Paying off mortgage before 55 when single

getmore4less

Do you have a budget and SOA.

even with variable income you should be able to baseline a budget.

Then have your discretionary spends and overpayment come out of any income over the baseline.

Mixing work/private expenses is not a good idea unless you use tools like MSmoney to manage them.

with mortgages at 2.49% and 3.49%(2.79 20%, 2.05% 40% tax) you are only better off paying the residential if you are 40% taxpayer.

Dalradian

Yes, i have a rough budget. i started paying into savings and pension quite heavily last year and the mortgage repayments are over and above that.

My credit cards are really used for larger purchases which need payment protection, and to get cashback eg fuel, but on my current balance of £3k (payment goes out next week so higher than normal) only around £500 is "mine" because i bought a new tv last month.

I am in a tax bracket where i am using private pension payments to reduce marginal rates, and that it is worthwhile to overpay mortgage having built up an emergency fund. I know i am very lucky compared to many, but am enjoying the fact that for the first time since i started work that i *don't* have to account for every penny even whilst saving for future.

happydays_70

Thanks D, I spend my life juggling and fighting fires rather than being in control of the situation. I do enjoy filling in spreadsheets and chipping away little by little of my huge mortgage. I wish I had been as focussed as you pre-children. I didn't have a care in the world and just coasted from month to month..naughty.

Dalradian

I had a debt wake up call after i got my first flat - i was £3000 in debt and realised if i didn't stop there i would always be worrying. So cut up my cards and just used cash for a year. Definately helped me focus!

Dalradian

I have a cash 5 year isa which has another 4 years to go - i was wondering if i should cash it in and offset the money against the mortgage, as the rate i get is still lower than my mortgage rate?
i am really keen to get below the £100k mark, as a major psychological achievement towards repaying it. I will lose 120 day interest, but it is still £5k or so to put towards the total. What do people think?

Dalradian

Made a huge cottage pie - enough for another 7 meals. Frozen the spares for when i can't be bothered to cook. Yummy

A_Frayed_Knot

Dalradian wrote: »

I have a cash 5 year isa which has another 4 years to go - i was wondering if i should cash it in and offset the money against the mortgage, as the rate i get is still lower than my mortgage rate?
i am really keen to get below the £100k mark, as a major psychological achievement towards repaying it. I will lose 120 day interest, but it is still £5k or so to put towards the total. What do people think?

So long as this is not all your savings then I would definetly go for it. I just emptied (all but about £3.00 to keep it account open) my isa as I felt it would be put to much better use towards my mortgage.

I have had no regrets, it gave me such a boost to see how much I would be saving over the years, not to mention the new balance:j

Runders

Hi Dalradian,

I'm also single and trying to OP the mortgage. I'm 32 and in my first buy, but I want to try to get the mortgage down as much as possible to be able to move on more easily. I don't want to live here forever, but at the same time I wouldn't mind turning it into a rental.

Good luck with your journey!

sheeps68

Hi. I'm also single and next month my mortgage will be paid off at age 47. I have had a lump sum payment as part of ill health retirement. But I can hardly believe the mortgage will be paid off. For the last 10 years I've been over paying my mortgage and for a log time felt it was having little impact. It's been tough and really tight at times financially. But here I am now about to be mortgage free and have security of my home so it really has been worth it.

Dalradian

Just got £19.22 through from quidco, plus £100 as a returned deposit for a trip i had to cancel. Need to get to the bank to pay it in! Will wait till i get paid before making an overpayment as have a min £500 overpayment requirement.

Definately thinking about cashing in some of my stuff that isn't in my pot for retirement and trying to get below £100k in the next 18 mths. Am looking to update my bathroom and kitchen, and will need a holiday at some point so will have to balance life and overpaying!