Best Route to be Mortgage Free in 4(ish) years. Give me your thoughts

jpbruce1981

First time poster here, but a long time user of MSE.
Looking for some thoughts on the best way to achieve the goal of being Mortgage free by the time my fixed deal runs out, in 4y3m.

My current scenario is:
Took out a 5 year fix for £124k @1.45% last year. 11 Year Term. 10y3m remaining.
Monthly payment is £1015, but overpaying by £235 a month. £1250/month in total.

The 1.45% now looks like the deal of the century.

So should I:

• Overpay as much as possible?

• Save as much from our income as possible in other ways?

• Borrow more at the 1.45% and put it in a fixed saver at 2.75%, and try some kind of arbitrage? Anyone done anything like this? or am I barking up the wrong tree?
• Any other suggestions?

Thanks in advance.
JPB

Elchie232

That seems like quite a challenge!  How much could you afford to over pay each month?
You would need to overpay about £1750, so £2765 total mortgage payment per month to be mortgage free before the term ends. Without obviously knowing your financial situation that seems... quite difficult.  

jpbruce1981

Elchie232 said:

That seems like quite a challenge!  How much could you afford to over pay each month?
You would need to overpay about £1750, so £2765 total mortgage payment per month to be mortgage free before the term ends. Without obviously knowing your financial situation that seems... quite difficult.  

Sorry, I should have added a bit more context.
We are currently managing to save around £1,000 a month, and mostly thanks to continuing working through Covid, and being frugal, have managed to amass 50k in premium bonds, between 2 of us. That 1k/month could well come down a bit due to the inflation effect on bills.
Would be happy to cash in some of that, at the end of the fixed deal, but ideally not all of it.

Cornish_mum

Hi we are in similar situation (5years at .94%). I am thinking of organising our cash savings to maximise interest and add to them rather than overpay (haven’t overpaid for a while). MrCM is very cautious so he prefers cash to investments. My half of our savings is going straight into pension/S&S ISA. Need to find some good options, so will be keeping an eye on this thread CM.