Just over one week's time *Mortgage Free*

Well, I've been waiting 11 years & 5 months to write this post but in just over a weeks time I will no longer have a mortgage. Feel super lucky and privileged to be in this position at a relatively early age (40). Whilst only on a modest place 2 bedroom terrace, it gives an immense sense of security more so in the current climate.

My strategy wasn't overpayments, infect I never made an overpayment. I've been very lucky with work, gaining successive promotions and the resulting pay increases for the last 5 years I have been able to save 50% of my net pay. I had to buy a new car out of the money in 2019 (£10k) but got back on track and as of 9th Dec my current 5yr fix expires and looking to clear the balance ASAP. My payments on the SVR go up by £80 per month (30% increase). Only 12 months ago I was planning to re-mortgage for 2-5 years at a low rate and stick the whole lot savings back into the highest interest savings (1 - 1.5%) at the time.

It only became a reality in late 2017 when I fixed for 5 years, as to that point in the previous 6 years the capita balance barely reduced. I saw the monthly savings increase and when I had the first 10k, I worked out the remaining months (48) and realised that if I could maintain that level of savings for the next 4 years I could pay off the remaining balance off by the end of the fix (Dec 22). I had done better than expected as I managed to buy a newish car, also got a Lifetime ISA before I hit 40 and have put 8k (+ the 2k the government give ty) in that and got 10k in an emergency fund and increased my pension contributions slightly (not great levels).

I still have commitments, I have a pre-teen child and pay child support payments (and will never stop paying in one way or another, I love it  and have a great relationship with my child) but the next 12-18 months is get my savings back to a comfortable level. The work is getting more difficult each day, and may not be able to earn the wage (not quite £50k) I can ever again as I think I've lost the drive a bit but will see how it goes. I can support myself out of work now for up to 12 months worst case and also have re-negotiated my life cover with income protection should the worst happen.

I don't like to be come across as a brag or anything, It just an update that I've been looking forward to writing and put my mark on the hall of fame! I'm sure all of us have had some help over the years in some way or other. The house was all my work though my parents paid for a £5k kitchen & boiler refurb in 2013 (when I was really skint!).

Last point is mortgage interest. £73k purchase price in 2011, £65k starting mortgage. Total repaid inc £8k deposit/fees (I counted every payment) approx £95k.

Comments

  • Langerhan
    Langerhan Forumite Posts: 97
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    Wow, only £73k for a two bedroom house? I always wince when I look outside of London...
    How much are you going to be paying off in a week's time? Congrats on getting to mortgage free at 40!
    Mortgage start date: 01/10/2021
    Original mortgage debt:
    £128,000
    Remaining debt (10/11/2023):
    £102,641
    Daily interest: £3.46
  • A_New_Start
    A_New_Start Forumite Posts: 57
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    Thanks Langerhan, just over £45k to clear in full. Yes it was very cheap in the grand schemes of things (houses). No option to downsize though! Your figures over 12 months look impressive.
  • powerspowers
    powerspowers Forumite Posts: 1,069
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    Congratulations!! That’s a great achievement and you’ve worked hard for it, as well as resisting life style creep as your income increases. Do you have any idea on longer term plans for work or what you want to do with your money? I think for now just enjoy being MF and treat yourself! 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,070/ £2,023 target


  • Ramouth
    Ramouth Forumite Posts: 642
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    Congratulations!  The feeling of security in knowing you own your house outright and no one can take it from you is priceless.  Enjoy!
  • A_New_Start
    A_New_Start Forumite Posts: 57
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    edited 30 November 2022 at 9:14AM
    Congratulations!! That’s a great achievement and you’ve worked hard for it, as well as resisting life style creep as your income increases. Do you have any idea on longer term plans for work or what you want to do with your money? I think for now just enjoy being MF and treat yourself! 
    Thank you. I'm not a natural spender, hate clutter and any money spent is purely essentials. Far from super tight but cautious we enjoy days out in the summer, the odd McDonalds once a month as a treat. Quite the opposite as I spent a lot of my 20's in debt, mainly over drafts but then was earning only about £1k per month back then as was renting for a few years also. Didn't get a credit card until I got the house and have been ok with those ever had more than £500 at any one time owing. I hit the loyalty offers in supermarkets, bank switch offers (been with every bank now, bar Lloyds).

    As for next year onwards, I'm hitting the savings big time with the additional disposable until I reach £20-30k, see how work holds out. ideally, I need to maintain my current earnings (or close enough) until at least 50 by then my daughter will be an adult and hopefully a little less dependent on me though I'm sure I will need to fund something towards a house deposit, car, education at some point in the future for her. Fairly sure these savings won't go on me but I'm ok with that and happier it won't on another penny on mortgage interest. We are planning a foreign holiday this year, 17 years since I went abroad. Again, noting extravagant, Spain for a week but even that is £££. Also try and up the pension to at test double digits contributions, only been stowing away 4% for the last 8 years since I was setup for workplace, only about £22k in there currently.

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