Early Thirties Mortgage Free Goal

Steve123456789 · 25 September 2019 at 1:35PM

Hi all. Been reading people's diaries on here about their path to being mortage free, so I thought I'd start my own.

Bought a house with my wife last year. We're both in our mid twenties. £165k mortgage on a 4 bed house.

Aiming to pay it off before I'm 33. Hit the max overpayment limit this year and aim to do this each year for five years, which will get easier each year.

kitjos · 27 September 2019 at 12:02PM

Good on you! :beer:. We're in our 30's and trying to achieve the same as you for our 40's. We've been OP'ing for many years (started in our 20's) and hit a fair few road blocks, dont be discouraged if you do so. Just do it as/when life justifies.

Best of luck and keep thinking of the end line

x

beanielou · 27 September 2019 at 1:48PM

Good luck!

LeighofMar · 27 September 2019 at 5:25PM

Welcome. That sounds like a fantastic goal and a great age to enjoy being mortgage free. I hope to be 45 but poor DH will be 60. Better late than never I suppose. Good going.

Steve123456789 · 7 October 2019 at 2:08PM

Cheers guys.

I'm planning on doing a small overpayment, just to hit the absolute limit for the year.
Should I get the value in writing, just to make sure I'm not going over the limit and going to be charged, or is it okay just doing the payment?

Steve123456789 · 10 October 2019 at 9:53AM

I've hit the maximum overpayment amount for this year.
£16510 overpaid since January.
Max. overpayment should be about £13900 next year.

fresh_cotton · 10 October 2019 at 12:52PM

good luck with it all. being mortgage free in your 30s, is brilliant. it opens up so many more choices in life and gives you a feeling of being free and not weighed down.

Hopefully you will enjoy the journey as I did. It never felt like I was missing out, I happily overpaid, rather than waste money on all sorts of rubbish money can buy these days.

Steve123456789 · 11 October 2019 at 11:14AM

I can't wait. We either want to retire early, or go part time as soon as our mortgage is paid off.
Working 3 just days a week from 33yrs old would be brilliant.

I don't feel like I'm missing out at all either. I see people my age frittering money away on junk all the time and I don't get it.

fruitloop04 · 11 October 2019 at 7:59PM

Good luck on your journey! How amazing to be mortgage free by 33 and working part time...do not lose sight of this goal

I plan to be mortgage free by 40 but it will be a challenge!

Tiggermad · 11 October 2019 at 8:31PM

Good luck, we were mortgage free on our first house by age 35. It made a massive difference when we wanted to move up the housing ladder. We have nearly paid off our current mortgage (we own 6/7th of our house!) at age 41.

Also worth checking about your over payment limit. Ours is 10% of the starting balance of the mortgage at the beginning of the fixed term, not 10% at the start of each year. So for all of the 3 years of our fixed rate we can overpay 10% of the starting loan balance, if that's the same for you, you'll still be able to overpay up to 16500 every year of your fixed term until you remortgage. When you remortgage, the 10% resets to be 10% of the starting balance.

Hope that makes sense!

Steve123456789 · 14 October 2019 at 2:36PM

It'd be brilliant if the 10% was £16500 each year, but I'm sure I've read that it's 10% at the start of each year.

The good thing is, When we've finished our mortgage, we don't want to up-size because there are only two of us, and we have a 4 bed house. It's way bigger than we need, but it was a steal at the time.

Replying to the post above, above, 40 is still much better than almost everyone else in the UK. My parents are just finishing theirs now at 60 and that's pretty typical, from what I can tell. They had a horrible child to bring up though...

Early Thirties Mortgage Free Goal

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