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My plan - comments welcome/requested!

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Hi,

I am almost five years into buying my first home, which was financed by a deposit, a five year fixed 35 year mortgage, and a 20% Help to Buy Equity element.

During this time I have been saving and overpaying my mortgage as fast as I can. Recently running the forecast I am aiming to be debt free in just over a year.

My plan is quite aggressive, and has been the result of living as frugally as possible, and working as hard as I can to maximise my income:

August 2017 - house purchased
Student loans £17k (originally £22k)
Mortgage £193k
Help to buy equity £53k
Total debt £263k

March 2022 - today
Student loans £0
Mortgage £95k - maxed out overpayments
Help to buy equity £50k - house price fell 
Total debt £145k

Plan at end of fixed term
I plan to put all my savings except for £10k against the Help to buy, and then the mortgage at the end of the fixed period.

This will leave me with a mortgage of £45k at the end of the fixed period.

I can then pay all available cash against this for around 10 months, and then be debt free.


What is everyone’s view of this plan. I guess the risk is that I’m liquidating all of my investments and will only have £10k cash.

I plan to leave the mortgage on the variable rate and not remortgage to avoid the costs and inflexibility of remortgage. Meaning I will be on a higher 4.5% rate, but I think works out as a saving overall.

Comments

  • powerspowers
    powerspowers Posts: 1,127 Forumite
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    Wow that’s impressive!! 

    To be honest I don’t think the detail matters as you are paying off so quickly and are obviously very motivated to get the mortgage gone. Normally I mention things like pensions and other investments as an alternative/ mixed portfolio but a year is going to make no difference overall. 

    What are your post mortgage plans? 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,000
    MFW 2024 #27 £1,350 /£3,600


  • xepija8686
    xepija8686 Posts: 12 Forumite
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    What are your post mortgage plans? 
    I guess rebuild savings so I am ready for eventual retirement. Or to look after me.
  • Nurse2047
    Nurse2047 Posts: 378 Forumite
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    Incredible. Well done! Review pensions etc when time allows so that is set up for you once your MF 👍😃
    Nurse striving for financial freedom
  • Cornish_mum
    Cornish_mum Posts: 636 Forumite
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    Wow impressive OPs. I think in the short term sounds like a great plan. I would definitely look at an EF and pensions next. Edinburgher has a thread on this board about FIRE/pensions planning that might be a useful read. Also BusyMee old thread on her preparations for retirement might be worth a look.

    Also I suggest that plan a new goal for what to do post mortgage, it could be financial/personal doesn’t matter. 
  • L9XSS
    L9XSS Posts: 438 Forumite
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    Wow that is impressive! 
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