Any down side to paying a mortgage off?
Discussion
bompey said:
Pay it off and sleep soundly. When interest rates rise you can be even more smug!
They have got to rise,they can not get any lower.People like me want interest rates to rise.Its a double whammy for us old farts who had mortgages for years,paid them off and now rely on income from savings.
I can remember my mortgage interest rate going over 14% !!!!! now I`m lucky to get 3% on my savings.
Happy new year all,I`m off down the pub.I`m not that old and still fit enough to sink a skin full.
BoRED S2upid said:
I'd be inclined to leave a tiny bit though a few hundred quid spread over 5 years just to annoy the bank a little.
Nationwide used to let you overpay but not fully pay off the balance, leaving a £1 notional amount left for the rest of the mortgage term. During that time you could draw down any of the overpayment if you wanted. Then they got clever and told anyone with a £1 balance that they were just going to close the account.So I drew down £9 and extended the mortgage term for the maximum they would let me.
Now for the next 20 or so years they have to process a Direct Debit of 5p per month.
PF62 said:
Nationwide used to let you overpay but not fully pay off the balance, leaving a £1 notional amount left for the rest of the mortgage term. During that time you could draw down any of the overpayment if you wanted. Then they got clever and told anyone with a £1 balance that they were just going to close the account.
So I drew down £9 and extended the mortgage term for the maximum they would let me.
Now for the next 20 or so years they have to process a Direct Debit of 5p per month.
5p a month mortgage repayments I like it! So I drew down £9 and extended the mortgage term for the maximum they would let me.
Now for the next 20 or so years they have to process a Direct Debit of 5p per month.
Why not have an offset mortgage. You have say £100K owing on your mortgage, and £100k in a linked savings account. So you pay no interest, just the monthly capital repayment, which you can pay from your £100K savings account.
Costs you nothing, you can still sleep knowing in reality you don't own anything to anyone because you could pay it off with a few clicks of your mouse, but you also know that should some kind of disaster strike, you have instant access to all your money.
Costs you nothing, you can still sleep knowing in reality you don't own anything to anyone because you could pay it off with a few clicks of your mouse, but you also know that should some kind of disaster strike, you have instant access to all your money.
Jimboka said:
I'm keeping my offset mortgage @ BOE + .5% (since 2008) as my savings earn more.
There is a fair chance they will offer to 'buy' me out of it soon as they are losing on the deal..
Has there been any examples of banks 'buying' out cheap mortgages? I too have a similar deal (though not quite as good as yours).There is a fair chance they will offer to 'buy' me out of it soon as they are losing on the deal..
I have a Barclays lifetime tracker at 0.18% over BoE. Got it back in around 2006 and I've not heard of any attempts to "buy" folks out of it.
In fact I moved in 2011 and ported the mortagage to the new property and took full advantage of the 6 month porting rules (ie I sold up before buying the new place and had 6 months to port). So, if they had wanted to, they had plenty of chances to prevent me taking the mortgage.
In fact I moved in 2011 and ported the mortagage to the new property and took full advantage of the 6 month porting rules (ie I sold up before buying the new place and had 6 months to port). So, if they had wanted to, they had plenty of chances to prevent me taking the mortgage.
TheLordJohn said:
TR4man said:
Pay it off and sleep very soundly at night.
It's a wonderful feeling knowing that you don't owe a penny to anyone.
Ha, this is hilarious.It's a wonderful feeling knowing that you don't owe a penny to anyone.
My Dad's the same - "I don't owe anyone a penny".
Yeah, apart from your share or £5 trillion national debt.
In theory the Gov could implement a new property tax. Didn't that happen in "Gone With The Wind?"
HenryJM said:
Guvernator said:
You might own every brick but technically the queen still owns the land it's sitting on! 
Not in the UK she doesn't.jdw1234 said:
And council tax and utility bills.
In theory the Gov could implement a new property tax. Didn't that happen in "Gone With The Wind?"
That's why your property is a "freehold estate" - it is not absolute ownership of the land but a right to act as if you absolutely own it.In theory the Gov could implement a new property tax. Didn't that happen in "Gone With The Wind?"
Has anyone bothered to ask you whether there are any penalties for paying off early? We have always overpaid on our mortgage, without penalty. We then had the opportunity to pay off a larger sum, and did so fully aware that there would be penalties. Given the current amount outstanding we have decided not to pay it off as the penalty for doing so is not much less than the interest that will be charged and so it is sort of cheap money.
If by any chance you had the ability to earn more on the money than you were paying in interest on the mortgage, or had higher cost debts like a credit card or something then it might make sense to look at those first.
If by any chance you had the ability to earn more on the money than you were paying in interest on the mortgage, or had higher cost debts like a credit card or something then it might make sense to look at those first.
Gassing Station | Finance | Top of Page | What's New | My Stuff