Is being mortgage free overrated?
Discussion
Is being mortgage free such a big deal? Does it actually change the way you think, feel, live and spend? I keep reading it does but I can't see it?
While I would love to not pay it every month I can't see how life would be so different if I didn't have to pay it? It's not a life changing amount of money and even over a couple of decades it still remains a small figure compared to how much you actually earn.
Even with no mortgage you still have to pay utility bills and protection money to your local cartel, I mean council. Plus food, fuel to get about, clothing etc., so you still need to have a comfortable income just to exist never mind live.
So is being mortgage free overrated?
For some context: 30 years old, 29 years left on the mortgage, the outstanding mortgage is 2x my gross annual income but only 9% of my salary goes to the mortgage.
Mods, if you can please leave this in the lounge because I want the opinion of Joe blogs, those that frequent the finance section are probably more financially conscious.
While I would love to not pay it every month I can't see how life would be so different if I didn't have to pay it? It's not a life changing amount of money and even over a couple of decades it still remains a small figure compared to how much you actually earn.
Even with no mortgage you still have to pay utility bills and protection money to your local cartel, I mean council. Plus food, fuel to get about, clothing etc., so you still need to have a comfortable income just to exist never mind live.
So is being mortgage free overrated?
For some context: 30 years old, 29 years left on the mortgage, the outstanding mortgage is 2x my gross annual income but only 9% of my salary goes to the mortgage.
Mods, if you can please leave this in the lounge because I want the opinion of Joe blogs, those that frequent the finance section are probably more financially conscious.
rufusgti said:
Calculate how much you spend a year on the mortgage, then ask yourself if you would rather use that money for holidays, cars, hobbies, restaurants and nights out. It's a bit obvious it's not overrated. Nobody likes paying their mortgage.
But at what cost? I could clear the mortgage a lot quicker if I lived off beans and rice for the next so many years.
The feeling of security knowing that you own 100% of your property and a building society or bank have no interest in it is very satisfying.
No matter how small your mortgage is, the fact you don't have to spend that money every month must mean you can spend the same amount on other things you can enjoy.
No matter how small your mortgage is, the fact you don't have to spend that money every month must mean you can spend the same amount on other things you can enjoy.
Just work out how much interest you'll repay over the term and that should be sobering enough for you to realise the sooner you clear it the better.
Why only pay 9% of your salary but have a 30 year term? Are you spending the rest elsewhere or saving it? If not spending it all on the good life then the sensible idea is to overpay and reduce the term.
Why only pay 9% of your salary but have a 30 year term? Are you spending the rest elsewhere or saving it? If not spending it all on the good life then the sensible idea is to overpay and reduce the term.
Edited by Toyoda on Friday 3rd November 21:07
boxst said:
For me the only thing it gave me was some peace of mind from a work perspective. If anything ever happens I don't have to worry about the house, it's all paid for.
The extra money is nice, but as you say it was only a smallish percentage of my salary so made little difference.
ThisThe extra money is nice, but as you say it was only a smallish percentage of my salary so made little difference.
No matter how bad things get I have a roof over my head. When I was unemployed for 3 months I got JSA only. Suddenly a mortgage payment is more than your income.
With no mortgage we could still eat.
So OP, if your employer offered you a 9% pay rise would you turn it down on the basis that having that extra money each month is overrated?
I would be paying as much off each month while interest rates are still low, they will only be going one way over the next few years and it would be a shame to miss the boat.
I would be paying as much off each month while interest rates are still low, they will only be going one way over the next few years and it would be a shame to miss the boat.
I went self employed after being made redundant 10 years ago.
I'd just paid the mortgage off (I'd been overpaying rather than saving and indeed I used some of the redundancy to clear the last little bit).
If I'd had (say) £700/month going out on a mortgage there's no way I could have risked it. As it was, utilities were a couple of hundred quid, plus a bit of food so I could (literally) afford to take a risk, and indeed afford not be earning much to begin with (which was a good thing, because I wasn't earning much).
So it was quite life changing for me, it allowed me to not worry about getting a proper salaried job which gave me the freedom to do something much better.
Paying off the mortgage was one of the best things I ever did, it gives you a different perspective knowing that (within reason), there's a roof over your head come what may.
I'd just paid the mortgage off (I'd been overpaying rather than saving and indeed I used some of the redundancy to clear the last little bit).
If I'd had (say) £700/month going out on a mortgage there's no way I could have risked it. As it was, utilities were a couple of hundred quid, plus a bit of food so I could (literally) afford to take a risk, and indeed afford not be earning much to begin with (which was a good thing, because I wasn't earning much).
So it was quite life changing for me, it allowed me to not worry about getting a proper salaried job which gave me the freedom to do something much better.
Paying off the mortgage was one of the best things I ever did, it gives you a different perspective knowing that (within reason), there's a roof over your head come what may.
I paid off my mortgage about 12 yrs ago. 
Just a brilliant feeling.
Then we moved to a bigger house so I got a new mortgage 10 yrs ago.
Then I cleared that about 6 yrs ago
My current house is the most expensive house I'll ever live in, even if I won the lotto tomorrow. So I'll never have another mortgage again. My next move, if at all, will be downsizing.
Just a brilliant feeling.Then we moved to a bigger house so I got a new mortgage 10 yrs ago.
Then I cleared that about 6 yrs ago
My current house is the most expensive house I'll ever live in, even if I won the lotto tomorrow. So I'll never have another mortgage again. My next move, if at all, will be downsizing.
BucksFizz said:
Surely the "its reassuring incase I lose my job" is alleviated by having say 6 months saving? I know I do.
But how can not having a mortgage and owning your own home not be a good thing?You might be surprised how quickly those 6 months will go if you are unemployed, and guaranteed that will be the time your boiler bursts or your roof leaks.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff