Project Mortgage Neutral Begins

Moneyfordreams

I did wonder if you were part of the events. either way emotional I expect 

ajmoney

Moneyfordreams said:

I did wonder if you were part of the events. either way emotional I expect 

Yes, we were involved.  I think it will take a while for me to process everything x

ajmoney

Even though my mortgage fix doesn't end until summer 2025, I am tempted to start throwing some extra money at my OPs.  I do want to bolster my savings but seeing as none of the rate rises are being passed on to savers it doesn't make sense to put too much in to cash.  Thinking I might keep my OPs the same and do a larger payment at the end of the year.  I am hoping all this turmoil will have calmed down by the time I have to remortgage!

ajmoney

I have won £25 on the premium bonds this month

ajmoney

I have been doing some calculations this morning to see how close I am likely to be to my MFiT-T6 target by the end of the challenge.  I should exceed it by a few hundred pounds if I keep on the same level of OPing.  I have also done some calculations to see how much I might pay when I remortgage, which is about 6 months later and have played with different timescales.  I am currently due to be mortgage free on this term by September 2039.  Understandably there aren't many products out there at the moment but it looks like I can pay around the same amount as now if I reduce the term to finish by 2035 and fix for 2 years.  At the latest I would like to be mortgage free by February 2030, I would like to be mortgage neutral by September 2027 though.  I don't want to stick to a rigid plan but it is good to see what I can work towards.

Watty1

Congratulations on the PB win.  (Am late catching up but catching up nevertheless)

juliejim

Sounds a good plan AJ.

ajmoney

I have just done the final money shuffle and OP for the year so my thoughts are turning to what I will be doing in 2023.  Looking at my mortgage interest rate compared to some of the savings accounts out there it no longer makes sense to OP but I still want to bring the total down.  I am wondering about OPing the cost of the interest a month and then saving what I would be OPing instead.  I can always transfer a lump sum just before I remortgage.  I guess I am fortunate to be in a position to still do this with the financial climate the way it is.

What is everyone else doing? 

bubblycrazy

I'm saving money in a higher interest account than my mortgage rate and will pay a lump sum off when the fixed rate ends. 

SandyShores

Hi AJ, did you know that the MSE mortgage overpayment calculator now enables you to compare to savings?  You just input all the rates etc and it will allow you to compare OPing and saving, so see which gives you the best savings. Its really useful.
Sandy