Started to overpay the mortgage indirectly.

TimSynths
TimSynths Posts: 603
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edited 23 November 2020 at 3:20PM in Mortgage-free wannabe
I've done some number crunching and I have £46k left on my Santander mortgage and is fixed @ 2.69% to May 2025 (7 year fix I started in 2018 as I like stability) but has 7 years and 8 months until fully repaid. I had a small second mortgage which I paid off early this year and decided to contribute more to the now one mortgage balance I have left rather than simply pocketing the freed up money each month. However, rather than simply overpay Santander £100 every month I have opened a stocks and shares ISA into which I pay this £100 as I think/happy to take a punt/gamble/reckless with money take your pick, that the worldwide equities that I have chosen to invest in will outperform the 2.69% my mortgage is costing me.

So the target I have set myself is that come May 2025 when the product switches to the SVR I want to be in a position (if I so choose) to be able to settle the outstanding balance 2 and bit years early (need to stop looking @ Porsche 911's on Autotrader)- also at this point there would be no penalty for doing so.

I have added some savings to the ISA and the balance is about £2.5k at the moment with an additional £100 by DD going towards it every month, I will also from time to time make some lump sum deposits to it, I should be able to double the planned £1200 that it will receive in regular funding every year when some other investments mature every January.

The thought of being mortgage free by 2025 is exciting, but lets be honest there isn't really a lot also going on at the moment to get that excited about! (I need to get out more).

Regards, Tim.

Comments

  • tacpot12
    tacpot12 Posts: 7,834
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    Great! Good luck with your savings.

    I think the Global Stock Markets will continue to recover as businesses work through the effects of the pandemic; I expect your investments will do well. It is a great feeling to be mortgage free. 

    Once you had paid the mortgage off, you should celebrate and then put most of what you were paying on the mortgage to further increase your financial security. You should also spend a little as a reward for your success.  
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • tacpot12 said:
    Great! Good luck with your savings.

    I think the Global Stock Markets will continue to recover as businesses work through the effects of the pandemic; I expect your investments will do well. It is a great feeling to be mortgage free. 

    Once you had paid the mortgage off, you should celebrate and then put most of what you were paying on the mortgage to further increase your financial security. You should also spend a little as a reward for your success.  
    Quite right! I will have another £550 to play with every month, nice to potentially have some options.
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