Mortgage Free is in sight

[Deleted User]

Hi everyone,

I'm after a bit of advice around future options for savings as I am quickly approaching MF status.

I'm 34 and as of now I have an outstanding mortgage balance of circa £95,875 on my mortgage that has 29 years left on it with a monthly repayment of £522. It's currently on SVR as I have been saving like mad (unsure yet whether to remortgage or just pay down on existing deal, I have no overpayment penalties or early repayment charges on the current deal and with the timescales I'm looking at I am leaning away from a remortgage on that basis).

I plan on shortly making a one-off overpayment of £69,102. As well as continuing to make the £522 a month payment I have calculated that I could make an additional monthly overpayment of around £1920.

This would mean the mortgage is paid off within the next year :j and it will save me another 28 years of payments. This has taken a few years to get to this point and now it's nearly here I am trying to figure out where best to put my cash when we have no mortgage.

I have no ISAs or anything right now, everything has been about getting the mortgage paid off. I'm 34, no kids and no plans for them. By my calculations once the mortgage is gone I will be able to regularly put away £2,442 a month for the next 3.5 years, then once that time frame is up and my personal loan for my car is repaid I can increase that to roughly £2792 a month.

So, over the course of a year that equates to roughly £33,504. I have no plans to buy a bigger home or anything like that so the only thing left really is retirement. Presumably I could chuck the lot into a pension and get the tax relief on it to maximise my savings on that front? Over 10 years it equates to £323,132 before interest etc and that's not accounting for expected salary growth over that time period.

Outside of pensions, presumably an ISA is the best option. I would like to keep some of the money somewhere I can access it - don't mind tying it up for a few years just don't want to put it all in a pension where I can't touch it so I'm just not really sure how best to divide the money up and wondered if anyone has any thoughts?

People have told me in the past to look at property but I am very wary of it given prices can go up as well as down plus the incentives on things like Buy To Let don't seem to be as compelling as they once were. I've been massively burned by negative equity in the past on my own home.

TIA!

Youthgonewild

Well done on getting so far ahead with your mortgage! That's phenomenal!! You might be better posting the latter part of your post in Pensions and Retirement forum. Personally I would be looking at the most tax efficient way of saving and also having easy access to the money should I need it.

Good luck whatever you decide:)