Mortgage free in around five years (or close to it)

isadreamalie
isadreamalie Forumite Posts: 45
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edited 1 May 2022 at 12:14AM in Mortgage-free wannabe
I'm currently 32. Aiming to be mortgage free or close to by the time I'm 40. Certainly looks doable in the next six years if not sooner.

However my five year fixed comes to an end in November and I'm aware rates have gone up. Will probably stick with my bank to avoid extra remortgage costs and hopefully still get a fair deal...

My debt is just over £125k
My house was £350k bought with a £120k deposit over five years ago with £230k borrowed so I've cleared over £100k in just over five years (often throw 1k or more at it a month and maxed out my allowance last year) whilst my monthly payments on my current 1.99% interest have reduced from 950pcm to a little over 600pcm. Compares well with renting...  In 2015 I was paying 650pcm in rent !

I used overpayment to reduce monthly payments but will probably continue with the same term for the next fixed deal and continue to overpay but eventually overpay to reduce the term or be in a position to pay it off outside the fixed term

Comments

  • powerspowers
    powerspowers Forumite Posts: 1,069
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    Well done on your progress so far, £100k in 5 years is amazing!!
    A few things to bear in mind if you haven’t already- reducing the payment means you are using more of your OP allowance at the same time ad it decreases. You might have to stay with the same lender if you owe less than the minimum that a lender will lend (I’ve heard £30k). 
    Good luck with the rest of your mortgage slaying 🐉  

    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,070/ £2,023 target


  • isadreamalie
    isadreamalie Forumite Posts: 45
    Seventh Anniversary 10 Posts
    Forumite
    Well done on your progress so far, £100k in 5 years is amazing!!
    A few things to bear in mind if you haven’t already- reducing the payment means you are using more of your OP allowance at the same time ad it decreases. You might have to stay with the same lender if you owe less than the minimum that a lender will lend (I’ve heard £30k). 
    Good luck with the rest of your mortgage slaying 🐉  

    So perhaps a two year fixed mortgage is better than a 5 as the 10% allowance for overpaying is pretty poor once thr debt is under 100k



  • savingholmes
    savingholmes Forumite Posts: 25,892
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Good luck on your journey - £100K in 5 years is impressive!
    Moving goals: Anticipated costs £8K (excluding new furniture or any post move renovations)
    1) Upfront house move costs Paid £1034/£2,609 (£448 for legal, £586 for mortgage, £76 post redirection, £1,500 removals)
    2) Balance of likely house move costs Paid £0/£5,372 (£1,772 legal, £3,600 land tax from equity)
    Longer term financial goals
    3) £6,519/£10,000 Emergency/Freedom/Home/Moving Fund 65.19%
    4) MFW Nov 21 £201,999 with 264 240 payments to go - now £186,368 Equity 38%
    5) Mortgage neutral by June 2030 £6,289/£127,466 AVC target 4.93%
    6) FI Age 60 annual income target £12,500/30,000 41.66%
    7) CC Debt free April 22 (now stay that way!!)
  • isadreamalie
    isadreamalie Forumite Posts: 45
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    edited 7 May 2022 at 6:14AM
    Good luck on your journey - £100K in 5 years is impressive!
    Thanks 😊 

    Helps having no partner no student debt no kids an 120k deposit on my house and a 60k job...

    I made an initial 10k overpayment early on as I had some savings left I could have added to the deposit. Reduced my monthly payment from 950 to almost 900 and that's when the overpayment addiction started!

  • powerspowers
    powerspowers Forumite Posts: 1,069
    1,000 Posts Second Anniversary Name Dropper
    Forumite
    Well done on your progress so far, £100k in 5 years is amazing!!
    A few things to bear in mind if you haven’t already- reducing the payment means you are using more of your OP allowance at the same time ad it decreases. You might have to stay with the same lender if you owe less than the minimum that a lender will lend (I’ve heard £30k). 
    Good luck with the rest of your mortgage slaying 🐉  

    So perhaps a two year fixed mortgage is better than a 5 as the 10% allowance for overpaying is pretty poor once thr debt is under 100k



    I’ve just gone for a 5 year fix with 50% OP limit to get best of both worlds. We owe similar but paying off slightly slower due to aforementioned kids and student loans! 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,070/ £2,023 target


  • savingholmes
    savingholmes Forumite Posts: 25,892
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Good luck on your journey - £100K in 5 years is impressive!
    Thanks 😊 

    Helps having no partner no student debt no kids an 120k deposit on my house and a 60k job...

    I made an initial 10k overpayment early on as I had some savings left I could have added to the deposit. Reduced my monthly payment from 950 to almost 900 and that's when the overpayment addiction started!

    Still impressive.
    Moving goals: Anticipated costs £8K (excluding new furniture or any post move renovations)
    1) Upfront house move costs Paid £1034/£2,609 (£448 for legal, £586 for mortgage, £76 post redirection, £1,500 removals)
    2) Balance of likely house move costs Paid £0/£5,372 (£1,772 legal, £3,600 land tax from equity)
    Longer term financial goals
    3) £6,519/£10,000 Emergency/Freedom/Home/Moving Fund 65.19%
    4) MFW Nov 21 £201,999 with 264 240 payments to go - now £186,368 Equity 38%
    5) Mortgage neutral by June 2030 £6,289/£127,466 AVC target 4.93%
    6) FI Age 60 annual income target £12,500/30,000 41.66%
    7) CC Debt free April 22 (now stay that way!!)
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