The 17 Year Goal ....

edited 8 October 2019 at 10:17PM in Mortgage-Free Wannabe
33 replies 3.8K views
Want2BeFreeWant2BeFree Forumite
18 Posts
edited 8 October 2019 at 10:17PM in Mortgage-Free Wannabe
Hopefully this forum will still be around in 17 years as it is a fantastic source of information and inspiration!

I am a member of the armed forces, living with DW and have no kids (yet). We have just bought our first house and will move in the first week of November. We have got a 5 year fix mortgage at 2.14% of £235000 on a 25 year term, which is ~79% LTV. Our ultimate goal is to at the end of my service career, in 17 years;
  • Be mortgage free
  • Have £100,000 in my S&S ISA
  • Own an Aston Martin
With a 4% SWR from the ISA and my armed forces pension this will give me ~£1000/mo, to cover all our essential expenses, meaning I will only have go to work just luxuries, like holidays, at that point in my life.

The first objective is to get the LTV to 59% by the end of the 5 year fix in order to gain access to the best possible deals at that time (who knows what the interest rate will be in 2024!!) I aim to do this by supplementing the mandatory £1012.15 payment with 237.85 to a nice round £1250.00/month. I think this will be manageable most months, as the amount of money we have saved each month towards our deposit + the payment for our married quarter was more than £1250/month (on average). We will also need to make a few extra payments to hit the 59% LTV target, so here is hoping for armed forces pay rises that at least meet inflation! In ~4 years my student loan will be paid off, so that is an extra 9% of my above threshold earnings I can put towards the mortgage at that point.

I currently stick £250/mo into my S&S ISA and invest it into 5 different funds spreading the risk across global markets. I also have invested a few small lump sums as 'punts' into individual companies, because, who dares wins, right?

We also have a lump of cash savings which we plan to use to upgrade/redecorate the house when we move in (magnolia paint is banned). We will keep some of this cash savings as an emergency fund, just in case

My ambition with this diary is to keep a diary and place some accountability on myself to stick to the plan!
«134

Replies

  • beanieloubeanielou Forumite
    77.8K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    ✭✭✭✭✭✭
    Happy shiny new diary :)
    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.***
  • longway2golongway2go Forumite
    914 Posts
    Part of the Furniture 500 Posts Name Dropper
    ✭✭✭
    Good luck and welcome.
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823🙂
    EF 0/12,000 (0%)😕

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
  • Hello there! I'm a new diary-keeper too, so will subscribe to your thread and cheer you on! :T
    Mortgage: £81,154.58 (03/19) - £72,705 (02/21)
    Emergency savings: £2500 (08/19) - £2000 (02/21)

  • savingholmessavingholmes Forumite
    16.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Sounds like you're off to a really good start
    During 2021: Target 1) Clear CC debt - £2128 to go (but debt neutral) @ 0% Target 2) Lose weight 3) Write regularly 38113/70000 words Book 2 4) Promote book(s) 5) Develop passive income streams 6) Build 3-6 mths EF 7) Declutter
  • fruitloop04fruitloop04 Forumite
    294 Posts
    100 Posts Third Anniversary Combo Breaker I've been Money Tipped!
    ✭✭
    Happy new diary!
    01.05.2019 - Re-Mortgage - £142,000 :eek::eek::eek: Total overpaid to date: £15,584.33.
    MFW #52 £9000/£12000
  • killerpeatykillerpeaty Forumite
    2K Posts
    Tenth Anniversary 1,000 Posts Name Dropper
    ✭✭✭
    Hiya, I'm really pleased to see someone with an investment goal because it inspires me to do similar.

    How come magnolia is banned?
  • Hello everybody, thanks for subscribing to the thread!

    killerpeaty, I believe the investment/pension side of stuff is as important as being debt and mortgage free, as by combining mortgage freedom with a modest amount of investments I should be able to not need to work at the end of my career for my basic living costs, hence I can spend that part of my working life doing a civvie job I enjoy that only pays for luxuries. And, an Aston Martin, because I think I've worked hard enough and spent enough Christmases etc away from home to treat myself to some fun!

    Magnolia is banned, as my wife and I have spent the last 3 years living in married quarters, and the 3 or 4 years before that living in student housing, all of which has been a sea of magnolia! We'd rather be in a Laurence Llewelyn Bowen monstrosity than magnolia.
  • LeighofMarLeighofMar Forumite
    459 Posts
    100 Posts Second Anniversary Name Dropper
    ✭✭
    Welcome. I love your goals and will be cheering you on. Aston Martin all the way!! If we don't reward ourselves after being mortgage free, what would be the point?:D
    Though now you've got me thinking what will I reward myself with when we become mortgage free :think:
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance end of July 2021 - $28,550.00
    Hope to be mortgage-free by 2023 
  • Good news! We have got a move in date for the last week of November, and when I took out the mortgage I agreed the payment would come out on the 3rd of each month. Does a move in November mean my first mortgage payment will be 3 December or 3 January?

    Thanks for the advice!

    I also have money to the side for a 'November' mortgage payment as we we're initially hopeful to move in a little earlier, but the legal stuff took longer than expected; so that will be a nice first over payment!
  • A really well balanced and realistic plan and I wish you all the best. I am also planning for retirement, but not going crazy with it. Your basic figure of approx £1000 is also what I have in mind.

    Best of luck with the move. With regards to the mortgage payment, they will write to you shortly to confirm (well mine did). I was with Halifax and they skipped the first month, but of course that meant the next one was a big initial payment.
This discussion has been closed.
Latest MSE News and Guides