I paid off my mortgage today

[rossub]

Nah, you’d go onto SVR I reckon. I recall mine having a minimum £25k.

[jimmytheone]

rossub said:

Why is your cash earning sod all - even locking away for just a year can get 6%

Best easy access are nearing 5%

It was about to be spent but the PP got refused, second attempt under way.

[OldSkoolRS]

jimmytheone said:

rossub said:

Why is your cash earning sod all - even locking away for just a year can get 6%

Best easy access are nearing 5%

It was about to be spent but the PP got refused, second attempt under way.

At least stick it somewhere like one of the easy access savers. I happen to use Chip, but some don't like phone/App based banking. Even so similar deals of around 4.5% are available or more with restrictions on the number of withdrawals.

[jimmytheone]

mikey_b said:

Sure I read somewhere that having a mortgage company with an interest in the property helps protect you from certain types of ‘property theft’ where scammers somehow convince the land registry that they now own it, and cause untold problems. Mainly re-selling it again, from what I remember. Not 100% on the details, but that was the gist of it anyway. Seems reasonable insurance for what amounts to a few quid a year in repayments on the tiniest of mortgages.

Guess the bank owns it too, so theyd have to sign off a sale?

I've always paid down any debt as quickly as possible, and the mortgage is the biggest hurdle but its stuff like that ^ which makes me question it, so thanks for that

[swanseaboydan]

I think there is a nice feeling when you owe nothing

[Harry Flashman]

OldSkoolRS said:

At least stick it somewhere like one of the easy access savers. I happen to use Chip, but some don't like phone/App based banking. Even so similar deals of around 4.5% are available or more with restrictions on the number of withdrawals.

Just remember tax on savings. If you have a 5% mortgage and a non ISA 5% savings account, your not fully offsetting the mortgage, just taking down your effective rate.

[OldSkoolRS]

Harry Flashman said:

Just remember tax on savings. If you have a 5% mortgage and a non ISA 5% savings account, your not fully offsetting the mortgage, just taking down your effective rate.

Yes, good point. Sometimes I forget and apply my own situation instead of remembering others may be different.

Edited by OldSkoolRS on Saturday 5th August 22:05

[HustleRussell]

So can this be a rolling ‘I paid off my mortgage today’ thread?

See you in 35 years

(Hopefully all done in 25)

[rossub]

See you on 1st Feb 2027 hopefully…. day after the current 5 year fix ends.

Come to think of it, it was a 5 years and 3 months fix

Edited by rossub on Saturday 5th August 21:56

[Whatdoidonext]

Yep, see you back here in the future!

FWIW it has been a couple of months now since paying ours off and it has been transformative.

Our mortgage was relatively small (1/8th my take-home) and I'd never had a sleepless night over it, but just knowing the house is ours and our biggest outgoing is the council tax ... it's a wonderful feeling.

For those still on the journey I'm wishing you all get here some day!

[The Ferret]

Look forward to joining the club in 3.5 years time, and could probably just about do it today but we committed to a fixed term at 0.94% for 5 years 2 years ago and I’m fighting the urge to repay it, knowing the cash is better invested until the fixed term ends.

Just hope someone doesn’t spend it all before then, part of me says bite the bullet and pay it off while you can.

[swanseaboydan]

Do it - be free of the banks x x

[Harry Flashman]

Really? Or max the ISAs, and earn a load more money (even easier now, with a simple savings bond account, even after tax), then pay it off and use the bonus cash for something fun.

Easy to stop it being spent if you put it somewhere where getting it out loses you your interest.

[swanseaboydan]

Just for me it was more like ‘house is paid for - now for phase 2 ‘ . . You know that whatever risks you take in life , your house is paid for

[OldSkoolRS]

swanseaboydan said:

Just for me it was more like ‘house is paid for - now for phase 2 ‘ . . You know that whatever risks you take in life , your house is paid for

I was like you, but seeing the bit above about a very low interest rate on the mortgage fixed for another 3.5 years, then it makes more financial sense to keep it going and put money into savings that are currently giving a higher rate. In my case (last year) we were at around 5% on the variable rate mortgage, under 5 years to go and I had savings that I knew would shortly be replenished due to an upcoming lump sum. At the time the rates weren't as high as now, so it made sense to clear it, plus it meant that I have lower monthly outgoings which helped me retire early.

[rossub]

In a couple of months I’ll be earning more ££s in interest each month on my savings than the interest I’m paying out on the mortgage. This is despite the fact that my savings will be about a third of the mortgage balance.

I’d be mad to pay down the mortgage in that scenario - literally throwing money away. I doubt there’s ever been such a positive gap between mortgage and savings interest, so make the most of it while you can.

The banks would love you to pay off your 1% mortgage, so they can then lend that money out at 6%. Screw that.

[Rob_125]

In 5 years time our outstanding mortgage will be just under 90k. (Around 20% ltv depending on house prices).

Although not essential, it'd be nice to be in a position to clear the balance. With investment performance I think we may just be able to do it, however we will have to weigh up the pros and cons nearer the time. It very much a psychological milestone.

[tight fart]

I’m in the odd position of having the funds to clear our mortgage but can’t bring myself to.
We have just sold a btl the plan was to clear our mortgage, it has 3 years left on a fixed rate at 1.29%. Circa £140k but it has a 5% penalty if we pay it off.
So my plan is to try to place the money in safe investments.
(Still paying our mortgage and it’s reducing by around £750 a month)
So I’ve put £45k into 3 accounts, premium bonds, Tandem and ISA.
Currently standing at (since April)
Premium bonds £45,450
Tandem £45,481
& ISA = £46,790 (had some to start with but maxed out last year just before deadline and £20k this year so had £45k mid April)

[Dixy]

If you are paying 2% on a fixed rate mortgage and offer to settle early will they wave the early settlement figure as they can lend it elsewhere for more.

[rossub]

Dixy said:

If you are paying 2% on a fixed rate mortgage and offer to settle early will they wave the early settlement figure as they can lend it elsewhere for more.

Useful to know, thanks