Paying off your mortgage
Discussion
Pickled Piper said:
Nothing special about being mortgage free if your house is only worth £80,000,
That all depends if you spend much time there or your extra disposable income because you don't have a mortgage lets you travel the world going on exotic holidays for 6 months of the year. It all depends what you want out of life if being mortgage / rent free one could live on a boat for peanuts.
BoRED S2upid said:
That all depends if you spend much time there or your extra disposable income because you don't have a mortgage lets you travel the world going on exotic holidays for 6 months of the year.
It all depends what you want out of life if being mortgage / rent free one could live on a boat for peanuts.
Exactly right..... My house is very modest, (under £180k) but it suits our needs..... And why do I need a fancy pad, when currently I'm typing this from my motorhome (bought with mortgage savings) in the south of FranceIt all depends what you want out of life if being mortgage / rent free one could live on a boat for peanuts.
t shirt and shorts today...Been here since the beginning of Jan, not coming back till April time.... Stay at home for a few weeks, then off again...
Like you say, it's all about what you want out of life..... At the moment I want to be anywhere but the UK, because being there in winter isn't good for my well being
it must be getting a bit manky by nowLunablack said:
currently I'm typing this from my motorhome (bought with mortgage savings) in the south of France t shirt and shorts today...
Been here since the beginning of Jan, not coming back till April time.... Stay at home for a few weeks, then off again...
Reading that made my day t shirt and shorts today...Been here since the beginning of Jan, not coming back till April time.... Stay at home for a few weeks, then off again...
matc said:
What position are others in and is being 'debt free' a big goal for most?
I'm 60 this year, am now down to mere millions in debt, and would have vastly more debt if I could.I don't even have a personal bank account, never mind savings, nor do I have a pension, an ISA or any form of paper investment products.
Right now, I have £7 in total personal cash asset. 3x£2 coins, and 1x£1 coin. I had £25 earlier on, but had the day car mini valeted at my carwash and paid for that plus tip, plus a £6 bill for a snack for me and a chum who popped round to the office at teatime.
groak said:
I'm 60 this year, am now down to mere millions in debt, and would have vastly more debt if I could.
I don't even have a personal bank account, never mind savings, nor do I have a pension, an ISA or any form of paper investment products.
Right now, I have £7 in total personal cash asset. 3x£2 coins, and 1x£1 coin. I had £25 earlier on, but had the day car mini valeted at my carwash and paid for that plus tip, plus a £6 bill for a snack for me and a chum who popped round to the office at teatime.
Yes, but since you have a 430 and are upgrading to 458 I am assuming you could have plenty of cash if needbe. are they run through businesses? What do you do for day to day cash. Personal dinners, personal holidays etc. Surely everything is not run through business.I don't even have a personal bank account, never mind savings, nor do I have a pension, an ISA or any form of paper investment products.
Right now, I have £7 in total personal cash asset. 3x£2 coins, and 1x£1 coin. I had £25 earlier on, but had the day car mini valeted at my carwash and paid for that plus tip, plus a £6 bill for a snack for me and a chum who popped round to the office at teatime.
king hate dinner parties. That is all.Gazzas86 said:
Yea true, you have to wash up, i hate washing up
Takeaway with friends and beers. Everything into a bin bag in the morning. Washing up is not an issue (dishwasher) however, inviting someone to a 'dinner party' seems to make people act somewhat different to they would normally (come dine with me)...
We (OH and me) have started OPing the mortgage to clear it, there are just the two of us and we have no kids (and don't plan or want them). For us we want to clear it in the next ten years, but are planning on sooner. Reason we want to clear it is we want to work less once we are mortgage free, say 3-4 days a week. As we don't have any dependants we don't want to have a string of buy to lets or other assets to pass on because what would be the point, we would rather have the security of having the house (and the associated mortgage debt) paid off so we can go on holiday, afford to run gas guzzling cars and generally have a better quality of life.
It is quite a personal thing and not everyone wants to go down the same road, or have different goals and you do need a balance between having a life and paying off the mortgage becoming the be all and end all. I think we will be in a great position in a couple of years but we don't go without things we are just a bit more careful than some and don't take on anymore debt, so no credit cards, loans, HP, etc and save instead, sure it takes a bit longer to get things but they are things we actually want and need. My 2 pence worth!
