I paid off my mortgage today
Discussion
Nice on OP I remember paying mine off some years back and then re borrowing to buy a 2nd property.
We are in the process of moving so it’ll be paid off again with no plans to renew as my fixed 1% deal ends in December.
Not a large mortgage by modern standards but be good to never take a mortgage again.
Will also be selling the 2nd property within the next year too .
We are in the process of moving so it’ll be paid off again with no plans to renew as my fixed 1% deal ends in December.
Not a large mortgage by modern standards but be good to never take a mortgage again.
Will also be selling the 2nd property within the next year too .
All i got was this letter back in 2016, I didn’t do anything else 
I’ve enjoyed being mortgage free for 7 years, and saved up more cash than I’ve ever had, but like the above poster I’m currently applying for a mortgage to move to a new property and rent out my mortgage free one.
I’m sure I could’ve done better with proper advice, but I’ve never really had a future plan to work towards.
I’ve enjoyed being mortgage free for 7 years, and saved up more cash than I’ve ever had, but like the above poster I’m currently applying for a mortgage to move to a new property and rent out my mortgage free one.
I’m sure I could’ve done better with proper advice, but I’ve never really had a future plan to work towards.
BAMoFo said:
Congratulations OP, you have managed to get yourself out of the hamster wheel. Many people have done exceptionally in the past by leveraging debt, but I doubt that will continue to the same degree in the future unless much longer term mortgages become available. I think that some people have different views to you because they are trying to convince themselves that they are doing the right thing.
Doing the right thing is an interesting statement.In my own experience, I thought I've been generally making the right decisions, a key one being starting a pension very early, not going too mad on trying to pay the mortgage off but trying to achieve a good balance.
My missus eventually convinced me to actually start looking at life differently, not so focused on the future but the here and now.
'we're gonna need a bigger boat' is typically the man thing to say but it was the missus driving that. I was content with a low powered fishing style boat, not expensive and cheap to run. She got us looking at bigger and better. That was last year.
Then this year, she decided we should get a caravan/lodge on a Lough with a mooring for the boat.
The 2 spends were enough to pay off basically our entire mortgage but as it's fixed for another couple of years at a low rate I just went, you know what, you're right.
We've 2 kids and we should have some extra fun and make some good memories. I though the odd holiday abroad was enough to tick that box.
A bit of an epiphany if you like. I guess in a nutshell, I've been financially prudent so that I can have some fun 'someday'
The missus was like, that day should be now. And in all my 'wisdom' I'm starting to think I wasn't quite as wise as I thought I was, and let a few good years pass me by a little.
Nice one OP, great goal achieved.
Not saying this is or was your situation but there is a lot to be said for being content with your plot, and not wanting ever bigger houses, and bigger mortgages equaling more debt.
Mad times at the moment for mortgages and feel for many simply trying to get on the ladder, let alone clearing their mortgage, so I commend your achievement again.
Not saying this is or was your situation but there is a lot to be said for being content with your plot, and not wanting ever bigger houses, and bigger mortgages equaling more debt.
Mad times at the moment for mortgages and feel for many simply trying to get on the ladder, let alone clearing their mortgage, so I commend your achievement again.
Edited by 7 5 7 on Tuesday 6th June 08:46
GT3Manthey said:
Nice on OP I remember paying mine off some years back and then re borrowing to buy a 2nd property.
I did similar, bought my first house in year 200 for £63k, paid it off in 7yrs and enjoyed being mortage free for a short while and having an extra £350 to spend each month. But I couldn't get over the feeling of wasting money by buying myself things I didn't need, so we decided to move to a bigger house in a nicer area and started with another 25yr mortgage, but this time for £140k, which I plan to have paid off in 4yrs time for when I retire.I'll then be considering moving to a smaller house to free up some money to help my son buy his first house.
I paid my mortgage off in Feb 2022, at the age of 65. I had my first mortgage in 1978 for £10,999 for a new build 2 bed in Hampshire. Survived (just, but was hard going) the 80's 15% mortgage rate ( had moved in 1982 to a bigger house, bigger mortgage). Got divorced (ex still in the house, which I had also paid off) and had to start all over again in 2010 with a new mortgage on a fixer up cottage in Somerset, paid the mortgage in 12years. Great feeling.
Interesting in not upgrading houses. I don't agree - you only live once, and for me, the home I come back to is really, really important. I realise that not everyone feels the same, and respect that.
