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The Long Road to Freedom

4 replies 181 views
Hi all

Long time lurker - finally taken the plunge and signed up to share with you all my mortgage free goals as my wife is becoming bored of it! A bit about us;

Both early thirties
No children (hope that to change in the next couple of years)
Live on the South Coast
Current Mortgage Debt - £228,200
Current House Value - £440,000 (LTV Ratio 52%)
Both teachers (we therefore haven't been affected financially by the current circumstances and don't have the threat of redundancy like so many)
Combined Income - £4300 a month

We've lived very comfortably for the last few years and decided it was about time our money made more for us then just memories. Our current mortgage term has 27 years remaining and we pay £921 a month (fixed at 2.09% for another 3 years). We have started overpaying a minimum of £500 a month to hopefully reduce this term to 16 years, although I have a personal goal to have it paid off as close to aged 45 as I can and will be throwing any spare money I can towards it. 

I've thought long and hard about whether to overpay the mortgage or pay additional pension, and in the end decided to do both! We already both pay into a teacher pension and have done since qualifying. However, the aim is to retire long before we can take this, hence the quest for financial freedom! I make a £300 a month payment into an additional private pension and a £333 a month payment into a LISA. We're both just about lower rate tax payers, but should either of us move into the 40% bracket i'll be paying more into the SIPP.

The mortgage debt seems so large to tackle, and I know we're lucky to have such a lot of equity, but I want it gone and I want it gone now. No doubt children will come along soon and put all my best laid plans into disarray, but better to start now and adapt if needed, instead of not starting at all. Happy to hear any tips or words of encouragement along the way! Right then, only 16 years to go...

Replies

  • LeighofMarLeighofMar Forumite
    368 posts
    100 Posts Name Dropper First Anniversary
    ✭✭
    Welcome. It sounds like you have all your financial bases covered. Enjoy watching your mortgage balance go down and your pensions go up. It's a nice feeling.
    Mortgage start date Dec 2015 - $64,655.00
    Mortgage end date Dec 2045 - NOT!!!!
    Mortgage balance end of August 2020 - $35,986.55
    Hope to be mortgage-free by 2023 
  • HazelnuttyHazelnutty Forumite
    561 posts
    500 Posts Name Dropper First Anniversary
    ✭✭
    Welcome! It's a very friendly board and we all support each other on our journeys :)
    Choose kind:)
  • longway2golongway2go Forumite
    495 posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    Welcome and good luck. Remember that the sooner you make an OP the bigger impact it will have (depending when interest calculated) so much better to do something now and like you say if you need to adapt because of children so be it. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500 woop!! Sep 2020 144380 :-)

    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
  • Squirrelz92Squirrelz92 Forumite
    121 posts
    100 Posts Photogenic Name Dropper First Anniversary
    Welcome and good luck to you both! Regular OP will have a much greater impact than large one off payments as @longway2go has mentioned above! I am sure you will smash it! Look forward to reading your progress!
    Debt Free 19th March 2019
    Mortgage 3rd Aug 2020 £97750
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