It is quite a personal thing and not everyone wants to go down the same road, or have different goals and you do need a balance between having a life and paying off the mortgage becoming the be all and end all. I think we will be in a great position in a couple of years but we don't go without things we are just a bit more careful than some and don't take on anymore debt, so no credit cards, loans, HP, etc and save instead, sure it takes a bit longer to get things but they are things we actually want and need. My 2 pence worth!
birdcage said:
The thing that has always struck me about this is fine to pay off the mortgage but when do you stop moving?
When do you decide the house you live in is 'the' house...I am 37 and I still reckon I have two or three moves ahead of me leading to bigger and usual term mortgages.
I think this is part of the key, once you are living somewhere you want to be for the long term then set about paying off. Your personal circumstances might change where the forever house isn't the forever house anymore but if the mortgage interest is costing you more than the interest received from and savings (not including any ready cash for emergencies) you should be better off.When do you decide the house you live in is 'the' house...I am 37 and I still reckon I have two or three moves ahead of me leading to bigger and usual term mortgages.
Gazzas86 said:
... this house im in at the moment 'isnt the one', i.e. i plan on moving 3 times etc upsizing every time, and thus increasing my mortgage each time now doubt.
Why don't you just buy 'the one' straight off, and save several sets of moving fees and a lot of stamp duty?And you've already got a 30yr mortgage...
More generally, it used to be seen as daft to pay off your mortgage early as inflation over the last 25 years made the monthly payments so small.
However, people who don't overpay their mortgages at the moment while interest rates are so low, will be kicking themselves if/when rates ramp up again.
I'm only in a small flat, but given the ongoing economic turmoil and job uncertainty, I've taken a very conservative approach in recent years. I'd like a bigger place, but I want to be in the best possible situation as and when that decision is made, so the last three or so years have been spent battening down assorted hatches and getting some savings built up. That's now at a point I'm happy with, so attention has turned to the mortgage, which I'm now overpaying. Just turned 38, so the target at the moment is to be net mortgage free by 40 then see where things stand. In the position of not knowing what I want, but knowing what I don't want (if that makes sense?), so intention is to have the best possible financial situation with which to make decisions, even though I don't know what those decisions might be currently. Come off a fix in a few months, so currently mulling what to do. Offset could be useful, but I also like the security of a fixed rate. LTV will be ~50%, so hopefully should be some decent deals out there!
Do I avoid being dull (probably not 
)?
I'm 50 in May and my endowment policy matures (unlike me) in July - Fingers crossed it'll be enough to cover the outstanding mortgage and we'll be paid up.
Of course, as I'm paying well under £100 a month for my mortgage interest at the moment, it's not likely to make much difference to my disposable income
Will be nice to say I OWN my house at last though...
M
)?I'm 50 in May and my endowment policy matures (unlike me) in July - Fingers crossed it'll be enough to cover the outstanding mortgage and we'll be paid up.
Of course, as I'm paying well under £100 a month for my mortgage interest at the moment, it's not likely to make much difference to my disposable income
Will be nice to say I OWN my house at last though...
M
I'm currently overpaying by about £3k a year, the reason is that my rate is currently 1.29%, so I'd rather chuck money at it now than in a few years when rates start rising again and the bank takes a bigger cut. When the BOE rate started dropping I just kept paying the same as I was..
At the current rate I'll be clear in this decade - I might increase payments a bit to get rid quicker.
Even £100 a month can help.
I'm happy enough here, don't really need anything more. If that changes in the future I'll be in a fairly good position, if it doesn't I'll have a decent amount of disposable cash to invest for retirement ( thats still a long way away..).
I'm not a slave to it, I generally buy what I want, when I want.
At the current rate I'll be clear in this decade - I might increase payments a bit to get rid quicker.
Even £100 a month can help.
I'm happy enough here, don't really need anything more. If that changes in the future I'll be in a fairly good position, if it doesn't I'll have a decent amount of disposable cash to invest for retirement ( thats still a long way away..).
I'm not a slave to it, I generally buy what I want, when I want.
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