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  • FIRST POST
    • Retireyoung
    • By Retireyoung 16th Dec 16, 11:21 AM
    • 21Posts
    • 20Thanks
    Retireyoung
    Mortgage neutral in 8 years!!!
    • #1
    • 16th Dec 16, 11:21 AM
    Mortgage neutral in 8 years!!! 16th Dec 16 at 11:21 AM
    I have been reading these diaries for a while now, picked up some great tips and very inspirational.

    We are just about to move to our forever home and taking on a rather large mortgage, so an ideal time to start our own diary. The rate on the mortgage is only 1.24% and we feel we can get a better return investing the overpayments rather than paying off the actual mortgage, hence the title ‘Mortgage neutral in 8 years’.

    The mortgage is going to be £390,000 over 30 years. We have a good start on the road to being mortgage neutral as we have savings of £165,000 so this will leave us to find £225,000 over the next eight years. We are very fortunate that I have a good salary and we don’t have an extravagant life style so our savings rate will be high. 25/12/25 is the target neutral date just because it has a good ring to it.

    So in summary:

    Mortgage = £390,000
    Savings = £165,000
    Need to save £225,000

    Wish me luck.
Page 1
    • lincoln-potter
    • By lincoln-potter 16th Dec 16, 11:39 AM
    • 880 Posts
    • 4,285 Thanks
    lincoln-potter
    • #2
    • 16th Dec 16, 11:39 AM
    • #2
    • 16th Dec 16, 11:39 AM
    Welcome retireyoung, and good luck with the over payments.

    I shall watch your progress

    MFW #32 £6,700/£6,700
    Make £2017 in 2017 challenge - £821.76 #10
    • Jessy103
    • By Jessy103 16th Dec 16, 1:36 PM
    • 525 Posts
    • 2,237 Thanks
    Jessy103
    • #3
    • 16th Dec 16, 1:36 PM
    • #3
    • 16th Dec 16, 1:36 PM
    Good luck with your journey Retireyoung! I will be watching with interest and look forward to some of your saving tips!
    Jess x
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount Jan 2018 - £58,500.00
    Overpayment Target for 2018 - £5,000 /£663.78
    Jan - £369.23 Feb - £294.55
    • Retireyoung
    • By Retireyoung 21st Apr 17, 3:55 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    • #4
    • 21st Apr 17, 3:55 PM
    • #4
    • 21st Apr 17, 3:55 PM
    I have not been very good at keeping this diary up to date.

    All moved in and things have now settled down a bit. I could of increased our savings figure with my end of year bonus but decided to put it into my pension to get the tax relief.

    Figures to date:
    Mortgage = £388,275
    Savings = £168,738
    Need to save = £219,537

    So £5.5k closer to the target since last update.
    • Retireyoung
    • By Retireyoung 23rd May 17, 2:06 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    • #5
    • 23rd May 17, 2:06 PM
    • #5
    • 23rd May 17, 2:06 PM
    Well overall May has not been a great month. One of my investments took a big hit so savings have suffered, I'm sure it will be fine in the long term so not too worried at the moment.

    Figures to date:
    Mortgage = £387,400
    Savings = £157,100
    Need to save = £230,300

    So gone backwards the best part of £11k in a month, hopefully be better next month.
    • originalmiscellany
    • By originalmiscellany 23rd May 17, 4:24 PM
    • 1,609 Posts
    • 3,883 Thanks
    originalmiscellany
    • #6
    • 23rd May 17, 4:24 PM
    • #6
    • 23rd May 17, 4:24 PM
    I tell you what retireyoung, you're in a different position to me, but I love the fact you're sharing your journey with us If I "lost" 11k in a month I'd be terrified but I think long term, you have got it nailed on. looking forward to a better month next month.
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
    • Retireyoung
    • By Retireyoung 30th Jun 17, 12:50 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    • #7
    • 30th Jun 17, 12:50 PM
    • #7
    • 30th Jun 17, 12:50 PM
    Hi OM

    Dropping that amount is not something I enjoy but I cannot complain as the markets have been very good to me over the last few years.

    So another month has passed and again it has not been a great one. Investments took another hit this month. As we are in this for the long term it should be ok, next month a non-listed company we have an investment in will be revalued so I expect this to have a positive contribution in July.

    In the figures I don!!!8217;t include the money in our current account maybe I should as this money could go towards the outstanding mortgage.

    Figures to date:
    Mortgage = £386,500
    Savings = £153,500
    Need to save = £233,000
    • Retireyoung
    • By Retireyoung 26th Jul 17, 2:53 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    • #8
    • 26th Jul 17, 2:53 PM
    • #8
    • 26th Jul 17, 2:53 PM
    So another month has gone by, July has been very good as I got a healthy tax rebate after adding a bonus to my private pension. I have also decided to add the cash in our bank to the figures which is in a good position at the moment due to the tax rebate.

