Forever hopeful MFW 2026

hi all, had to set up as a new user as old log in won’t work 😬 
can I ask am I better OP each month or saving into a S&S ISA then OP every year or so?

Nurse striving for financial freedom
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Comments

  • savingholmes
    savingholmes Posts: 26,851
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    Unfortunately none of us have a crystal ball so hard to know. It's safer to OP each month but that may not be the right thing for you. Depending on how far you are from retirement - there may even be an argument for investing some of your money into a pension and then possibly using a lump sum from that to pay towards your mortgage. You need to give more info on your circumstances to get a decent response. Income, outgoings, rough age, life circumstances, pension situation, size of mortgage versus income LTV. You could map out different options on a spreadsheet showing the best case scenario of x% gain versus the worst of you losing £ in a S&S isa.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
  • Nurse2047
    Nurse2047 Posts: 374
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    edited 21 December 2021 at 10:51AM
    Hi all, so since this post saved my emergency fund and now aiming to OP 10% in 2022. Still aiming for 2026 target as interest rate quite high at 2.79% and fixed until end of 2026.. sounded good at the time when Brexit was announced and fixed for 10 years 🤨

    Will post January figure on 1:1:22 however 10% will be approx £650 a month 🤭 working extra shifts at mo at weekends trying to support this goal as in 2026 will be 47 and then can concentrate more on pension payments. Also my goal of possibly retiring earlier than SPA as a nurse and enjoy caravan holidays by the seaside more in Norfolk and Suffolk. 

    Living in a 3 bed terrace in the south east- have considered moving many times as one bathroom not fun with two nearly teenagers! However think will stay put as if we did move to a 4 bed in same town we would be adding at least another 200k to the mortgage... 

    I have set up my overpayments to be made allready with Santander and now excited for the next 5 years!! 

    House current value approx £294,000
    Outstanding Dec 2020- £82,710.00
    Current LTV 28%
    Years left to pay- 17 yrs 1 month 😬
    Current end date - 3/10/2043
    MFW journey started with ad hoc OPs January 2017 - Balance - £114,703

    Emergency fund- £12,000 ( in premium bonds and S&S ISA) continuing to pay in £50 monthly to PBs 
    Debt all paid off in 2020 😁

    If anyone has any tips of pearls of wisdom please share as I know this is going to be a hard task.  
    Nurse striving for financial freedom
  • Sistergold
    Sistergold Posts: 2,006
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    Hello MFW2026, you are really doing well with LTV of 28%! Paying your mortgage off at age 47 will be fantastic. Caravan holidays once mortgage free sound epic! 
    You seem to have a very good plan there and I am sure you will achieve your goals as you are already working extra to get the OPs going! 
    Will be cheering you on! 
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
  • Thankyou, I'm being positive and hoping i can do it but will be a rocky road for the next 5 years...
    Nurse striving for financial freedom
  • L9XSS
    L9XSS Posts: 438
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    Hey, great focus and great attitude! Wow, just envisage being MF at 47, that’s some achievement. Keep up the great work and it will happen!
  • Sistergold
    Sistergold Posts: 2,006
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    L9XSS said:
    Hey, great focus and great attitude! Wow, just envisage being MF at 47, that’s some achievement. Keep up the great work and it will happen!
    MF @47 will be a great achievement indeed! I only got my mortgage at 47 exactly! 
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
  • I got my mortgage when I was 21, stupidly though added to it then moved. 
    Nurse striving for financial freedom
  • Sistergold
    Sistergold Posts: 2,006
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    MFW2026 said:
    I got my mortgage when I was 21, stupidly though added to it then moved. 
    At 21 you are not likely to buy a forever home so it’s not surprising you would have needed to move. Also income would have gone up so upgrading would have made sense. Even with that you have managed to be able to plan to pay off by 47 which will be a great achievement. 

    I see you also debated buying a bigger house and that would mean increasing your mortgage because of the children? Either way it’s good to just overpay for now! If ever you are tempted to move you will have a large deposit! If you can avoid moving then you are done! No more mortgage payments! 

    I had to start over at 47 due to marriage breakup, as had to sell everything. On top of that I did get the maximum I could get which on hindsight might not have the best. With covid though it was good I maxed out as there were no compromises. Also trying to pay my mortgage down to a smaller monthly payment. So far so good no regrets. 
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
  • Well done @Sistergold sounds like you have been through a lot however you are looking to the future and its looking bright. You are making great progress.
    Nurse striving for financial freedom
  • Nurse2047
    Nurse2047 Posts: 374
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    I have a goal of £8000 overpayments this year - going to be tough but determined to make this happen. 
    As my mortgage balance will decrease with the OPs and 10% max OPs annually how can you adjust this on a mortgage calculator? Calculator doing it for payments for this year but will be less next year due to balance. I’m no good at Excel etc so can’t figure out how to do it. 

    Thankyou and good luck everyone in your goals for 2022 
    Nurse striving for financial freedom
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