Mortgage Free: The final countdown

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  • mark55man
    mark55man Posts: 7,922 Forumite
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    10 years is long enough to get rid, or at least make a huge dent in it, especially if you think about how quickly you are reaching your DFD.  You will sail past and then a strategy of leveraging pensions and good old fashioned OP will do.

    Not sure if I said, but my first step was to remortgage and increase my regular payments to shorten the term - and although that was more admin than it was worth, and although it would have been more flexible to just make OPs if you are looking at a rapid payment plan, then you need a high base payment so that you are not limited by 10% OP.  That said a high base carries some risks 
    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: 27,259 Forumite
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    I am on interest only at 1.05% and unlimited repayments allowed. Would therefore only remortgage to move or extend the term. It's also portable
    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) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    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
  • mark55man
    mark55man Posts: 7,922 Forumite
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    That's a good deal - so as you say just need a MN pot to go alongside
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • mark55man
    mark55man Posts: 7,922 Forumite
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    edited 31 March 2021 at 9:54AM
    Reporting back as of 31/03
    • My start of year OP Mortgage Neutral Pot was £1.7K
    • I have added (/overpaid) an additional £4314 since Jan 2021
    • My normal mortgage payments are £5230 since Jan 2021
    • My pot (including growth/loss) is now £6017
    • My mortgage balance is £98K
    • I am now £92K away from being Mortgage Neutral
    • Current target for Mortgage Neutral is Jul-23.

    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • mark55man
    mark55man Posts: 7,922 Forumite
    Name Dropper First Post First Anniversary
    Reporting back as of end of April
    • My start of year OP Mortgage Neutral Pot was £1.7k
    • I have added (/overpaid) an additional £5.6k since Jan 2021
    In addition I have been juggling around (tax year reasons) with my overall pension pot has allowed me to convert another £1K of growth over plans to this pot, which  means
    • My MN pot (including growth/loss) is now £8.3k
    • My mortgage balance is £97K
    • I am now £89K away from being Mortgage Neutral
    • Current target for Mortgage Neutral is Jun-23.
    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: 27,259 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Good to see you are plans are going well despite various appliances going pop!
    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) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    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
  • mark55man
    mark55man Posts: 7,922 Forumite
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    Thanks SH.  The lovely thing about pensions savings is that it mainly happens before I even get a sniff at the money!.  Also in real life mortgage OP result from concentrated action or saving, in the fund there is no spend only growth (or loss, but mainly growth, whether investment, rebate or contributions).  So a lot of appliances would have to pop before this would be touched :smiley:
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • mark55man
    mark55man Posts: 7,922 Forumite
    Name Dropper First Post First Anniversary
    edited 29 May 2021 at 12:21PM
    Reporting back as of end of May.  Have re-baselined to start April as that suits my spreadsheets, rather than reflecting any major change in money 
    • My 06/04/21 OP Mortgage Neutral Pot was £7.3k
    • I have added an additional £2.7k this tax year
    This means:
    • My MN pot is now £10.0k
    • My mortgage balance is £96.0K (mortgage £1.5k/month)
    • I am now £86.0K away from being Mortgage Neutral
    • Current target for Mortgage Neutral is unchanged at Jun-23
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • mark55man
    mark55man Posts: 7,922 Forumite
    Name Dropper First Post First Anniversary
    Reporting back as of start of July  
    • My 06/04/21 OP Mortgage Neutral Pot was £7.3k
    • I have added an additional £4.5k OPs (Pension Savings)
    • Of this years money £1K is extra employer contributions 
    This means:
    • My Mortgage Balance was £94644  
    • My MN Saving pot is £11792. 
    • I am now £82.8K away from being Mortgage Neutral
    • Current target for Mortgage Neutral is unchanged at Jun-23

    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: 27,259 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Staying on track is good too. Well done.
    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) plus spent £10K+ on home improvements/emergency repairs
    2) Mortgage neutral by June 2030 AVC £8.063/£127,466 AVC target 6.32%
    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
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