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Advice on paying off mortgage early

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
3 replies 948 views
madtaffmadtaff Forumite
24 Posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Afternoon all,
Ive been a member of this site for years but never posted. Now my circumstances have changed im after some advice on what to do next.
I am 37 and my wife is 31. We are due to have our first baby in October. We have been a bit care free over the last few years where money is concerned and havent really put as much aside for a rainy day as we should have but saying that we have enjoyed ourselves and as well as spent it on the house and holidays etc.
Ive always liked the idea of being mortgage free and seen that people have done it. I probably wont be able to explain everything but will answer more questions if i have left anything out.

Our current mortgage is up for renewal end of Sept. We have just over £51k outstanding. We originally had a mortgage of £62k, 5 years ago. (Small terraced in South Wales if anyones wondering).

The house was bought for £68k (small loan from dad). We have basically renovated it from top to bottom and believe it is now worth £90k

We have made as many overpayments as we could in those 5 years. Altering the amount of overpayment every few months and depending on what we had on.

The current mortgage is £300 and for the last few months we have been paying £350pmth
We went a while where we were paying £500pmth but my job changed.
We have looked at the finances and now believe we are in a position to pay up to£400pmth but dont want to be trapped into paying this if circumstances change.
My wife will be taking a year off when the baby comes so will be down on money then.

My question is it wotrth going down the remortgaging route and paying off more or invest the extra we were going to pay elsewhere?

Neither of us has a good pension either.

Any help would be appreciated

Regards

Madtaff

Replies

  • beanieloubeanielou Forumite
    76K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    I OP by increasing the DD & by using a bill payment set up through my internet banking which I can use at any time.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 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.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • bexster1975bexster1975 Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!
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    Is it worth putting cash aside to help cover wife's reduced money whilst on Mat leave? I'd have to say, if you don't have much in emergency funds or other savings, I'd be inclined to start there. A few regular savers pay 5% on up to £200 or £300 a month.

    Good luck

    Bexster :)
  • YouthgonewildYouthgonewild Forumite
    167 Posts
    Third Anniversary 100 Posts
    Hi Madtaff - First of all, Congratulations to you and your wife :j

    I'm inclined to agree with Bexster that if you have no emergency funds that would be a good place to start. When I was on mat leave I saved as much as I could of my income which enabled me to have a year off relatively unaffected financially. So it may be worth keeping hold of the extra cash for now - babies can add extra cash onto your shopping bill every week!

    I have a saving account with a bank that lets me put £250 pm in and I get 5% interest over the year. This may be a viable option.

    I think OP'ing may be worth looking at again further down the line when you and your wife have found your feet. One or both of you may decide you wish to change your work/life balance so it's probably best to see what you can afford towards the mortgage when you know for definite. Childcare is expensive too (sorry, not trying to be all doom and gloom, just pointing it out).

    For now if it was me, I'd hang on to extra cash instead of putting it on the mortgage just so you are prepared for any unexpected payments. My boiler broke when I had my first born - not fun for anyone!

    Congrats again :)
    Mortgage balance October 2015: £99875
    Mortgage balance November 2017: £97583

    Mortgage balance November 2018: £90952.08
    Mortgage balance December 2018: £90470.65
    Mortgage balance June 2020: £79561.39
    Mortgage balance October 2020: £77686.25
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