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Journey to be Mortgage Nuetral and Mortgage Free

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Journey to be Mortgage Nuetral and Mortgage Free

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Ever since we got our mortgage back in January 2011 we have longed to get rid of it. This forum has been a source of great inspiration in helping us along the way.

Who are we? Well there is my wife (37), myself (38) and our two girls 6 and 4. We are both in secure pensionable jobs but my wife is gone part time in the last year. Childcare costs of 255 a week (pre Coronavirus) and our mortgage is 935 a month are our main expenses. We have an after tax income of 57,000.

We built our own house (forever home) in 2011 on a site gifted from family and took out a mortgage of 164,500 borrowed over 25 years until 2036. We didn't borrow for some internals and the lawn but did those over the last 9 years. The current balance on our mortgage is now 105,000. We have close to 28,000 in cash savings in bank accounts. The recent crisis has meant working from home with no diesel, childcare or other routine expenses and this has really helped our savings.

We have made a number of overpayments over the last number of years. Debt of any kind doesn't sit well with me or my wife. Every time we got an interest rate reduction or a payrise we tried to use it to overpay the mortgage. This forum has been hugely influential along with Dr Karl's mortgage calculator. We have learned so much from this forum and want to thank you all for simple little things like knowing how overpayments affect the lifetime of the mortgage to learning about the term mortgage nuetral. Mortgage nuetral has been a big driver for us over the last few years. Whilst we can't overpay our mortgage due to been locked in a fixed rate it has guided us to saving and building up a lump sum to hit the mortgage when we can overpay. We have learned about rounding up savings each week. We have used Tilly Tidy and doing up a wall of bricks and as each 1k is paid off we cross off a brick.
So why post now? A few reasons, we have made a lot of sacrifices to get to this point no foreign holidays, no tv sports packages, shopping at budget stores, packed lunches to work and no flash new cars just to mention a few. Last year after a battle with illness my wife lost her dad, it was a tough year for all the family. He was a man who was financially prudent and resulting from his passing we are due to receive an inheritance of 55,000. We know he would have wanted us to use it towards the mortgage and in turn give our children a better life. This inheritance plus our savings puts up in a good position to clear our mortgage within the next two to three years. We are in a fixed rate until February 2023 at the moment and would have to pay a break fee if 1,200 to get out of it. It is easy to get side tracked and splurge on a brand new car or other things but am hoping this diary will be a reminder to keep us on track.

Being mortgage free would mean so much to us, it would give us options to work less hours, provide a good quality of life and an education for our girls and have the possibility to retire early. I'm a big follower of the FIRE movement. For the moment in the here and now we are just glad to have our jobs, our house and each other and the knowledge that the sacrifices we are now making will hopefully be worth it in the end. 


  • 2bmortgagefree2bmortgagefree Forumite
    2 posts
    First Post
    That month wasn't long passing. Our normal monthly mortgage payment has gone out and our capital balance has reduced by about 640 quid. 
    We got a bit of a set back during the month when our oil tank leaked, thankfully not much oil leaked but we had to get a new tank which cost nearly 800 quid.
    Hoping for no new shocks like that again.
  • family355family355 Forumite
    12 posts
    10 Posts
    Hi, Must be a great feeing to be almost mortgage free-Congratulations!! 🙂
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