Paying off mortgage before 55 when single

Dalradian

Thanks for the kind comments A Frayed Knot (great nym!), Runders and Sheeps68.

I am getting a bit obsessed putting figures into the overpayment calculator just now. Having taken on a large mortgage in my 40's, after nearly reaching financial independance (savings greater than overall debt) it seems a big mountain to climb. But just posting the figures on here makes it more real, and encourages me to keep going. Hope you do well on your journeys as well

Rachiedabbler70

Hi Dalradian

I too am single, mid forties and overpaying my mortgage - slowly at the moment as I have another £3800 of debt to get rid of as well although it is 0%. I have 2 kids so can't go too fast, but try to use 50% of wage for living and 50% for debt/ mortgage. Talking to a mortgage advisor tomorrow about a lower fixed rate mortgage to see if I can free up a bit more cash.

Good luck with your quest - will keep watching how you get on.:D

A_Frayed_Knot

I too get obsessed frantically putting figures into the overpayment calculator. Just love it.

I'm a good bit older having taken on my first mortgage age 52 and would love to consider a btl property as well, just don't know how to go about this atm.

Wish you well on your journey and will pop in from time to time, if you don't mind.

Dalradian

I am looking to get rid of my btl property once the penalties have funished. It is costing me in repairs and mgt fess, plus you start having to factor in capital gains tax.

The value of it isn't going to shoot up, as it is in london, so rather invest in savings which invest in a property fund, which eliminates to risk of idle property, relisting fees etc

Dalradian

Rachiedabbler70 - thanks for stopping by. I remortgaged when my fixed rate was up and saved nearly a hundred pounds a month off svr. Definately worth checking out, especially since house price rises might put you into a better ltv band even if you haven't overpaid much - whuch happened with my btl

Rachiedabbler70

Hi Dalradian

New mortgage sorted from early next week - LTV dropped to just under 60% so interest will be 2.34% fixed for 5 years with no fee - very happy with that. After clearing my 0% card I will be overpaying by £500 per month and should also be able to save as well. My target is to keep living on 50% of what I earn and save and overpay with the rest.

I've subscribed to your thread so good luck - sounds like you are doing very well.

Dalradian

Just paid in £100 refund of deposit for holiday i couldn't go on. Since it was meant to be non refundable i am pretty pleased. Got £45 in cashback from credit and debit cards plus a £19.20 payment from quidco so overpaid my mortgage by £500 to celebrate.
Also went and booked a holiday, but applied for a halifax clarity card to minimise payment charges when going abroad. Hmmmm, not really saving money, but expecting a big bonus this month so best pay for things when i have the extra.

Dalradian

Cancelled my cash isa and paid the money into my mortgage - since i am a higher rate taxpayer the interest was pretty much nothing compared to my mortgage 2.49% rate

SuperSecretSquirrel

Dalradian wrote: »

Cancelled my cash isa and paid the money into my mortgage - since i am a higher rate taxpayer the interest was pretty much nothing compared to my mortgage 2.49% rate

You don't pay tax on ISA interest so your marginal rate is irrelevant. You can't beat 2.49% without locking in for years at the moment though, so probably still a good decision

SuperSecretSquirrel

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