Planning to be mortgage free in 16 months
I think the title says it all really. I have been mortgage free before but in a house I didn’t love. We moved in 2020 just before lockdown and gained a new shiny mortgage. I felt sad that we were no longer mortgage free but we are much happier in this house.
Our five year fixed rate mortgage changes to SVR on 1st April 2025 and I am determined to save as much as I can so the mortgage is paid off on that date.
Our current mortgage rate is really low at 1.69%. Up until now we have made a maximum 10% overpayment each January (this is the maximum we can overpay without incurring charges). This year it makes sense to keep those savings in our savings account as the savings interest rate is higher than the mortgage. Then I can make a large overpayment on 01.04.25 when we change to SVR, which is also the date that the 10% overpayment limit disappears.
I am a great lover of a spreadsheet or two. I have a sheet that shows how much I should save each month and how much I should have saved by April 25. It will be enough to clear the mortgage balance (keeping fingers crossed).
This plan is fantastic but I’m so impatient. I love making mortgage overpayments! To not make any for 15 months is going to be hard for me as I gain huge pleasure from seeing the balance decrease.
So I have decided that anything I can sell on Vinted or eBay in 2024 will be diverted straight to the mortgage. My mindset being that I haven’t expected to make any money from selling my unwanted household tat so it’s bonus money that doesn’t need to go into the savings account. I get bored of listing stuff on eBay and I think this is a great way of motivating me to do it plus I will get to declutter my house and add a few pennies (hopefully pounds) to the mortgage.
I’m no stranger to overpaying the mortgage. I paid off our previous mortgage 8 years early, an achievement I’m really proud of. I can’t wait to be mortgage free again.
Let the decluttering begin!
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