No hurry to pay off the mortgage
Discussion
SkinnyPete said:
As soon as rates increase I'll make paying it off more of a priority.
News today that interest rates will rise in the near future.My fixed term ends in 6 months or so, no doubt interest rates will have increased then. If so I may sell my car to pay a lump sum off which will reduce my mortgage in half.
It was nice while it lasted.
SkinnyPete said:
SkinnyPete said:
As soon as rates increase I'll make paying it off more of a priority.
News today that interest rates will rise in the near future.My fixed term ends in 6 months or so, no doubt interest rates will have increased then. If so I may sell my car to pay a lump sum off which will reduce my mortgage in half.
It was nice while it lasted.
p1stonhead said:
SkinnyPete said:
SkinnyPete said:
As soon as rates increase I'll make paying it off more of a priority.
News today that interest rates will rise in the near future.My fixed term ends in 6 months or so, no doubt interest rates will have increased then. If so I may sell my car to pay a lump sum off which will reduce my mortgage in half.
It was nice while it lasted.
Interest rates are only likely to go back to the pre-Brexit 0.5% in Q4/Q1, I reckon it'll be well over 24 months (if not more) before they go back over 1%.
But think, 1% on a 500k mortgage is what, £416pm (plus capital) which isn't much at all really!?!?
Also look at the mortgage markets, it's unlikely that the rate rise will be factored in full, the mortgage market smooths forward forecasts of the projected yield curve, given the margins on lending are a lot higher vs. Previous gives me some indication that there is a bit of fat before we as homeowners feel the brunt.
YOLO, keep the car....well I would! Haha
kiethton said:
p1stonhead said:
SkinnyPete said:
SkinnyPete said:
As soon as rates increase I'll make paying it off more of a priority.
News today that interest rates will rise in the near future.My fixed term ends in 6 months or so, no doubt interest rates will have increased then. If so I may sell my car to pay a lump sum off which will reduce my mortgage in half.
It was nice while it lasted.
Interest rates are only likely to go back to the pre-Brexit 0.5% in Q4/Q1, I reckon it'll be well over 24 months (if not more) before they go back over 1%.
But think, 1% on a 500k mortgage is what, £416pm (plus capital) which isn't much at all really!?!?
Also look at the mortgage markets, it's unlikely that the rate rise will be factored in full, the mortgage market smooths forward forecasts of the projected yield curve, given the margins on lending are a lot higher vs. Previous gives me some indication that there is a bit of fat before we as homeowners feel the brunt.
YOLO, keep the car....well I would! Haha
Somewhere in the middle for me.
Kept the term high and so payments low but have chucked in any OT/Bonus into the overpayment pot. Basically thrown in any extra income and just lived on my basic wage.
We still do plenty of fun things and have reduced the term from 25yrs down to 15 over just 4yrs.
I probably wouldn't be able to sleep at night with a 35yr term and the lack of capital repayment on the annual mortgage papers would make me cry!!
Kept the term high and so payments low but have chucked in any OT/Bonus into the overpayment pot. Basically thrown in any extra income and just lived on my basic wage.
We still do plenty of fun things and have reduced the term from 25yrs down to 15 over just 4yrs.
I probably wouldn't be able to sleep at night with a 35yr term and the lack of capital repayment on the annual mortgage papers would make me cry!!
TLDR: changed my mind, decided to overpay
Well, I thought this would be an interesting thread to update, over three years later.
So in one of my original posts, I said I had £90k left to pay, and that I was more interested in living in the here and now than paying it off.
A few months after that post, I was made redundant, not the end of the world as I was looking for a new job anyway. Fortunately, I was able to start a new higher-paying role the following week.
Unfortunately, the joke was on me, as the environment was toxic, and I wouldn’t wish colleagues like that on my worst enemy. My happiness was severely affected, and I realised I couldn’t be held hostage to working in a job I hated, just because I had bills to pay.
I started to focus on clearing my mortgage and getting the hell out of there. After two years, I secured a new role (which I’m still thrilled with), and I have continued to overpay, sucking up the 3% early repayment charge.
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Sure I could have blasted the cash on my dream of owning an F430, and who knows what else, but I’ve still had a reasonably decent quality of life and have not lived on beans and rice.
Maybe I’ll update this thread in another couple of years to congratulate myself on being mortgage-free, we’ll see.
Well, I thought this would be an interesting thread to update, over three years later.
So in one of my original posts, I said I had £90k left to pay, and that I was more interested in living in the here and now than paying it off.
A few months after that post, I was made redundant, not the end of the world as I was looking for a new job anyway. Fortunately, I was able to start a new higher-paying role the following week.
Unfortunately, the joke was on me, as the environment was toxic, and I wouldn’t wish colleagues like that on my worst enemy. My happiness was severely affected, and I realised I couldn’t be held hostage to working in a job I hated, just because I had bills to pay.
I started to focus on clearing my mortgage and getting the hell out of there. After two years, I secured a new role (which I’m still thrilled with), and I have continued to overpay, sucking up the 3% early repayment charge.
