We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
A message from the other side!
Escapar2020
Posts: 136 Forumite
It may seem like a long slog, but to anyone just getting started, it's worth it! Keep overpaying if you can.
I technically became mortgage neutral in 2019, 9 years ahead of the planned mortgage term, but have recently decided to pay-off the remaining balance five years early. I'd worked out that the early repayment charges would be less than I'd be paying in interest over the remaining term, and probably have been for a while so it's worth checking on that if your a few years from the end of your mortgage and have some cash stashed away. My monthly repayment was about £240, so I don't need to find that every month now. This is the first month where I won't have a mortgage payment going out and, maybe it's because the spring sun is shining, it's a good feeling!
Would I have done anything different? Not in terms of over paying the mortgage, but it would have been good to think a bit more about retirement planning and pay more into pensions/investments to retire early. I did start to put much more into a SIPP and workplace pension when I became mortgage neutral in 2019, but up to then had been focussed on clearing the mortgage. As it is now, I need to still keep working for a few years, so being mortgage free doesn't mean being free!
I technically became mortgage neutral in 2019, 9 years ahead of the planned mortgage term, but have recently decided to pay-off the remaining balance five years early. I'd worked out that the early repayment charges would be less than I'd be paying in interest over the remaining term, and probably have been for a while so it's worth checking on that if your a few years from the end of your mortgage and have some cash stashed away. My monthly repayment was about £240, so I don't need to find that every month now. This is the first month where I won't have a mortgage payment going out and, maybe it's because the spring sun is shining, it's a good feeling!
Would I have done anything different? Not in terms of over paying the mortgage, but it would have been good to think a bit more about retirement planning and pay more into pensions/investments to retire early. I did start to put much more into a SIPP and workplace pension when I became mortgage neutral in 2019, but up to then had been focussed on clearing the mortgage. As it is now, I need to still keep working for a few years, so being mortgage free doesn't mean being free!
4
Comments
-
Well done on being mortgage free.
It is a great feeling
I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.2 -
Congrats on getting to mortgage free. Glad you have been prioritising pension recently - it all helps. I'm focusing primarily on pension as it can given an on-going income or lump sum which is beneficial and there are major tax benefits.Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £172.5K Equity 36.11%
2) £1.8K Net savings after CCs 13/9/25
3) Mortgage neutral by 06/30 (AVC £26.8K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 32.6/£127.5K target 25.6% 13/9/25
(If took bigger lump sum = 54.5K or 42.7%)
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 £4.8K updated 13/9/251
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.8K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.8K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards