I would love to be mortage free but...

Sncjw

As per the title i would love to be mortage free but there is a few things that is also conflicting me. 

Husband and I own a home ( well not fullt because we still owe the mortage) and we are not planning to move house. We currently have 55k left on mortage and if we hammer down the mortage we could potentially get it paid off in 2 years by using the money we were paying towards our credit card debt which would be paid off this month or next. 

We can only pay 7510 a calender year without penatly as over payment to mortage amd this resets in may..we wouldn't be near that amount before the cut off sadly but  ould still put a chunk down.   If we combine the mortage payment and overpayment by 1st may it would be 7800.  Then the new year resets with around 47k left to pay on mortage.  Onvioulsnt can't out rhe amount we could save up for the rest of the year onto mortage so would put in a savings account. Then just keep saving until we have the full amount left to pay it off even with erc. 

So sounds good doesn't it. But the problem is that we have a boiler that is around 18 years old. We are guessing as it came with the house and I google image searched it and checked manufacturer's year. We had an issue with the preasure ladt year which was fixed by inflating something and has been ok this winter. We have a thermostat we have no clue on but we have a warm house somehow.  So we were considering getting new boiler and thermo stat once credit card is paid off . 

We also have a cruise holiday to pay off by April. It would take about 2 months the money we can save to pay that. Then husband wanted to use savings money for excursions so we have the money ready to oay the bill at the end of the holiday. 

We do have a kitchen that could be done up but it is still functional and also the garden is just a mess but could wait as I know these things are pricey. 

Also we would need money saved to make down-payment on next car when it is duein around 2027. 

We budget our money each month and we also budget for savings and holiday spends each month so the extra savings money thay will come from the credit cards payment is an extra savings amount. 

Any advice what you would do. 

Thank you 

itsthelittlethings

I would love to be mortgage free but I kind of want a bigger place and I want to move back to London.

itsthelittlethings

You don’t need a new kitchen, you may need a new boiler. That’s my money advice.

silvercar

You should be reducing the debt with the highest interest first. Only repay your mortgage, generally the lowest borrowing you have, if you won’t need the money for anything else. 

Sncjw

silvercar said:

You should be reducing the debt with the highest interest first. Only repay your mortgage, generally the lowest borrowing you have, if you won’t need the money for anything else. 

I need to pay the card off by December as that is when the 0 percent deal finishes and it's doable. 

Just want to know what the next steps i should take because my head in torn between two.i don't know why my hesrt is set on being mortage free in two years. We were overpaying before we racked up some debt but I haven't paid any interest on this debts as I have learned alot on here. 

Want to avoid using cards unless absolutely needed. 

Sncjw

itsthelittlethings said:

You don’t need a new kitchen, you may need a new boiler. That’s my money advice.

Yeah kitchen is functioning at the moment although it is small and not to the decor we would like. To be honest we don't know whay we would do to it as limited bench space and we want to keep the pantry. 

singhini

Finish credit card payments.

Build savings for boiler replacement and cruise first.

Any extra money after that can go toward mortgage overpayment up to the allowed limit.

Long-term projects (kitchen, garden, car) can remain in a planned savings account.

elsien

^^^ this.
paying a small amount towards the mortgage if you can afford it might satisfy what’s going on in your head whilst actually putting the money to more effective use.

YBR

You don't give much detail, but generically I'd suggest:

1. Finish paying off CC debts - before they become the high interest item.

2. Put money to pay Cruise costs - there's a timescale on this

3. Save money for boiler replacement and some extra for discretionary cruise spending - this will allow you to enjoy excursions etc knowing you have the necessary cash.

4. Continue to save for kitchen/car etc. alongside putting some towards mortgage overpayments - being mortgage free feels great, but it's better to be still paying a mortgage longer, and not having to go into debt for your next car or to pay for some other unexpected cost.

Depending on timescales, you might be able to do 1 & 2 in parallel.

kimwp

Why do you need to pay a down payment on a car in 2027?

Dobbibill

good advice above - have you got an emergency fund saved up in case the boiler/other expense is required before the plan? if not then that would be something to focus on short term when your CC debt is paid. 

plan your savings for the boiler/cruise which are time limited and if you can pay a smaller amount off your mortgage then great, if not you have to prioritise things. don't underestimate the positive of paying 'something' off your mortgage no matter how small.