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Sure I could have blasted the cash on my dream of owning an F430, and who knows what else, but I’ve still had a reasonably decent quality of life and have not lived on beans and rice.
Maybe I’ll update this thread in another couple of years to congratulate myself on being mortgage-free, we’ll see.
SkinnyPete said:
TLDR: changed my mind, decided to overpay
Well, I thought this would be an interesting thread to update, over three years later.
So in one of my original posts, I said I had £90k left to pay, and that I was more interested in living in the here and now than paying it off.
A few months after that post, I was made redundant, not the end of the world as I was looking for a new job anyway. Fortunately, I was able to start a new higher-paying role the following week.
Unfortunately, the joke was on me, as the environment was toxic, and I wouldn’t wish colleagues like that on my worst enemy. My happiness was severely affected, and I realised I couldn’t be held hostage to working in a job I hated, just because I had bills to pay.
I started to focus on clearing my mortgage and getting the hell out of there. After two years, I secured a new role (which I’m still thrilled with), and I have continued to overpay, sucking up the 3% early repayment charge.
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Sure I could have blasted the cash on my dream of owning an F430, and who knows what else, but I’ve still had a reasonably decent quality of life and have not lived on beans and rice.
Maybe I’ll update this thread in another couple of years to congratulate myself on being mortgage-free, we’ll see.
Glad you’re in a good situation now SkinnyPete. Well, I thought this would be an interesting thread to update, over three years later.
So in one of my original posts, I said I had £90k left to pay, and that I was more interested in living in the here and now than paying it off.
A few months after that post, I was made redundant, not the end of the world as I was looking for a new job anyway. Fortunately, I was able to start a new higher-paying role the following week.
Unfortunately, the joke was on me, as the environment was toxic, and I wouldn’t wish colleagues like that on my worst enemy. My happiness was severely affected, and I realised I couldn’t be held hostage to working in a job I hated, just because I had bills to pay.
I started to focus on clearing my mortgage and getting the hell out of there. After two years, I secured a new role (which I’m still thrilled with), and I have continued to overpay, sucking up the 3% early repayment charge.
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Sure I could have blasted the cash on my dream of owning an F430, and who knows what else, but I’ve still had a reasonably decent quality of life and have not lived on beans and rice.
Maybe I’ll update this thread in another couple of years to congratulate myself on being mortgage-free, we’ll see.
While there are arguments for/against deferred gratification, I think the feeling of financial and workplace freedom makes overpaying worthwhile.
While looking at savings accounts the other day, I realised that overpayment on my nationwide mortgage is mathematically almost no different than putting money in a savings account.
Can make later underpayments which can be thought of as the same thing as a withdrawal.
The interest payable on the mortgage is 1.6% whereas the best savings accounts are 1-1.5% so overpayment is getting me a better rate of return than a savings account.
The only obvious drawback is the inability to ‘withdraw’ all of it quickly. Otherwise, overpayment doesn’t seem like such a big decision.
Can make later underpayments which can be thought of as the same thing as a withdrawal.
The interest payable on the mortgage is 1.6% whereas the best savings accounts are 1-1.5% so overpayment is getting me a better rate of return than a savings account.
The only obvious drawback is the inability to ‘withdraw’ all of it quickly. Otherwise, overpayment doesn’t seem like such a big decision.
SkinnyPete said:
TLDR: changed my mind, decided to overpay
Well, I thought this would be an interesting thread to update, over three years later.
So in one of my original posts, I said I had £90k left to pay, and that I was more interested in living in the here and now than paying it off.
A few months after that post, I was made redundant, not the end of the world as I was looking for a new job anyway. Fortunately, I was able to start a new higher-paying role the following week.
Unfortunately, the joke was on me, as the environment was toxic, and I wouldn’t wish colleagues like that on my worst enemy. My happiness was severely affected, and I realised I couldn’t be held hostage to working in a job I hated, just because I had bills to pay.
I started to focus on clearing my mortgage and getting the hell out of there. After two years, I secured a new role (which I’m still thrilled with), and I have continued to overpay, sucking up the 3% early repayment charge.
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Sure I could have blasted the cash on my dream of owning an F430, and who knows what else, but I’ve still had a reasonably decent quality of life and have not lived on beans and rice.
Maybe I’ll update this thread in another couple of years to congratulate myself on being mortgage-free, we’ll see.
Your mental health is far more important than being a slave to a salary, you've been very sensible.........you are close to what most people dream of!! Good work!!Well, I thought this would be an interesting thread to update, over three years later.
So in one of my original posts, I said I had £90k left to pay, and that I was more interested in living in the here and now than paying it off.
A few months after that post, I was made redundant, not the end of the world as I was looking for a new job anyway. Fortunately, I was able to start a new higher-paying role the following week.
Unfortunately, the joke was on me, as the environment was toxic, and I wouldn’t wish colleagues like that on my worst enemy. My happiness was severely affected, and I realised I couldn’t be held hostage to working in a job I hated, just because I had bills to pay.
I started to focus on clearing my mortgage and getting the hell out of there. After two years, I secured a new role (which I’m still thrilled with), and I have continued to overpay, sucking up the 3% early repayment charge.
