5 years to freedom?

My remortgage completed today, so it’s time to put in place a plan to pay it off. Unlike previous remortgages, I approached this one with the intention of it being my last, so I’d better put that plan into effect now.

The numbers:

Loan - £100,000
Term – 10 years
Fixed rate – 5 years at 2.2% (or possibly 2.25%)
Overpayment limits – entirely unlimited
House value approx. £300,000

The ability to overpay cost me a slightly higher rate, but it’s still lower than the deal I’ve just moved from.

The plan…

  • Overpay each month by keeping my payments at what I’m paying on my current deal rather than taking advantage of the fact that they’re £150 per month cheaper on the new rate.
  • I’m due to receive an inheritance late this year or early next year. I’m an executor as well as one of the beneficiaries so I know what the numbers are and have control of the process. We’re currently in the process of selling a house, then the proceeds need to be divided up. I’m planning to use some of this for other things, but around £30-40,000 will be paid off my mortgage. (I did consider staying on my old SVR until I received this and only remortgaging for a lower amount afterwards without the need for as much flexibility in overpayments, but for various reasons it was easier to remortgage first).
  • I’m currently also putting money into other places each month - £200 5% regular saver, £250 SIPP, £350 S&S ISA, £100 LISA, plus some AVCs into my work pension – so I could divert some of this money to mortgage payoff, but I’d prefer not to put all my eggs in the housing basket as the mortgage rate is relatively low.
Points 1 and 2 combined would allow me to clear the mortgage in slightly over 5 years, so at the 5 year point I may pull something from cash savings to just clear the balance rather than reverting to whatever the SVR is by then.

Does that sound like a plan?


  • beanieloubeanielou Forumite
    82.9K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    Happy shiny new diary :)
    Sounds like a plan to me!
    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.***
  • louloubelle79louloubelle79 Forumite
    411 Posts
    100 Posts
    We in similar position as you, 10 yr fix with 6 yrs left with £102k outstanding. Will be following :beer:
  • zcrat41zcrat41 Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Sounds like a great plan!
  • julicornjulicorn Forumite
    2.2K Posts
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    Happy new diary! Can't wait to see how you get on :)
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Mortgage neutral: September 2022, mortgage redeemed: December 2022
    New house, new mortgage: December 2022, £276,007
    Current balance: £223,500
  • hjghg5hjghg5 Forumite
    38 Posts
    Seventh Anniversary 10 Posts Combo Breaker
    A bit of a change of plan, but some progress. I realised that trying to clear my mortgage as quickly as possible might not be the best use of my money, so I've come up with a bit of a plan to pay it down but not quite as aggressively, and spread my money around a bit more as follows...

    Mortgage - I've just repaid (today!) £15,000. That brings my balance below £80k, and my term to 7 years and 10 months. I'm holding off on deciding whether to make regular overpayments too.

    Pension - I've massively increased my contributions to my workplace pension from 5% to 20% (plus 7% employer contribution). A pay rise helped here ;-) I'm also still contributing £250 per month to my SIPP (although as the workplace pension is salary sacrifice I might dump this contribution and bump up the workplace one a bit more).

    ISAs - I paid in the full £20k for the last financial year (£16k S&S, £4k LISA) and will do the same again this year (£11,800 already paid in, then carrying on with £350 + £100 per month to the S&S ISA and the LISA).

    Regular Savings - still £200 per month, but now only at 3% :-(
This discussion has been closed.
Latest MSE News and Guides

Check your Clubcard vouchers

Use our trick to extend them

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals