Mortgage(s) priority.

Drummerboy79

Hello folks- I’d like some advice on the following please…..

I’m 45 and would like to retire mortgage free at 55 (or as close as possible). Having moved house last October our current mortgage with HSBC is split into 3 parts and looks like this. 

£17,000 @ 1.14% - deal ends Jan 27
£49,500 @ 1.99%- deal ends Dec 25
£127,500 @ 4.59% - deal ends Oct 26

I have no debt (other than the mortgage) & money in isa/lisa/pension plus a rainy day fund so feel well set. 

My question is- how should I best clear the mortgage debt?

I had planned the following:

to pay a chunk off the one ending in 2025 when I remortgage & set up overpayments 

to pay off in full the one ending in 2027 with savings 

remortgage the one ending in 2026 and again set up overpayments. 

Does this look like the right plan?

 It’s now occurred to me that I may be better making overpayments on the biggest amount and remortgaging the smaller amounts (presumably at something around 3.5%) when those deals end. 

Thoughts please….

Thanks

Rob

Drummerboy79

Hello folks- I’d like some advice on the following please…..

I’m 45 and would like to retire mortgage free at 55 (or as close as possible). Having moved house last October our current mortgage with HSBC is split into 3 parts and looks like this. 

£17,000 @ 1.14% - deal ends Jan 27
£49,500 @ 1.99%- deal ends Dec 25
£127,500 @ 4.59% - deal ends Oct 26

I have no debt (other than the mortgage) & money in isa/lisa/pension plus a rainy day fund so feel well set. 

My question is- how should I best clear the mortgage debt?

I had planned the following:

to pay a chunk off the one ending in 2025 when I remortgage & set up overpayments 

to pay off in full the one ending in 2027 with savings 

remortgage the one ending in 2026 and again set up overpayments. 

Does this look like the right plan?

 It’s now occurred to me that I may be better making overpayments on the biggest amount and remortgaging the smaller amounts (presumably at something around 3.5%) when those deals end. 

Thoughts please….

Thanks

Phoenix72

As long as savings interest rates remain above your mortgage rates then keeping it invested would make most sense?

Mark_d

Always make overpayments on the more expensive debt.  So right now your overpayments should be on the 4.59% debt.