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Sure I could have blasted the cash on my dream of owning an F430, and who knows what else, but I’ve still had a reasonably decent quality of life and have not lived on beans and rice.
Maybe I’ll update this thread in another couple of years to congratulate myself on being mortgage-free, we’ll see.
SkinnyPete said:
Thanks for the comments.
I didn't want to jump on the mental health bandwagon, but I did feel physically sick somedays going into work on a Monday morning. I wouldn't wish it on anybody.
Health over wealth.I didn't want to jump on the mental health bandwagon, but I did feel physically sick somedays going into work on a Monday morning. I wouldn't wish it on anybody.
Even if it took longer to pay the mortgage offer, better to be a happier person than suffering for years.........well done!
It may not be the best financial move but there's something very contenting and reassuring about owning your house and the land it sits on.
That and I 'only' need about £350 a month to cover everything including the TVR insurance so the stress of having to earn X amount each month just to stay afloat is virtually gone.
That and I 'only' need about £350 a month to cover everything including the TVR insurance so the stress of having to earn X amount each month just to stay afloat is virtually gone.
SkinnyPete said:
The good news is my mortgage is now down to about £35k, and I feel very content with that.
Well done!! I was patting my self on the back recently for getting our mortgage down to below £350k!!Enjoy not been tied to the banks by a ball and chain. You've inspired me to restart overpaying ours
.ChocolateFrog said:
It may not be the best financial move but there's something very contenting and reassuring about owning your house and the land it sits on.
That and I 'only' need about £350 a month to cover everything including the TVR insurance so the stress of having to earn X amount each month just to stay afloat is virtually gone.
It's almost like career structures should be upside down. They should pay you more when you are young and starting out, but as you get older they should pay you less. When I was in my 20s with 2 toddlers and in my 30s with 2 teenagers money was tight and the house was small. Now they've gone, the space is more than we need. That and I 'only' need about £350 a month to cover everything including the TVR insurance so the stress of having to earn X amount each month just to stay afloat is virtually gone.
Pit Pony said:
It's almost like career structures should be upside down. They should pay you more when you are young and starting out, but as you get older they should pay you less. When I was in my 20s with 2 toddlers and in my 30s with 2 teenagers money was tight and the house was small. Now they've gone, the space is more than we need.
A way is convince you parents to swap houses they give you the big home and move them into the flat/2 bed terrace. ......An early poster mentioned MIRAS as "paying the mortgage". Hardly. It gave tax relief on the interest on the first
£30k of the mortgage.
I had my first mortgage in 1971 when I was earning about £1700 per annum & my wife about £2000. Mortgage was 100% of £5750 house price at 10% interest rate.
Next 2 house purchases were funded by a £7000 endowment mortgage and then added a £5000 endowment mortgage.
The next move added a term mortgage.
A change of job gave a decent salary plus quarterly commission & bonuses. We lived off the salary & used the bonuses & commission to pay down the mortgage by £12k per year. After mortgage paid off our endowment policies (for £5k & £7k) paid out a total of £27k. So debt free with decent savings, & 2 daughters left home, by 54 years old.
£30k of the mortgage.
I had my first mortgage in 1971 when I was earning about £1700 per annum & my wife about £2000. Mortgage was 100% of £5750 house price at 10% interest rate.
Next 2 house purchases were funded by a £7000 endowment mortgage and then added a £5000 endowment mortgage.
The next move added a term mortgage.
A change of job gave a decent salary plus quarterly commission & bonuses. We lived off the salary & used the bonuses & commission to pay down the mortgage by £12k per year. After mortgage paid off our endowment policies (for £5k & £7k) paid out a total of £27k. So debt free with decent savings, & 2 daughters left home, by 54 years old.
Good to hear.
I'm only a couple of years into a 30 year term but have decided to invest my spare and hopefully beat the market.
I've a reasonable pension so I've a quandary over trying to pay it off or enjoying life now and using the (hopefully still available) tax free lump sum to clear the balance.
Regardless, It would be nice if I could get to a point the balance owed was sports car money rather than super car money.
I'm only a couple of years into a 30 year term but have decided to invest my spare and hopefully beat the market.
I've a reasonable pension so I've a quandary over trying to pay it off or enjoying life now and using the (hopefully still available) tax free lump sum to clear the balance.
Regardless, It would be nice if I could get to a point the balance owed was sports car money rather than super car money.
Rick101 said:
Good to hear.
I'm only a couple of years into a 30 year term but have decided to invest my spare and hopefully beat the market.
I've a reasonable pension so I've a quandary over trying to pay it off or enjoying life now and using the (hopefully still available) tax free lump sum to clear the balance.
Regardless, It would be nice if I could get to a point the balance owed was sports car money rather than super car money.
Out of interest what age are you?I'm only a couple of years into a 30 year term but have decided to invest my spare and hopefully beat the market.
I've a reasonable pension so I've a quandary over trying to pay it off or enjoying life now and using the (hopefully still available) tax free lump sum to clear the balance.
Regardless, It would be nice if I could get to a point the balance owed was sports car money rather than super car money.
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