Let’s get this Monkey off my back

edited 15 October 2020 at 8:32AM in Mortgage-Free Wannabe
3 replies 111 views
Baldyman1Baldyman1 Forumite
18 Posts
Sixth Anniversary 10 Posts Name Dropper Combo Breaker
edited 15 October 2020 at 8:32AM in Mortgage-Free Wannabe
Hi guys , newish  to the board although I’ve been a lurker for many years - sorry.

Anyhow I want to clear my mortgage debt as soon as I can , I’m pretty clear on my goals but was wondering if I’m missing anything that you guys can help me out on . I’ve no personal debt or car finance so any spare cash can be ploughed into clearing it of . I have a small pension but three BTL  2 @50% LTV mortgages and one that is clear .

I’m with First Direct and have 2 years left on a fixed rate at 1.93% , current debt is £57,730 as of this morning and that it has 11 years remaining . I can overpay as much as I like whenever I like as long as I leave a balance within the 2 years .

During the last three years I have been overpaying £320 a month and now I’m in a positive position to be overpaying even more. Like a £1000 a month more so a total overpayment of around £1300 a month on top of the £596 a month minimum payment at 1.93% over 11 years .  

Yes as long as things go to plan I can probably clear it inside three years however my question is with this much surplus cash is there something I could be doing that might pay it off even quicker , lock it up , premium bonds , red black at the casino  :):smile:

Thanks.

Replies

  • Squirrelz92Squirrelz92 Forumite
    196 Posts
    100 Posts Second Anniversary Photogenic Name Dropper
    Hello and welcome to the MFW board! Congrats on starting your diary :) Sounds like you have a good plan and a decent amount of disposable income to overpay on top of what you have already been managing to pay so well done! 
    Mortgage 3rd Aug 2020 £97750
    Mortgage 1st Jan 2021: £96062.83
    Mortgage Overpayments Aug - Dec 2020: £700
    Mortgage Overpayments 2021: £400/£2400
    Emergency Fund: £2200/£4000
  • FtbDreamingFtbDreaming Forumite
    1K Posts
    1,000 Posts Second Anniversary Name Dropper
    ✭✭✭
    Ooh good luck. I’m not that savvy so if it was me I would just pay off the mortgage then look into investing the money once the mortgage is cleared in a couple of years and you have loads of disposable income. 
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 (Now: June 2049)
    Current Balance: £65,300
    MFW2020 #156 £723.13/£2000
    MFW2021 #26 £1184.71/£2500
    MFW2022 #11 £10.97/£1500
    Backup/ Neutral fund £1056.16/£2000
    House fund £11.84/£1500

    Determined to make it! 
  • longway2golongway2go Forumite
    967 Posts
    Part of the Furniture 500 Posts Name Dropper
    ✭✭✭
    I would be thinking of pension provisions as if its all ploughed into the mortgage you could be missing some tax advantages which may be worth considering. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:
    Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂
    EF 0/12,000 (0%)😕 (5062.44 was ERC)

    Aim for 135,062 by Jan 2022 for 3 year challenge - 1058 to go

    Our Mortgage is never going to be as high as it is today. :j
    Onwards and downwards to a better life for our family. :j
    Just keep swimming
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