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Ease up or plough on?

Just over 3 years ago I was in debt and struggling. I owed around £23k (not including mortgage) which in comparison to my earnings was really high.
I have now cleared all debts and only have a mortgage left. I'm 63 now so will reach retirement age in a couple of years but my mortgage runs till I'm 70.
Now all other debts are cleared I am throwing EVERYTHING at the mortgage (£39k outstanding- On a variable rate which has gone up 4 times in the last 3 months and now sits at 4.24%). I have no savings or rainy day fund as every spare penny has gone to clearing the debt but I'm now starting to worry about not having any savings in the event of an emergency. Ideally I want the mortgage cleared ASAP (I don't want to work full time till I'm 70) - Should I keep overpaying with everything I have or is it now time to try and save a bit?


  • edinburgher
    edinburgher Posts: 13,471 Forumite
    Name Dropper First Anniversary First Post
    How is your pension provision and is there any particular reason you're staying on the variable rate when a fix would be cheaper?
  • LadyGnome
    LadyGnome Posts: 801 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    You need savings otherwise if a problem hits you will end up back into debt.  Can you get a fixed rate mortgage so you can plan on a known monthly figure for a year or two?  Then you could build up an RDF of a certain amount whilst making token overpayments on the mortgage e.g. £10pm and once you have a bit of a fund saved up start to increase the amount of OP and reduce the amount of saving.

    Think about your monthly outgoings e.g. how much would you need for 1 month bare bones survival?  Do you have any big items that will likely need replacing in the next couple of years e.g. car, fridge, washing machine?

    Well done on the debt clearance - build yourself a safety net so you won't ever go back there.
    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
  • dimbo61
    dimbo61 Posts: 13,726 Forumite
    Name Dropper Photogenic First Anniversary First Post
    For the last 3 years you have been clearing expensive debt, paying the mortgage and surviving !
    Well done 👍 
    Now a little thing like £39,000 should be No problem with someone with your skills and mindset.
    Review your options RE pensions and making sure you can receive the Max state pension possible while also chipping away at you debt.
    I wonder what Interest rate you have been paying

  • loveginhatetonic
    Thanks for all the responses - much appreciated!

    I'm back at the spreadsheet, testing out all options (including a possible lump sum from my work pension that I hadn't considered (thanks edinburgher)). 

    I t

  • savingholmes
    savingholmes Posts: 27,617 Forumite
    Name Dropper First Anniversary Photogenic First Post
    Good luck with finding a workable plan. 
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £5.4K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
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