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Help me find the incentive!

So, MSE has been along with me on my financial journey for some time,  from Debt Free Wannabe, to saving a deposit, to buying a house.. and finally to remortgage (ditching my fix) and finally where I am now, with a £250,000 mortgage at a low (1.5%) interest rate. Ok. That's the background..

However, for the first time I'm now struggling to find the incentive to pay this off. It's just sooo much, over sooo many months. With a low interest rate, It's not like overpaying has the big effect on the overall amount of interest you pay and a drastic shortening of the term.

So I am just left staring at this big debt pile.

To add to that, I know that inflation will mean that in a few years that debt pile will appear much smaller (assuming wage growth happens too).. So why push myself now to pay? (and reduce my lifestyle now, whilst i can enjoy it and make memories with the kids)

I don't seem to see the incentive  of throwing what I have at the mortgage. Is anyone else in this position? Am I missing something?

Just feels a bit odd, that after so many years, and finally being in the best financial position in my life, It's only now that I'm wondering what's the point of overpaying / clearing that massive mortgage debt? At least now, rather that later.  What drives you to do it? 


  • South_coast
    South_coast Posts: 5,013 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Beaker99 said:
    Is anyone else in this position?
    Yes, 99.9% of mortgage holders!

    Even at 1.5%, you're still paying over £300 per month in interest, which to me sounds like a lot of money to pay just for the privilege of having a loan. Don't get me wrong, you've got a great rate, you've just got a lot of mortgage debt as well. If you had made some inroads into reducing the balance, then that £300 could be put to better use in reducing the balance further - or you could recalculate your monthly payment to free up more money for fun stuff.

    I looked at my mortgage as being a 25-year cost rather than a monthly one. Overpaying might not have made much of a difference on a monthly basis, but it made a huge difference to the total I paid out - I saved tens of thousands in interest and 20 years of my life. Sometimes it helps to zoom out and see the bigger picture. 

    No-one is going to force you to overpay though, you have to want it. 
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed

    Finally earning interest instead of paying it!!!
  • LadyGnome
    My mortgage runs up to my 65th birthday but I don't want to be obliged to work until then.  So I am overpaying so I can make choices in a few years (I'm 52 now).  Perhaps I'll go part time at 58 or stop working at 62 who knows.  The only way I can do that is to shift the mortgage.

    I found mini goals helped me in the early stages like over pay 1% of the total.  Remember even small overpayments add up over the life of the mortgage so you can find a balance between doing things you want to do and overpaying.
    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
    MFiT-6 #28 £21,772 /£75000
  • savingholmes
    savingholmes Posts: 27,715 Forumite
    Name Dropper First Anniversary Photogenic First Post
    The over payment calculator can help you see what you save by over paying.

    You need to ensure your pension is more than adequate too plus preferably a decent emergency fund.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 235 payments to go - now £182,428 Equity 27.02%
    2) Spend on handyman & external building works & new patio door £13.45K
    3) CC £7.4K on 0% spends card but offset by £34.25K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.1K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
    6) SIPP £4.1K
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