2020++ - smiling and waving and looking so fine

alt80

End of March isn’t too far away mate. 

Why pay home mortgage off? If you remo’d it you could put the money to some use in investments that would outperform the tiny interest rate your paying on the res mortgage. 

mark55man

I looked at remortgaging, as could do better than 2%, but with changeover fees the advantage is not that great. 

However, for me the key to neutrality is not overpaying but as you say using cautious blend of cash savings and other assets to get a more favorable return.  I understand the drive some people (many many threads on this in MFW and debates in savings and investments) have to get the mortgage paid off, but at late fifties I feel secure in life and employment and the literal paying off the last penny can wait a bit longer, and I've never stressed about that - at worst we will just downsize early - not a biggie

savingholmes

It's a great plan to have and gives you a decent cushion in between.

mark55man

Thank you SH and alt80

In other  news - food.  Day 7 was Monday (yesterday)

* Day 5 - Breakfast: Pear Porridge - Lunch: Baccon and Egg - Supper: Prawn Nasi Goreng

* Day 6 - Breakfast: Protein Shake - Lunch: Tomato Soup - Supper: Turkey Fajitas

* Day 7 - Breakfast: Protein Shake - Lunch: Ham Salad - Supper: Salmon with Sesame Broccoli and Tomato

Weekday Focus 

• Steps / Keep fit - Self awareness time - I'm just not feeling this at the moment, so I am going to stop beating myself up and will get there when I have finished the diet - which is my priority 
• Improve house environment - (clean/fixed) - normal chores done regularly - a new location has been found for OH charity work, so a bit of time spent organising them for transfer at the weekend- that will make a big difference  
• eat more frogs more often - (save/make) - another spreadsheet day - have reviewed targets for CC2 - and as above end March is new target a 2 months ahead of 0% running out
• Hobby/Personal stuff - not cycling - more board games with friends online and reading a lot of diaries - well done everyone  

ohdearhowdidthathappen

How brilliant to pay off CC1, happy for you
DFD date of March 2021 is great, less than 6 months! I think debt neutral is as good as MF, you COULD be MF, but you're making it work for you.
My mortgage is £340K over 19 years, so MF or DN seems like a distant dream 

mark55man

Thank you - like for all of us, it was just a matter of time and patience.  But yesterday was my day in the sun

alt80

mark55man said:

I looked at remortgaging, as could do better than 2%, but with changeover fees the advantage is not that great. 

However, for me the key to neutrality is not overpaying but as you say using cautious blend of cash savings and other assets to get a more favorable return.  I understand the drive some people (many many threads on this in MFW and debates in savings and investments) have to get the mortgage paid off, but at late fifties I feel secure in life and employment and the literal paying off the last penny can wait a bit longer, and I've never stressed about that - at worst we will just downsize early - not a biggie

Sorry don't think I explained particularly well if you are at a low ltv you could release money taking you back up to just below 60% ltv (keep best rates on your home) and use the additional money to invest alongside the money you would overpay. Appreciate you'd likely do something else but as an example when my home mortgage is down to about 40% ltv, I'll remo back to 60% ltv giving me £120k (current market values) - I can put this into 4 £100k properties at 80% ltv and pay associated fees.

mark55man

I think what you suggest would be a bit too courageous for me - because as I get older my risk tolerance for gearing up and putting my domestic stability into the swings and arrows of outrageous fortune is almost zero.   but also for me my house is not a discretionary asset to  be flipped and exploited.  

you might think that unambitious, I do take risks in my other investments - but that is because I can work my way out of any trouble they cause, but not putting my house as risk.  And if the investments were safe/cautious enough then I don't see making a percent or 2 as adequate return

the only scenario I can see for increasing the mortgage is a need for my kids to have some equity to get onto the ladder at a more affordable LTV - but that is it.

alt80

@mark55man appreciate it does depend on your tolerance for risk (tbf I consider this low risk) and I'd agree the investment needs to have a decent return. Not really sure what else your home is in monetary terms other than a discretionary asset to be flipped and exploited tbf? 

mark55man

@alt80 the saying is "home is where the heart is" - "not home is where the wallet is".