We pushed ourselves to buy the house we wanted, close to my work. It won't be our last house, but will do us until the kids have left home, about twenty years from now. It is big enough, has a decent garden, and off street parking.
Yes, I could have stayed iny three bedroom flat, mortgage free, round the corner and raised the family there. I would have had lots of spare money for lots of things.
But the thing I wanted most was this house, and I love it. Worth the debt and corresponding interest payments, frankly. OK, put circumstances allow this debt to be not crippling, so I get that it's a different equation for others. But for us, the big family house was an absolute priority.
We pushed ourselves to buy the house we wanted, close to my work. It won't be our last house, but will do us until the kids have left home, about twenty years from now. It is big enough, has a decent garden, and off street parking.
Yes, I could have stayed iny three bedroom flat, mortgage free, round the corner and raised the family there. I would have had lots of spare money for lots of things.
But the thing I wanted most was this house, and I love it. Worth the debt and corresponding interest payments, frankly. OK, put circumstances allow this debt to be not crippling, so I get that it's a different equation for others. But for us, the big family house was an absolute priority.
Is clear that some people are house people. Some car people, some other things etc (some have the lot!). There’s many examples of people I’ve seen on here with fairly modest looking places with 6 figures of cars on the drive. And in reverse I’m sure there’s many on here with 7 figures of houses with fairly nothing cars.
Property always will be immensely more interesting to me than cars I’ve come to realise.
Property always will be immensely more interesting to me than cars I’ve come to realise.
okgo said:
Is clear that some people are house people. Some car people, some other things etc (some have the lot!). There’s many examples of people I’ve seen on here with fairly modest looking places with 6 figures of cars on the drive. And in reverse I’m sure there’s many on here with 7 figures of houses with fairly nothing cars.
Property always will be immensely more interesting to me than cars I’ve come to realise.
lot of oil workers up her and always surprising seeing a gt3rs parked in driveway of parents house where son stays and spends all his money on cars or fisherman driving a lambo around town centre-for me way too much money to spend on carProperty always will be immensely more interesting to me than cars I’ve come to realise.
okgo said:
Is clear that some people are house people. Some car people, some other things etc (some have the lot!). There’s many examples of people I’ve seen on here with fairly modest looking places with 6 figures of cars on the drive. And in reverse I’m sure there’s many on here with 7 figures of houses with fairly nothing cars.
Property always will be immensely more interesting to me than cars I’ve come to realise.
Exactly the same as you. But I respect folk who'd rather have a modest house and drive a Ferrari. Good for them! I wish I could have both the big house and the 296, frankly! But stuff like school fees ad holidays take priority over cars. And out home is the big one for us. I actually miss the place whilst on hols, and that is great. We love coming home to it.Property always will be immensely more interesting to me than cars I’ve come to realise.
So big mortgage whilst we could afford it was the thing we did. I won't pretend it didn't give me some worry, but it was a very conscious decision at the time, when loans were cheap and we could get it done.
I don't think I'd take out a mortgage of that size now. It was an opportunity in 2017, at 0.99% on a long term fix. As others did, rather than overpay it, I used the money to make more than that rate elsewhere, to build a slush fund for debt repayment. That worked well. I effectively have run an offset mortgage for 10 years and across two houses, but taking more risk as rather than a true offset, the "hedge" was investing the overpayment monies myself, pretty passively but effectively.
That opportunity doesn't exist in a +5% rate environment and choppy equity markets bereft of QE. So time to change strategy. That's fine with me.
Still no bloody Ferrari though. First world problems, cry me a river etc.
Edited by Harry Flashman on Tuesday 6th June 10:05
Edited by Harry Flashman on Tuesday 6th June 10:07
Harry Flashman said:
Exactly the same as you. But I respect folk who'd rather have a modest house and drive a Ferrari. Good for them! I wish I could have both the big house and the 296, frankly! But stuff like school fees ad holidays take priority over cars. And out home is the big one for us. I actually miss the place whilst on hols, and that is great. We love coming home to it.
So big mortgage whilst we could afford it was the thing we did. I won't pretend it didn't give me some worry, but it was a very conscious decision at the time, when loans were cheap and we could get it done.
I don't think I'd take out a mortgage of that size now. It was an opportunity in 2017, at 0.99% on a long term fix. As others did, rather than overpay it, I used the money to make more than that rate elsewhere, to build a slush fund for debt repayment. That worked well. I effectively have run an offset mortgage for 10 years and across two houses, but taking more risk as rather than a true offset, the "hedge" was investing the overpayment monies myself, pretty passively but effectively.
