I've put together a spreadsheet that shows the different repayment dates depending on the different options I take.
As it stands, continuing along my current path, Mortgage will be paid off in February 2045 (I'll be 58)
The options I see for myself are as follows:
A) Increase my repayments by €125 per month (which currently would not be a stretch at all) - mortgage free by May 41 + significant amount of liquid assets.
- This would still allow me to build up liquid assets through savings as well as add to a currently non existent pension.
B) Increase repayments to €125 per month + 10k capital payoff, this would have mortgage repaid by Jan 40 (save 22500 in mortgage repayments by my calculations)
C) Increase repayments to €125 per month & 15k capital payoff = mortgage paid off by May 39 + full rainy day fund of 6+ months expenses.
D) Increase mortgage repayment by €625 per month = mortgage paid of by May 33, but no savings to be had in short term, would have no savings but be able to match employer contribution for pension.
I'm kind of blabbing on here so I guess question is as follows - given that I reckon i'll probably be earning a significantly lower wage in 12 months time then I am now, should I try and plow as much money into the mortgage now, knowing that I can just reduce repayments when the time comes. Should I keep a higher than usually advised "rainy day fund" due to this.
It seems to me that would be the sensible thing to do, but I'm new to this so any advice would be much appreciated.