Life begins at 35?

[drainbrain]

If I was the OP I'd sell the paid off house, use the equity as deposit on the new place, and the £2.5-3kpcm to service the IO mortgage on it.

And whatever the old mortgage was would be getting spent on the financing of the really nice car to keep in the garage of the really nice house.

There's something very enjoyable about living in a super house with a great car in the garage.

Of course you might get bored or grow out of such stuff one day, but that's 'one day'.

And, for some, 'one day' comes before they've tried it. That's called 'a pity'.

[TSCfree]

CaptainSensib1e said:

Don't wish to derial this thread, but I don't get why you'd want to pay off your mortgage at all. Borrowing is so cheap at the moment, makes far more sense to use the money to invest is assets that will grow far more quickly than your mortgage will accrue interest.

So, to answer your original question, in your postion I would remortage for as much as I could borrow at sub-1.5%, and invest in in high yielding income funds (which pay in thee region of 4%) and enjoy the difference as free income.

So at a time when no-one knows how the biggest change in British history might affect us financially, you'd risk the lot? There's balls of steel and there's negligence. I think your strategy, at this time, falls into the latter.

[Beetnik]

DonkeyApple said:

What a daft comment.

It's meant to be provocative, not daft. Here we have someone who earns good money, has a wife and two kids and prioritises paying his mortgage off above pretty much all else according to his post.

Let's say, for example, he'd foregone paying £10k a year off his mortgage for the last 10 years. He'd still have a shed load of equity in his house - enough to downsize to a pretty decent house and be mortgage free should he wish/need to. The cost? barely £100 a month - peanuts in his circumstances.

His kids could have had great memories of all those wonderful holidays they'd had as well as the very nice house they'd lived in. I doubt they'll have fond memories of the security of mum and dad being mortgage free.

Life's for living; not being over cautious and shuffling off this mortal coil having lived frugally all your life and leaving a small fortune.

Just my two penn'orth.

[DonkeyApple]

Beetnik said:

DonkeyApple said:

What a daft comment.

His kids could have had great memories of all those wonderful holidays they'd had as well as the very nice house they'd lived in. I doubt they'll have fond memories of the security of mum and dad being mortgage free.

Kids don't give two craps about a couple of weeks holiday a year and they don't really care about the house. If their parents are happier and more relaxed because they don't have any debt then that is what the children will benefit from. If someone focussed on not being in debt to this extent then it is clearly something both important and beneficial to them which means it is a life positive action for them and will hugely benefit the quality of life of their family.

Focussing on the 50 weeks a year you are at home is slightly more pertinent than the two weeks you are not.

Trying to make out that the OPs actions have been detrimental to their children because they won't have been to Disney land is daft.

[drainbrain]

Always seemed to me to be a lot cheaper to let the life assurance pay off the house.

[Jockman]

drainbrain said:

Always seemed to me to be a lot cheaper to let the life assurance pay off the house.

One minor pitfall of that strategy.....

[DonkeyApple]

drainbrain said:

Always seemed to me to be a lot cheaper to let the life assurance pay off the house.

Not always. Just sometimes. One issue is that few people take out such policies early enough and if they do they forget to increase their policies when they increase their debt obligations. But for any household where just one person is the bread winner and the other adult lacks the ability to replace that income stream should they pass away then you'd expect life cover to be integral to any balanced long term plan.

At the end of the day what is right for most people is a blended compromise of paying down mortgage debt at an appropriate rate, balanced savings of cash for short term needs and other investments (whether property, funds, another business, ISA or pension wrappers etc) for longer term growth to meet income needs once employers retire you etc.

Then at either ends of that spectrum you have the Disco queens and the misers. Both of whom are living by extreme beliefs that simply don't fit the majority. Interestingly, both extreme types end their lives in poverty just that for the miser it is a self induced refusal to spend whereas for the disco queens it's due to foreclosure by their financiers.

[Beetnik]

The op is in the fortunate position of having a good income and therefore is able to make life choices that many people can't. Fair play to him, he talks of 'restoring a bit of balance'. But talk of holidays and cars (and this is pistonheads not accountingweb) soon turns to talk of pensions and BTLs.

Let your hair down GreenTriangle - go blow £80k on a car, let us know what it is and don't let your next missive be titled 'Life begins at 45?'!

[drainbrain]

There's the bloke who buys the best house and car he can afford to save up for.

And there's the bloke who buys the best house and car he can afford the monthly instalments on.

Which bloke has the best house and car?

Which bloke would you rather be?

(hint: there is not necessarily a 'right' answer)

[DonkeyApple]

drainbrain said:

There's the bloke who buys the best house and car he can afford to save up for.

And there's the bloke who buys the best house and car he can afford the monthly instalments on.

Which bloke has the best house and car?

Which bloke would you rather be?

(hint: there is not necessarily a 'right' answer)

Absolutely. But the disco queens should shut up and live with the consequences when the music stops. And no one should have to bail them out as has been happening for nearly a decade now.

[Phil.]

