Mortgage neutral in 8 years!!!

Retireyoung

I have been reading these diaries for a while now, picked up some great tips and very inspirational.

We are just about to move to our forever home and taking on a rather large mortgage, so an ideal time to start our own diary. The rate on the mortgage is only 1.24% and we feel we can get a better return investing the overpayments rather than paying off the actual mortgage, hence the title ‘Mortgage neutral in 8 years’.

The mortgage is going to be £390,000 over 30 years. We have a good start on the road to being mortgage neutral as we have savings of £165,000 so this will leave us to find £225,000 over the next eight years. We are very fortunate that I have a good salary and we don’t have an extravagant life style so our savings rate will be high. 25/12/25 is the target neutral date just because it has a good ring to it.

So in summary:

Mortgage = £390,000
Savings = £165,000
Need to save £225,000

Wish me luck.

lincoln-potter

Welcome retireyoung, and good luck with the over payments.

I shall watch your progress

Jessy103

Good luck with your journey Retireyoung! I will be watching with interest and look forward to some of your saving tips!
Jess x

Retireyoung

I have not been very good at keeping this diary up to date.

All moved in and things have now settled down a bit. I could of increased our savings figure with my end of year bonus but decided to put it into my pension to get the tax relief.

Figures to date:
Mortgage = £388,275
Savings = £168,738
Need to save = £219,537

So £5.5k closer to the target since last update.

Retireyoung

Well overall May has not been a great month. One of my investments took a big hit so savings have suffered, I'm sure it will be fine in the long term so not too worried at the moment.

Figures to date:
Mortgage = £387,400
Savings = £157,100
Need to save = £230,300

So gone backwards the best part of £11k in a month, hopefully be better next month.

originalmiscellany

I tell you what retireyoung, you're in a different position to me, but I love the fact you're sharing your journey with us If I "lost" 11k in a month I'd be terrified but I think long term, you have got it nailed on. looking forward to a better month next month.

Retireyoung

Hi OM

Dropping that amount is not something I enjoy but I cannot complain as the markets have been very good to me over the last few years.

So another month has passed and again it has not been a great one. Investments took another hit this month. As we are in this for the long term it should be ok, next month a non-listed company we have an investment in will be revalued so I expect this to have a positive contribution in July.

In the figures I don’t include the money in our current account maybe I should as this money could go towards the outstanding mortgage.

Figures to date:
Mortgage = £386,500
Savings = £153,500
Need to save = £233,000

Retireyoung

So another month has gone by, July has been very good as I got a healthy tax rebate after adding a bonus to my private pension. I have also decided to add the cash in our bank to the figures which is in a good position at the moment due to the tax rebate.

Figures to date:
Mortgage = £385,650
Savings = £174,050
Cash in bank = £11,400
Need to save = £200,200

£33K closer to the goal of being mortgage neutral in a month. Don’t think there will be many months like this in the future.

Viking_mfw

One month like that would be good enough for me! Excellent news :beer:

Retireyoung

August has been another great month on the mortgage neutral front, not as good as July but I don’t expect that sort of performance very often. The investment that took a large fall in May has now recovered which accounts for this month’s gains.

Our daughter starts school in September so we will start saving on nursery fees moving forward.

Figures to date:
Mortgage = £384,775
S&I = £183,300
Cash in bank = £11,000
Need to save = £190,475

Retireyoung

Another month has flown by. Investments not moved much this month in the end, there had been a few up and down swings but finally settled £900 up. It is nice that the mortgage is getting smaller with every payment, our last mortgage was interest only so the outstanding balance did not change for five years.


Figures to date:
Mortgage = £383,900
S&I = £184,200
Cash in bank = £11,700
Need to save = £188,000