35 yr old, MF by 50 & Retire at 55

Najmul Posts: 8
First Anniversary Combo Breaker
edited 18 February 2021 at 12:07AM in Mortgage-free wannabe
I've always read and admired peoples' stories on here in working towards  becoming mortgage free. I'm on my own journey and wish to share with you and hopefully pick up some tips and advice along the way.

As the title says it really, I'm 35 years old wishing to be mortgage free by 50 and not feel under pressure to continue working beyond 55 if I don't want to.

I come from a relatively poor family. My entire childhood was dependent on parents being on state benefits. Fortunately, I'm in a stable career earning £40k and my wife works part time earning £15k. We have two kids aged 4 and 2 

My wife and I bought our 1st property 4 years ago for £210k, borrowing £180k. Initially was on 2 year fixed, 1.56%, 28 year term paying £660 pm. Made no overpayments as needed every penny to fund approx £75k (mixture of savings and loans) renovation over the past 4 years. This has already become our forever home.

I then moved to a 5 year fixed, 1.99%, 23 year term paying around £750 p/m. 2 years in and COVID kicked in. I took advantage of the mortgage holiday for 3 months to help fund a garden renovation. I knew the consequences of the mortgage holiday and wanted to do something about it.

Last year I finally cleared my student loans and caught the debt-free bug! I do have approx £10k of loans and credit card bills which should be clear in the next few years 

So in September 2020, I borrowed £10k from family to pay a lump sum off the mortgage. I also increased the monthly payment to effectively over pay by £50 every month. Mortgage balance is currently £154k.

We're now saving £500 every month to pay back the £10k. So in 20 months, we will pay back the £10k to family but in effect borrow it straight back and pay another lump sum off the mortgage. We plan to do this every 2 years and ensure we keep within the 10% overpayment limit. Eventually we should be able to pay the lump sum every year when the mortgage balance comes down to around £60k.

I'm about to start yr 3 of the 5yr fixed. When I remortgage in 3 yrs time, the LTV should be under 60% as the house is already valued £280k+. So looking at potential significant reduction in rates in 3 years time - 5yr fixed for 60% LTV is currently typically 1.4%. So if I've done my calculations right, with lump sums and smaller monthly overpayments, I should be able to clear the mortgage in the next 13 years - before I turn 50.

So what do you think about my plan? Too pie in the sky or not ambitious enough?!


  • caeler
    caeler Posts: 2,605
    Mortgage-free Glee! Photogenic Name Dropper First Post
    Aim high! Good luck with your journey. 
  • Welcome and good luck. As long as you have a pot for holidays, spending money, breakdowns, emergency fund and other outgoings like car you should be golden.

    As for ambitious only you know that, you can be too ambitious and get irritated when something goes wrong and you have to pay less towards the overpayment than you anticipated.

    You don't mention pension's, and saving for the kid's (if you want to do that). 
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