Mortgage free by 43

commonsensebrother
commonsensebrother Posts: 21
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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
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    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!
    £52,365 owing December 2017.Now for the final countdown..1st Jan 2021 - £29,316 -- 1st Feb 2021 - £28,809 -- 1st Mar 2021 - £27,309 -- 1st Apr 2021 - £26,811 -- 1st May 2021 - £26,315 -- 1st Jun 2021 - £25,811 -- 1st Jul 2021 - £24,311 -- 1st Aug 2021 - £23,809 -- 1st Sep 2021 - £22,305 -- 1st Oct 2021 - £21,798 -- 1st Nov 2021 - £20,292 -- 1st Dec 2021 - £19,783 -- 1st Jan 2022 - £18,276 -- 1st Feb 2022 - £17,762 -- 1st Mar 2022 -£17,248 -- 1st Apr 2022 -£15,713 -- 1st May 2022 - £15,202 --1st Jun 2022 - £13,703 -- 1st Jul 2022 - £13,184 -- 1st Aug 2022 - £11,665 -- 1st Sep 2022 - £11,144 -- 1st Oct 2022 - £9,822 -- 1st Nov 2022 - £9,298 -- 1st Dec 2022 - £7,572 --1st Jan 2023 - £7,045 -- 1st Feb 2023 - £5,516 -- 10th Feb 2023 - £5,518 Overpayment Pot @ 10th Feb 23 = £5,518 / Primed = £0 / Actual debt = £0!!!! "Yes, the medicine is harsh, but the patient requires it in order to live, should we withhold the medicine?" Hopefully at zero mortgage debt by December 2022 or very close to it. Determined for freedom! 🍻🥂🍸🍹.
  • savingholmes
    savingholmes Posts: 26,853
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    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 by mid 2030
    1) MFW Nov 21 £201,999 with 237 payments to go - now £184,341 Equity 26.26% (lower post move compensated by EF)
    2) Mortgage neutral by June 2030 AVC £7,613/£127,466 AVC target 5.97%
    3) FI Age 60 annual income target £12,500/30,000 41.66%
    Achievements: CC free since April 22. 1 year EF from Jan 24 & dedicated pot for home improvements
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