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Mortgage free by 43

commonsensebrother
commonsensebrother Posts: 21 Forumite
Second Anniversary 10 Posts
edited 17 September 2022 at 4:34PM in Mortgage-free wannabe
Been following this forum on and off for a while and finally decided to take the plunge. 

The aim: mortgage free by 43 (currently 37 which gives us about 6 years)

Mortgage: £306000
Length of mortgage: 19 years
Current rate: 1.2% until Aug 2023
Current repayments: £1509 / month
Unlimited overpayments allowed 

Savings: approx £110000 - tentatively planned for extension and new kitchen.

Looking to overpay by £2500-3000 per month. Appreciate we’re in a lucky position to be able to do this!

This months overpayment: £2351 done! 

Let’s do this! 

Comments

  • jj_43
    jj_43 Posts: 336 Forumite
    100 Posts First Anniversary Name Dropper
    next action cancel that extension? 
  • jj_43 said:
    next action cancel that extension? 
    Quite possible. I’m torn. Want to make the house nicer to live in and more suitable (E.g having a home office rather than cramming into spare bedroom) but at the same time that would be a huge chunk of the mortgage! 
  • Taken the hit of a 6.5k ERC to remortgage for 5 years at 3.6%. Painful but probably worth it if rates climb another 1% or more. 

    Not the best start to the mortgage free journey! 
  • With what's going on now I would just solely concentrate on ploughing excess funds into the mortgage - you can do the home improvements/ extensions etc when your finished.

    I feel so thankful that I took the path that I did, I also feel for so many people who despite their hard work & sheer graft, have now been well and truly shafted with what appears to be some kind of government induced "experiment" - which has gone horribly wrong!
    Became mortgage free 1st March 2023
  • savingholmes
    savingholmes Posts: 29,087 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I think whether the extension is a good idea or not depends on how well the house is working for you now. 

    It's incredible to have such a lovely lump sum. Well done.

    At the same time - I get the attraction of owing less on the mortgage.


    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £171.8K Equity 36.37%
    2) £2.6K Net savings after CCs 10/10/25
    3) Mortgage neutral by 06/30 (AVC £27.9K + Lump Sums DB £4.6K + (25% of SIPP 1.25K) = 34/£127.5K target 26.6% 10/10/25
    (If took bigger lump sum = 60.35K or 47.6%)
    4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise) (If bigger lump sum £15.8/30K 52.67%)
    5) SIPP £5K updated 10/10/25
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