DonkeyApple said:

Kids don't give two craps about a couple of weeks holiday a year and they don't really care about the house.

My kids are in their late teens and their best memories (according to them) are of family holidays and outings. They are only with you for a short time before leaving home. I've always struck a balance between living for now and saving for the future. Life's not a rehearsal, and all that.....

[The Green Triangle]

Beetnik said:

His kids could have had great memories of all those wonderful holidays they'd had as well as the very nice house they'd lived in. I doubt they'll have fond memories of the security of mum and dad being mortgage free.

I see where you're coming from, but my kids are 1 1/2 and the other just turned 5, so they haven't missed out on much and are still a bit young for those holidays of a lifetime.

[mug81]

First things first, well done! You're in a very fortunate position and you should feel good about it.

I think the most important thing for you to do at the moment is to take a step back and do nothing for a little while after the mortgage is cleared. There are so many options out there, you'd be foolish to jump straight into something else- enjoy a couple of months feeling flush, you've earnt it!

[Phil.]

mug81 said:

First things first, well done! You're in a very fortunate position and you should feel good about it.

I think the most important thing for you to do at the moment is to take a step back and do nothing for a little while after the mortgage is cleared. There are so many options out there, you'd be foolish to jump straight into something else- enjoy a couple of months feeling flush, you've earnt it!

This.

[The Green Triangle]

mug81 said:

First things first, well done! You're in a very fortunate position and you should feel good about it.

I think the most important thing for you to do at the moment is to take a step back and do nothing for a little while after the mortgage is cleared. There are so many options out there, you'd be foolish to jump straight into something else- enjoy a couple of months feeling flush, you've earnt it!

Thanks. Yes I think a bit of time out to soak it in is on the cards and few indulgences too. Definitely considering something in the garage over the next year...not sure I'd spend as much as 80k like someone advises above, but a quarter of that should secure something interesting with the bonus of being a bit of an investment too....

Just didn't want cash after the mortgage doing little or nothing for me. I have isa's and will start to top those up in the short term I think and look at some share linked ones too.

Right... Off to the classifieds...

[drainbrain]

Spendthrift's incentivising logic:

Rather than save for the future you plan to do better in the future so you've even more to spend and have no reason to save, or to regret spending.....

[mug81]

The Green Triangle said:

mug81 said:

First things first, well done! You're in a very fortunate position and you should feel good about it.

I think the most important thing for you to do at the moment is to take a step back and do nothing for a little while after the mortgage is cleared. There are so many options out there, you'd be foolish to jump straight into something else- enjoy a couple of months feeling flush, you've earnt it!

Thanks. Yes I think a bit of time out to soak it in is on the cards and few indulgences too. Definitely considering something in the garage over the next year...not sure I'd spend as much as 80k like someone advises above, but a quarter of that should secure something interesting with the bonus of being a bit of an investment too....

Just didn't want cash after the mortgage doing little or nothing for me. I have isa's and will start to top those up in the short term I think and look at some share linked ones too.

Right... Off to the classifieds...

80k?!? Jeez Louise man. I was thinking more along the lines of being more kind to yourself- eat out a few more times a week than usual, have the big boy steak or upgrade to the sea view villa when booking that holiday. Remember, it takes a bloody long time to earn and seconds to make disappear!

Don't be afraid to take your time, I understand that its very exciting and you dont want to miss any opportunities etc etc but just remember being for every chance missed there's another three waiting and noone is going to steal it from you, it'll still be there tomorrow

[The Green Triangle]

Sorry I didn't mean you, I meant someone else above...

Yes some large steaks are In mind, nom nom...

I checked out buy to let, and it looks like to get mortgages now you need some pretty hefty deposits. Not sure I want to be so single minded in saving up after being just that for the last decade.

Definitely coming round to the chilling out for a bit, taking some time to figure out what to do next, and most importantly treating myself and those around me. Life is for living after all, I just need to remember how to do that and I'm sure something in the classifieds will help here

Edited by The Green Triangle on Saturday 25th February 16:09

[mug81]

If I were in your situation, I think I'd do the following (give or take)

I'm not a fan of BTL personally, so I would look at a holiday home/investment for a fraction of the cost of a BTL. More joy, less capital outlay and less grief (obv less cap appreciation also but life's too short, enjoy it while you can)

I would take my theoretical car budget and halve it

I would do a week or two super lovely holiday with partner (as a one off for the time being)

I'd also do another weeks hols taking my family (parents siblings etc) away, not crazy just a villa rental for a week

Then, when I got back i'd have an appointment booked with an IFA/ wealth manger who has some ideas for a medium- high risk plan for two years

Just my thoughts though!

Edited by mug81 on Saturday 25th February 17:18

[Croutons]

I'm guessing you're pretty debt averse OP (which is fine Btw).

If you have no other debts (cc's, loans etc) Then don't actually clear the mortgage, get it to the smallest you can without actually paying it off.

That keeps your credit score high, as you will have continual evidence of borrowing and paying. Mine cost £2.12 this month, for this reason.