Mortgage freedom - strategy sense check pls

Saint84 Posts: 87 Forumite
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edited 11 October 2022 at 8:52AM in Mortgage-free wannabe
Hi all

hope everyone is well. Great forum here.

I wanted to post my mortgage free strategy and if it makes sense.


I currently about to enter in a 10-year fixed on residential with the hope of overpaying and paying it off within 12 years say.

I also have a BTL on interest only bought in 2020. My plan is to keep this on interest only and sell it (and use profits hopefully) to help clear down residential. This will bring down the 12 years above target. The interest only is on a fixed until 2025

 My question is therefore this: should I be thinking about paying some capital on the BTL in the meantime?

I appreciate you need to know load more information about me but let’s assume I have some spare cash to make capital overpayment on BTL but wanted a sanity check on my approach above - and whether it’s worth engaging a financial advisor on this.


  • Zerforax
    Zerforax Posts: 353 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Have you checked what you are allowed to overpay on the 10 year fixed deal? Often there is a 10% cap per year.
  • Saint84
    Saint84 Posts: 87 Forumite
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    Yeah there is a 10 percent limit.

    it’s a 19 year term, so I have enough headroom that I won’t be in danger of overpaying (at least in in early years)
    I am thinking I overpay more in the earlier years and then it wind it down over the ten year term to not breach the overpay limit. Then once the ten year term ends, I pay off lump sum or remortgage for 2 years if required.

    does that sound sensible?

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