    Figures to date:
    Mortgage = £385,650
    Savings = £174,050
    Cash in bank = £11,400
    Need to save = £200,200

    £33K closer to the goal of being mortgage neutral in a month. Don!!!8217;t think there will be many months like this in the future.
    • Viking_mfw
    • By Viking_mfw 26th Jul 17, 3:18 PM
    • 123 Posts
    • 538 Thanks
    Viking_mfw
    • #9
    • 26th Jul 17, 3:18 PM
    • #9
    • 26th Jul 17, 3:18 PM
    One month like that would be good enough for me! Excellent news
    • Retireyoung
    • By Retireyoung 30th Aug 17, 10:38 AM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    August has been another great month on the mortgage neutral front, not as good as July but I don!!!8217;t expect that sort of performance very often. The investment that took a large fall in May has now recovered which accounts for this month!!!8217;s gains.

    Our daughter starts school in September so we will start saving on nursery fees moving forward.

    Figures to date:
    Mortgage = £384,775
    S&I = £183,300
    Cash in bank = £11,000
    Need to save = £190,475
    • Retireyoung
    • By Retireyoung 29th Sep 17, 8:20 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    Another month has flown by. Investments not moved much this month in the end, there had been a few up and down swings but finally settled £900 up. It is nice that the mortgage is getting smaller with every payment, our last mortgage was interest only so the outstanding balance did not change for five years.


    Figures to date:
    Mortgage = £383,900
    S&I = £184,200
    Cash in bank = £11,700
    Need to save = £188,000
    • Retireyoung
    • By Retireyoung 27th Oct 17, 12:05 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    Not much change for October, investments down around £500 which after the last few months!!!8217; volatility a bit of stability is welcome. The wife has been out of work for a few months and starts a new job in November so the cash in bank figure should start to go up from now on.



    Figures to date:
    Mortgage = £383,000
    S&I = £183,700
    Cash in bank = £11,900
    Need to save = £187,400
    • Retireyoung
    • By Retireyoung 7th Dec 17, 1:39 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    So not much to report again for November, investments down a little, it was down quite a bit but fortunately made a recovery at the end of the month. The wife!!!8217;s start date got moved to the end of November so that didn!!!8217;t make an impact on the cash in bank figure. Overall moved £1,500 in the right direction which we can't complain about really.



    Figures to date:
    Mortgage = £382,150
    S&I = £183,400
    Cash in bank = £12,900
    Need to save = £185,850
    • Retireyoung
    • By Retireyoung 3rd Jan 18, 11:42 AM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    Decembers update a little late. Christmas bonus received in December which put a positive spin on the cash in bank figure. Most of the bonus went into my SIPP which I don!!!8217;t include in these figures but I should get a nice tax rebate in this month!!!8217;s pay. Investments down again but nothing to worry about.



    Figures to date:
    Mortgage = £381,270
    S&I = £182,370
    Cash in bank = £17,300
    Need to save = £181,600
    • Retireyoung
    • By Retireyoung 31st Jan 18, 2:48 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    Good progress made in January on the investments front, up almost £5,000 at the end of the month. It was a lot more mid January but has dropped along with the markets in general. I don!!!8217;t make overpayment to the mortgage but I!!!8217;m looking forward to Feb as the mortgage will start with a 37 and not 38, bit sad but there you go. Cash in bank figure also up as tax code changed due to my bonus payments into the SIPP. So, all in all very happy with January.

    Next month will be our one year anniversary in this house, amazing how fast time goes.



    Figures to date:
    Mortgage = £380,400
    S&I = £187,600
    Cash in bank = £18,900
    Need to save = £173,900
    • Retireyoung
    • By Retireyoung 6th Jun 18, 4:36 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    It!!!8217;s been a busy few months so not had any time for updates, lots going on with work and a couple of holidays. Savings and investments have been up and down a lot in both directions, currently up so I!!!8217;m not complaining.

    Cash in bank figure is down as £10K has been moved into my ISA.


    Figures to date:
    Mortgage = £376,900
    S&I = £206,700
    Cash in bank = £8,500
    Need to save = £161,700
    • courage2change
    • By courage2change 9th Jun 18, 8:57 AM
    • 25 Posts
    • 34 Thanks
    courage2change
    This is such an inspirational thread! I like the net worth theme. I’m always too impatient to see the mortgage number go down but this investment thing is working wonders for you.

    Amazing progress - well done.
    • Retireyoung
    • By Retireyoung 21st Jun 18, 3:46 PM
    • 21 Posts
    • 20 Thanks
    Retireyoung
    Thanks C2C

    Looks like you have made good progress on your mortgage also. I do sometimes feel it would be a lot less stressful to just overpay the mortgage as my route does have many highs and lows along the way, overall it seems to be working as currently two years ahead of schedule to be mortgage neutral.
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