Mortgage free by 43

commonsensebrother

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! 

jj_43

next action cancel that extension? 

commonsensebrother

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! 

commonsensebrother

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! 

Thriftmaster1973

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!

savingholmes

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.