To mortgage neutral and beyond...

One-step-at-a-time
One-step-at-a-time Posts: 601 Forumite
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edited 17 December 2023 at 2:45PM in Mortgage-free wannabe
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.
Debt-free August 21, Mortgage-neutral April 24
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Comments

  • Hello,

    Having it all paid off in seven years sounds brilliant. Best of luck with it all
    Mortgage £75,300 (December 2016) Mortgage Free Date December 2051

    Mortgage £11,500 (March 2023) Mortgage Free Date August 2024
  • One-step-at-a-time
    One-step-at-a-time Posts: 601 Forumite
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    edited 24 August 2022 at 4:05PM
    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 24
  • savingholmes
    savingholmes Posts: 27,334 Forumite
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    Every journey starts with the first step. Congrats on making your first over-payment
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26%
    2) Spend on handyman & external building works & new patio door £11.9K
    3) CC £3.9K on 0% spends card but offset by £34.1K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £9.6K/£127.5K AVC target 7.5% value @15/4
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • beanielou
    beanielou Posts: 90,203 Ambassador
    Academoney Grad I'm a Volunteer Ambassador Mortgage-free Glee! Name Dropper
    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.
  • powerspowers
    powerspowers Posts: 1,111 Forumite
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    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 £1,075 /£3,600


  • 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
  • One-step-at-a-time
    One-step-at-a-time Posts: 601 Forumite
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    edited 16 September 2021 at 8:45AM
    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 24
  • One-step-at-a-time
    One-step-at-a-time Posts: 601 Forumite
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    edited 17 December 2023 at 2:46PM
    The last of the consumer debt was paid off in August. 



    Debt-free August 21, Mortgage-neutral April 24
  • beanielou
    beanielou Posts: 90,203 Ambassador
    Academoney Grad I'm a Volunteer Ambassador Mortgage-free Glee! Name Dropper
    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.
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