Mortgage free in two years

baciamiancora

What it says on the tin, really! 

For context, there’s me, Mr Baciamiancora and our 5yo. We earn around £155,000 between us. 

We have £260,000 left on a very low deal (0.99%) and it’s up for renewal in January 2027. The aim is to save enough in cash to pay it off because when I run it through the current deals, the repayments are horrible. There’s not much point making overpayments as the cash is sitting in a couple of 5.1% savings accounts and so — even taking into account having to pay tax on anything over £500 interest — it’s massively out-performing the mortgage. It does feel counter-intuitive to be hoarding piles of cash, though. 

The current situation is that we have around £180,000 saved - around £10,000 of that is in a S&S ISA so I would prefer not to cash it. I’ve just paid off my student loan, so my take home pay will be going up by £450 from this month and I’m due a £400 refund from HMRC because they took too much in June. 

I’ll go through our last month’s bank statement at some point but, off the top of my head, I need to do something about our Sky bill (it’s crept into triple figures) and probably break up with my addiction to M&S yellow stickers. 

Brie

Sounds sensible to have the stash in a high interest account and wait until the last minute to pay off everything rather than be hooked into another mortgage deal for X years.  

You might want to go on to the debt free board and fill out the SOA to get a proper look at your budget to see where else you might trim.  Not paying the TV license is an obvious one for those what don't need it.  But there's bound to be other bits and pieces.