New mortgage, are we mad!!

Startingoutagain · 27 October at 6:50AM

My husband and I are just about to embark on a new mortgage journey as we move to a detached home nearer to family and my employer. Its been a hard road to get here and we're both thrilled that we have this opportunity.

We paid off our first mortgage on our first owned property in 2023. This time it's a smaller mortgage of £70k. I really want to have this paid off by the time I turn 60 in just over 5 years time. So it's going to be overpaying and saving alongside the mortgage repayments for around 65 months but totally doable.

Here for moral support and cheerleading, never thought we would get here but we're thrilled. Lots of decorating and a garden to makeover but we have the time. Feels like starting over 36 years later!!

kimwp · 27 October at 7:22AM

Investments are for longer than five years, but given that you will be able to access private pensions in three years, does it make sense to take advantage of that point- you'll potentially be able to save on tax and NI if you do it through salary sacrifice. (Depending what tax you'd pay on withdrawal)

HouseMartin567 · 27 October at 7:25AM

Hello!

We have done similar this year - first mortgage paid off but decided to move to a bigger detached house. A little younger than you, but slightly bigger mortgage. Honestly, it’s the best thing we could have done!! I love being detached and am making the most of the extra space.

I’m sure if you can come up with a sensible plan for saving and overpayments then you will be able to do it. Good luck!

Startingoutagain · 27 October at 2:44PM

kimwp said:

Investments are for longer than five years, but given that you will be able to access private pensions in three years, does it make sense to take advantage of that point- you'll potentially be able to save on tax and NI if you do it through salary sacrifice. (Depending what tax you'd pay on withdrawal)

We both have salary sacrifice work pensions we're saving into so have potential to increase what we save. We've a great financial advisor who gave us the confidence to go ahead. We may just pay it off in 2 years time when our fixed deal ends. It feels good to know we're secure in having borrowed so we can carry on investing!

Startingoutagain · 27 October at 2:49PM

HouseMartin567 said:

Hello!

We have done similar this year - first mortgage paid off but decided to move to a bigger detached house. A little younger than you, but slightly bigger mortgage. Honestly, it’s the best thing we could have done!! I love being detached and am making the most of the extra space.

I’m sure if you can come up with a sensible plan for saving and overpayments then you will be able to do it. Good luck!

Hi HouseMartin
Thanks for your reply, today is an emotional one as we finalise our packing ready to exchange.
I know we will be happy with our slightly larger detached, but it's a rollercoaster ride for sure. Glad to hear you found your ideal home. Change is always a challenge for me but I will settle down.
We have a couple of plans, but I'm amazed we've gone back to the mortgage, swore never again when we paid the original one off but life changes and you realise you're only hear once!