Posting for motivation!

RedFraggle

Really want to retire in 6 years. Mortgage being paid off is the determining factor so trying to throw everything at it!
Current balance £188,723
Basic payment: £1437
Fixed overpayment:£500

Additional payment this month: £500 so far.

firesidemaid

How old will you be in 6 years and how are you funding your retirement? Do you plan to work at all in a lesser way or just stop?Current job stable? Can you pay even more off? What is you current mortgage rate? Are you on a fixed rate and if so how long left on that?

I ask so many questions because I was planning to wait till 60 to 'retire', but have recently made the decision to semi-retire 4.5 years early and take both my main deferred gov pension and a second smaller one - pay off the mortgage and I could manage without working at all, but will prob work part time. BUT, I will be able to choose what I do for work and when. The sudden realisation that I can do this has been a revelation. It works for me and my situation. The sums show I won't regret it till I'm well into my 80s!

What I have also done to overpay or gain more savings over the last couple of years is stoozing, round-ups plus any coupons used or cashback made.

vacheron

First question, what is your age and the interest rate on your mortgage?  No point in battling to pay off a 2-3% loan if you can put that money into savings, investments, or matched company pension contributions, that will potentially return more than the mortgage interst you will save.

RedFraggle

Mortgage currently at 5.44% ERC drops dramatically next October so looking to swap that then.
Civil servant, fortunate to have an old school civil service defined benefit pension most of which is on final salary. At 58 I will be able to draw a pension of £43k with no lump sum. 
Have a small pension pot around £50k from employment elsewhere. 
Currently 52.
No other debt. 
Around £20k emergency fund across an ISA and an instant saver. Interest on both is less than the mortgage rate.
Higher rate tax payer. 
May inherit a max of £100k at some point depending on care costs for elderly Mum. 
Could get consultancy work on an ad hoc basis. 

So, it's mission chuck everything at the mortgage!

edinburgher

Oh my - that is a tasty pension - I have a CARE scheme and it's not often I'm jealous of someone else's arrangements

I don't suppose you have the option of AVCs that can be taken as a tax free lump sum at the same time as your pension? Would allow you to stop being a HR tax payer.

RedFraggle

I'm very lucky. The current mortgage is due to picking pension over cash in my divorce. I should be able to be below the HR cut off of £50k. The current Mr Fraggle doesn't work so once I'm standard rate for tax I can utilise some of his allowance too.

The McLoud Remedy really did me a huge favour. 

AVCs for civil service pensions are a separate scheme that I've never really understood to be honest but thanks for flagging.