Mortgage Free: The final countdown

mark55man

Thank you - the trouble with offset OP funds and all my shenanigans is its a bit notional, so not quite as hardcore as actually paying it to the building society so its done and dusted and off your tab for good.  That said notional pots gave me flexibility that OP would not. It helps that I'm so far down repaying that its not a big deal either way and interest rates have been favourable

savingholmes

I do love your whole sabbatical idea. I wish that was a realistic option where I am. 

Glad you have time to restock your finances before you finish for good too.

KajiKita

Hi Mark,

I have read your diary and this thread and I have really enjoyed your approach and how you adapt for changing circumstances. Hoping your sabbatical is still going well and look forward to reading more 😊

KK

mark55man

Thank you @KajiKita

Sabbatical is ominously close to ending, but has been fine. Ironically after all my scheming and planning (and lets not forget spreadsheeting) I think the MF is going to be achieved when we sell my FIL's flat our share of which will come down to OH in about 6-9 months.  There will be some left over which she will probably split half between some home and lifestyle improvements and half to trickle down to the next generation.

Until then I will just keep on paying the Mortgage off and trying to keep an eye on budgets - I often find I end up worse after a windfall, as even after all these MSE years I am prone to spending some £'s twice!! 

KajiKita

That’s ‘good’ news about the windfall, though the reason behind it is a sad one. 

I find I’m the same about the spending of such dollops of cash when they land ….

I try to be fierce with myself and immediately divvy it up three ways:
- 1/3rd to OP
- 1/3rd to savings 
- 1/3rd to play and living in the now. 

Once that’s done, the damage is a LITTLE more contained! 😉 Obviously your options would be different with no mortgage to OP, but I’m sure you get the principle - define what you get to ‘indulge’ yourself with and tuck the rest away, somewhere slightly out of immediate reach 😊

KK

Humboldt

@mark55man fabulous to see MF is on the horizon, although I acknowledge the sad circumstances that have made it possible. I also concur with @KajiKita's method of dividing an unexpected windfall. Life is short, and whilst we need direction, we also need balance.

savingholmes

I like the balance of KK's approach too. 

Good you are within touching distance of mortgage free - but with you on the risk of spending the same £ multiple times.

mark55man

so as of end of year my mortgage balance is £35K with just over 24 months to go on repayments.  2.1% until the end of 2025 then SVR.  I will hold fire repaying in full until the end of the year to avoid penalties. 

Also, I will not make intermediate OPs as even now the interest on quick access is more than interest cost.  possibly will stick some money in an ISA to cover 2026 payments but obviously the interest rate difference will narrow so I might decide just to be done with it

Just keeping an eye on it all for now while I rebalance everything following return to work and as we navigate the legalities of inheritance  

Happy holidays and a prosperous new year to you all 

savingholmes

Happy New Year. 

I think it is a good call to maximise your interest. 

mark55man

Just been steadily paying down this year - only £25K to go now. will be <£20K at the end of the year which is when I go onto Standard Variable Rate.

That amount is covered by savings currently earning more than my fixed rate so will keep paying down slowly.  I'm going part time at work soon so my pay will be reduced by an amount about the same size as my mortgage payment so will use some of the savings to make that payment instead of the lost pay.  In December if the rate I am charged is too high I will just pay the balance off