That opportunity doesn't exist in a +5% rate environment and choppy equity markets bereft of QE. So time to change strategy. That's fine with me.
Still no bloody Ferrari though. First world problems, cry me a river etc.
No Ferrari also but managed to tick that box a few years back.So big mortgage whilst we could afford it was the thing we did. I won't pretend it didn't give me some worry, but it was a very conscious decision at the time, when loans were cheap and we could get it done.
I don't think I'd take out a mortgage of that size now. It was an opportunity in 2017, at 0.99% on a long term fix. As others did, rather than overpay it, I used the money to make more than that rate elsewhere, to build a slush fund for debt repayment. That worked well. I effectively have run an offset mortgage for 10 years and across two houses, but taking more risk as rather than a true offset, the "hedge" was investing the overpayment monies myself, pretty passively but effectively.
That opportunity doesn't exist in a +5% rate environment and choppy equity markets bereft of QE. So time to change strategy. That's fine with me.
Still no bloody Ferrari though. First world problems, cry me a river etc.
Edited by Harry Flashman on Tuesday 6th June 10:05
Edited by Harry Flashman on Tuesday 6th June 10:07
Happy that soon I’ll be mortgage free once again ( especially as my 1% deal ends in January) and not be re financing at current rates. Maybe better to be lucky that smart as they say !
House sold well too so now being a cash buyer we’re hopefully sitting pretty and will be taking out cash.
Good luck everyone it’s a very uncertain time
okgo said:
Is clear that some people are house people. Some car people, some other things etc (some have the lot!). There’s many examples of people I’ve seen on here with fairly modest looking places with 6 figures of cars on the drive. And in reverse I’m sure there’s many on here with 7 figures of houses with fairly nothing cars.
Property always will be immensely more interesting to me than cars I’ve come to realise.
Same here, when I was younger I was obsessed with the car I drove, if I could go back in time I would have given myself a slap and told myself to buy property immediately.Property always will be immensely more interesting to me than cars I’ve come to realise.
I drive my car for maybe 2 or 3 hours a week, for those other 165 hours a week it doesn't matter if I have a shed or a Ferrari parked outside.
Property every time for me, nothing nicer than coming home to a nice house. I cannot imagine the thinking of those people that live on a council estate yet have two new German cars on the drive.
It's quite frightening to look at the cost of interest now. On a £200k loan (not a huge amount these days) you'll now typically be paying £10k a year just on the interest compared to the roughly £2k it's been costing until recently.
After buying for the first time in 2007 I've been extremely cautious since the financial crash of 2008, it made me determined to clear my mortgage ASAP. I took on a bit extra in 2017 when we moved to a much nicer place but as of November I'll have the full amount in an offset account. It's a really nice feeling and it's made me open the taps on my spending a little bit as I'm not now thinking the money should be going to clear my mortgage debt.
After buying for the first time in 2007 I've been extremely cautious since the financial crash of 2008, it made me determined to clear my mortgage ASAP. I took on a bit extra in 2017 when we moved to a much nicer place but as of November I'll have the full amount in an offset account. It's a really nice feeling and it's made me open the taps on my spending a little bit as I'm not now thinking the money should be going to clear my mortgage debt.
Well done OP. You must be feeling much lighter without the responsibility of a mortgage.
I am spending more on the house renovations and extension going on at the moment than the outstanding amount of my mortgage by about 50/60k.
Mortgage fix ends May 2024 and I am bricking it a little tbh but hopefully will be in a better paid job in a few months which should help with mortgage increase. The house renovation and extension costs do not make financial sense at all: I'll probably only get back 50p in the £ if I sold up once done but hopefully they will add to our lives in more ways than money in the bank could.
I am spending more on the house renovations and extension going on at the moment than the outstanding amount of my mortgage by about 50/60k.
Mortgage fix ends May 2024 and I am bricking it a little tbh but hopefully will be in a better paid job in a few months which should help with mortgage increase. The house renovation and extension costs do not make financial sense at all: I'll probably only get back 50p in the £ if I sold up once done but hopefully they will add to our lives in more ways than money in the bank could.
Congrats OP. Paid mine off last Thursday.... Fixed rate came to an end and repayments were going to go up massively.
