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Mortgage Free: The final countdown

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  • mark55man
    mark55man Posts: 8,196 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • savingholmes
    savingholmes Posts: 28,931 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £174.8K Equity 32.77%
    2) £3K Net savings after CCs 6/7/25
    3) Mortgage neutral by 06/30 (AVC £22.5K + Lump Sums DB £4.6K + (25% of SIPP 1.1K) = 28.2/£127.5K target 22;12% updated 6/7
    4) FI Age 60 income target £16.5/30K 55.1%
    5) SIPP £4.6K updated 6/7/25
  • KajiKita
    KajiKita Posts: 7,361 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    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
    As at 15.06.25:
    - When bought house £315,995 mortgage debt and end date at start = October 2039 - now £234,698
    - OPs to mortgage = £11,338 Interest saved £5225 to date
    Fixed rate 3.85% ends January 2030

    Read 33 books of target 52 in 2025, as @ 6th July
    Produce tracker: £201 of £300 in 2025

    Watch your thoughts, they become your words.
    Watch your words, they become your actions. 
    Watch your actions, they become your reality. 
  • mark55man
    mark55man Posts: 8,196 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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!! 
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • KajiKita
    KajiKita Posts: 7,361 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    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
    As at 15.06.25:
    - When bought house £315,995 mortgage debt and end date at start = October 2039 - now £234,698
    - OPs to mortgage = £11,338 Interest saved £5225 to date
    Fixed rate 3.85% ends January 2030

    Read 33 books of target 52 in 2025, as @ 6th July
    Produce tracker: £201 of £300 in 2025

    Watch your thoughts, they become your words.
    Watch your words, they become your actions. 
    Watch your actions, they become your reality. 
  • Humboldt
    Humboldt Posts: 395 Forumite
    100 Posts First Anniversary Name Dropper
    @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
    savingholmes Posts: 28,931 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £174.8K Equity 32.77%
    2) £3K Net savings after CCs 6/7/25
    3) Mortgage neutral by 06/30 (AVC £22.5K + Lump Sums DB £4.6K + (25% of SIPP 1.1K) = 28.2/£127.5K target 22;12% updated 6/7
    4) FI Age 60 income target £16.5/30K 55.1%
    5) SIPP £4.6K updated 6/7/25
  • mark55man
    mark55man Posts: 8,196 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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 
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • savingholmes
    savingholmes Posts: 28,931 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Happy New Year. 

    I think it is a good call to maximise your interest. 
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £174.8K Equity 32.77%
    2) £3K Net savings after CCs 6/7/25
    3) Mortgage neutral by 06/30 (AVC £22.5K + Lump Sums DB £4.6K + (25% of SIPP 1.1K) = 28.2/£127.5K target 22;12% updated 6/7
    4) FI Age 60 income target £16.5/30K 55.1%
    5) SIPP £4.6K updated 6/7/25
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