the worst case scenario is the basic income support pension that you find in the UK, its the same in Sweden, with a small additional payment from my current private pension pot. The best case scenario a full UK state pension and a decent private pension pot. Obviously the real worst case scenario is not making retirement!
    Debt [STRIKE]06/14[/STRIKE] 09/14 : [STRIKE]MBNA: £252[/STRIKE]
    AMEX: [STRIKE]£1283[/STRIKE] £615
    Northern Rock: [STRIKE]£3300[/STRIKE] £2500
    Santander Overdraft (at pay day):[STRIKE] £1200[/STRIKE] £1000
    Swedish Tax Office: [STRIKE]£428[/STRIKE] £1000
    Debt free goal date: 06/15
This discussion has been closed.
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