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To mortgage neutral and beyond...
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One-step-at-a-time
Posts: 601 Forumite
Hi everyone! This is really a statement of intent; I’m starting this diary now even though I’m not really going to be doing anything much with it until this time next year.
We currently have ten years to go on our mortgage, and have a fixed rate of 2.19% until March 2023.
Currently there is zero scope to overpay in the budget, but from March 2019 a £500/month obligation will come to an end. At that point we will need to put more money into the day-to-day budget and accelerate credit card debt repayments, but also want to start overpaying the mortgage by a small amount per month.
Even if we don’t start significant overpayments until the cards are clear, we could still knock a bit off the mortgage term, but three years early would be nice.
We currently have ten years to go on our mortgage, and have a fixed rate of 2.19% until March 2023.
Currently there is zero scope to overpay in the budget, but from March 2019 a £500/month obligation will come to an end. At that point we will need to put more money into the day-to-day budget and accelerate credit card debt repayments, but also want to start overpaying the mortgage by a small amount per month.
Even if we don’t start significant overpayments until the cards are clear, we could still knock a bit off the mortgage term, but three years early would be nice.
Debt-free August 21, Mortgage-neutral April 24
2
Comments
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Hello,
Having it all paid off in seven years sounds brilliant. Best of luck with it allMortgage £75,300 (December 2016) Mortgage Free Date December 2051
Mortgage Free Date 2nd August 20241 -
It's been a long time since I started this thread! Things have changed a fair bit and I finally made my first overpayment last month. Everything has been rejigged as the money that was freed up a few months ago is now being split between paying off credit cards and a new pension, but with a starting overpayment of £20/month I can shave off 6 months and nearly £200 in interest.
This bring the current MFD to October 2027, with an ultimate target date of March 2025.Debt-free August 21, Mortgage-neutral April 242 -
Every journey starts with the first step. Congrats on making your first over-paymentAchieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £2.6K Net savings after CCs 6/7/25
3) Mortgage neutral by 06/30 (AVC £24.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 30.1/£127.5K target 23.6% 29/7/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/250 -
Great news on your first OP
I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0 -
It's now three years since I started this thread. Where are we now?
The path is a little different (I stopped overpayments in favour of adding to a pension) but we are still planning to be mortgage free by March 2025. If all goes well we will be consumer debt free this September.
By the time our fixed rate expires we hope to have enough put by to pay off the smaller of the two mortgage balances. That will leave us in a really good position to meet the 2025 target and still put a reasonable amount into savings.
I'll be back once the cards have been paid off to re-evaluate this!Debt-free August 21, Mortgage-neutral April 245 -
That’s brilliant that you are nearly debt free, the mortgages turn will come!MFW 2021 #76 £5,145
MFW 2022 #27 £5,300
MFW 2023 #27 £2,000
MFW 2024 #27 £6,055
MFW 2025 #27 £2,350 /£5,0002 -
What made you decide to overpay your pension instead?2017 - mortgage of £140,000 and interest rate of £10 a day
Feb 2021 mortgage of £103000
May 2021 mortgage of £100000
July 2021 mortgage of £97000
November 2021 mortgage of £93000
July 2022 mortgage of £84000
December 2022 mortgage of £79000
December 2023 mortgage of £73000
March 2024 mortgage of £70000
May 2024 mortgage of £68000
October 2024 mortgage of £65000
February 2025 mortgage of £63000
March 2025 mortgage of £45000 and interest of £6.07 per day1 -
Age! I've not been paying into the pension for long and I'm hurtling towards 50. The mortgage will be gone in a few years regardless.Debt-free August 21, Mortgage-neutral April 243
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The last of the consumer debt was paid off in August.
Debt-free August 21, Mortgage-neutral April 243 -
Great news on being debt free I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.2
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