Pension fund was going one way, mortgage the other, so I took my 25% tax free lump sum out and paid it off.
Interestingly, the 25% tax free amount was exactly the outstanding mortgage amount - must have been a sign!!
So that's step one towards retiring early....
Pension fund was going one way, mortgage the other, so I took my 25% tax free lump sum out and paid it off.
Interestingly, the 25% tax free amount was exactly the outstanding mortgage amount - must have been a sign!!
So that's step one towards retiring early....
bhippy said:
Congrats OP. Paid mine off last Thursday.... Fixed rate came to an end and repayments were going to go up massively.
Pension fund was going one way, mortgage the other, so I took my 25% tax free lump sum out and paid it off.
Interestingly, the 25% tax free amount was exactly the outstanding mortgage amount - must have been a sign!!
So that's step one towards retiring early....
Nice work . Pension fund was going one way, mortgage the other, so I took my 25% tax free lump sum out and paid it off.
Interestingly, the 25% tax free amount was exactly the outstanding mortgage amount - must have been a sign!!
So that's step one towards retiring early....
Hopefully be seeing you on the ‘Enjoying Retirement’ thread soon
Joey Deacon said:
Property every time for me, nothing nicer than coming home to a nice house. I cannot imagine the thinking of those people that live on a council estate yet have two new German cars on the drive.
Can't you have a nice house in a council estate?I walk my dog various routes and often through a local council estate. Its quite nice, flanked by a river, open fields and a golf course, depending on what part you are in.
Some of the properties have nice extentions too and some lovely gardens. Some of the gardens are very generous, and much more generous than the typical new build we often see these days.
One of the more desirable 'non council' areas in town has an 80% premium on a sqft v sqft basis. Red brickwork versus rough render on the council houses is a different kerb appeal, granted....but once inside, they could easily be level par or, with no 80% premium to pay, might actually be a lot nicer inside, as they've more cash left to do up the house and buy nice cars? Plus quite a lot of them have good amount of space in the gardens.
I often ask my dog 'do you like walking around here, by the river, or by the golf course, or by the greenfields?' I certainly enjoy the walk
But to touch on a bit of a theme on the thread, its not all so clear cut, depending on your perspective. If kerb appeal doesn't mean much to you, but the interior does, you then ask yourself why is there that 80% premium to buy the house with a red brick exterior, short driveway and tiny garden with a lovely view of your nextdoor neighbour, no matter what window you look out?
Its nothing to do with social behaviour. I've lived in this town for 47 years and I've walked this estate for the last 9 and its a nice spot so I can see why someone would want to buy a much cheaper house here and have lots more cash to do other things as a result. I also wonder what extra you really get for that 80% premium. Is kerb appeal really worth that much? Because once inside, you don't actually look at your red bricks.
Top photo is the non council with 80% premium
Bottom photo is council estate
redrabbit29 said:
This makes me concerned about the 31 years I have left. £350k of debt. 3 more years at 1.7% and then god knows what
Our monthly payment is £1270. So if it does go up to 4-5% it will be quite a bit more to cover each month
Overpay as much as you possibly can during the next 3 years, that way the amount you'll need to refinance will be reduced as much as possible and will help the future you. Even if it's only £20 a month it all helps to bring the capital down on which you'll be paying that potential 4%-5%.Our monthly payment is £1270. So if it does go up to 4-5% it will be quite a bit more to cover each month
Best thing I ever did was keep upping my mortgage payments instead of having new cars or fancy holidays. I was mortgage free by the age of 45 and I didn't buy my first house until I was 25.
I sort of messed it all up when we relocated 8 years ago so after being mortgage free for almost 10 years we took on the largest mortgage we had ever had. However, we have been fortunate in that the house price increase where we live has meant it was a good investment and as we look to relocate back and downsize, we'll end up with no mortgage in a nice pot towards the pension years.
Always, always overpay your repayment mortgage if/when you can afford to. You can always liberate equity at a later date if needed and it will save a lot in interest charges.
Well done OP.
soupdragon1 said:
Can't you have a nice house in a council estate?
I am probably biased as I lived on a council estate for the first 23 years of my life. The first thing I said to the Estate Agent when I was looking to buy my first property in 2000? "Don't send me any ex council houses"No way am I working for 25+ years to pay the mortgage so I can live next door to someone who was given it for free.
That is the reason they are 80% more expensive, and despite what you think there is definitely a stigma for living on a Council Estate.
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