Chance to get rid of the mortgage
Discussion
Our mortgage is 27k svr so no early repayment charges.
I've just been left 25k in a will , would i be mental to anything other than use 2k of my savings and pay off my mortgage ?
We've kind of mulled over turning the conservatory into a orangery so it's useable year round but to be honest i'm not really that fussed and the thought of being 44 with no mortgage is more appealing.
Lastly if we get rid of the mortgage do we still need the same / any life insurance if we have no mortgage.
I've just been left 25k in a will , would i be mental to anything other than use 2k of my savings and pay off my mortgage ?
We've kind of mulled over turning the conservatory into a orangery so it's useable year round but to be honest i'm not really that fussed and the thought of being 44 with no mortgage is more appealing.
Lastly if we get rid of the mortgage do we still need the same / any life insurance if we have no mortgage.
Depends.
If you already have good savings incl 6 months expenses, some investments, pension provision etc then I would say yes.
If you don't have any of the above I would say no.
It may be better in the long term to look at S&S ISA which will (possibly) bring a better ROI than the current interest on the SVR.
Personally I would not spend it on building a greenhouse
Your ROI is going to be zero.
If you already have good savings incl 6 months expenses, some investments, pension provision etc then I would say yes.
If you don't have any of the above I would say no.
It may be better in the long term to look at S&S ISA which will (possibly) bring a better ROI than the current interest on the SVR.
Personally I would not spend it on building a greenhouse
Your ROI is going to be zero.
egor110 said:
Our mortgage is 27k svr so no early repayment charges.
I've just been left 25k in a will , would i be mental to anything other than use 2k of my savings and pay off my mortgage ?
It's probably still a noticeable monthly payment so might be worth getting rid of it. I let ours run to the end but it was an endowment mortgage and payments were buttons. It's a good feeling when it's gone.I've just been left 25k in a will , would i be mental to anything other than use 2k of my savings and pay off my mortgage ?
egor110 said:
Lastly if we get rid of the mortgage do we still need the same / any life insurance if we have no mortgage.
Do either of you depend on the other financially?Get rid of the mortgage. It's not always the most financially-savvy thing to do, but it's a pretty good one! Plus the feeling of not having a mortgage is great. I've done it once already when I was 27, and plan to do the same with my current by the time I'm about 40.
Also, you'll be surprised just how quick your money goes up when you're not paying a mortgage, so that orangery doesn't have to be too far behind it.
Also, you'll be surprised just how quick your money goes up when you're not paying a mortgage, so that orangery doesn't have to be too far behind it.
Here's an alternative:
£10,000 towards the mortgage, either to reduce the term or the monthly payment.
£10,000 into your choice of five FTSE 100 shares (or a index linked fund if you'd rather play it safe)
£5,000 on a once-in-a-lifetime holiday
If you really wan't the orangery you could save up another £10k over a few years and add that to the money you already have invested.
£10,000 towards the mortgage, either to reduce the term or the monthly payment.
£10,000 into your choice of five FTSE 100 shares (or a index linked fund if you'd rather play it safe)
£5,000 on a once-in-a-lifetime holiday
If you really wan't the orangery you could save up another £10k over a few years and add that to the money you already have invested.
Jockman said:
Honestly, IMHO, I don't think they do. They might make it a bit easier to sell maybe but add actual value I don't agree.egor110 said:
Lastly if we get rid of the mortgage do we still need the same / any life insurance if we have no mortgage.
You won't need it, but you might still want it. You'll have to think about what costs there might be if one of you is left behind, could the other one cope financially etc. etc.
Strikes me you'll begin to build up a nice savings pot anyway.
Thanks for the replies it's all food for thought.
Re the orangery idea , i don't really give a s
t about it and after talking to the mrs she's more interested in having no mortgage .
Re the 6 months savings , neither of us are in high paid or high risk jobs so i don't see our job situation changing and if it did we could live pretty easily with no mortgage , also don't forget we've been pumping £800 a month on the mortgage so this would now be going in a isa or something else every single month.
Lastly it's been a struggle not to buy a car this morning !
Re the orangery idea , i don't really give a s
t about it and after talking to the mrs she's more interested in having no mortgage .Re the 6 months savings , neither of us are in high paid or high risk jobs so i don't see our job situation changing and if it did we could live pretty easily with no mortgage , also don't forget we've been pumping £800 a month on the mortgage so this would now be going in a isa or something else every single month.
Lastly it's been a struggle not to buy a car this morning !
egor110 said:
Thanks for the replies it's all food for thought.
Re the orangery idea , i don't really give a st about it and after talking to the mrs she's more interested in having no mortgage .
Re the 6 months savings , neither of us are in high paid or high risk jobs so i don't see our job situation changing and if it did we could live pretty easily with no mortgage , also don't forget we've been pumping £800 a month on the mortgage so this would now be going in a isa or something else every single month.
Lastly it's been a struggle not to buy a car this morning !
Pay mortgage off then put £600 into a isa / savings and the extra say £200 a month live a little more prehaps. Sounds like you know what your doing and TBH i would do the sameRe the orangery idea , i don't really give a s
t about it and after talking to the mrs she's more interested in having no mortgage .Re the 6 months savings , neither of us are in high paid or high risk jobs so i don't see our job situation changing and if it did we could live pretty easily with no mortgage , also don't forget we've been pumping £800 a month on the mortgage so this would now be going in a isa or something else every single month.
Lastly it's been a struggle not to buy a car this morning !
egor110 said:
Thanks for the replies it's all food for thought.
Re the orangery idea , i don't really give a st about it and after talking to the mrs she's more interested in having no mortgage .
Re the 6 months savings , neither of us are in high paid or high risk jobs so i don't see our job situation changing and if it did we could live pretty easily with no mortgage , also don't forget we've been pumping £800 a month on the mortgage so this would now be going in a isa or something else every single month.
Lastly it's been a struggle not to buy a car this morning !
yep 100% pay off the mortgage.Re the orangery idea , i don't really give a s
t about it and after talking to the mrs she's more interested in having no mortgage .Re the 6 months savings , neither of us are in high paid or high risk jobs so i don't see our job situation changing and if it did we could live pretty easily with no mortgage , also don't forget we've been pumping £800 a month on the mortgage so this would now be going in a isa or something else every single month.
Lastly it's been a struggle not to buy a car this morning !
Then you are free to allocate the £800 to whatever you want ie cars, hols, saving or a mix. You will enjoy it even more when you get there. As others have said with the house paid - you will feel great. Its a good safety net, you have invested in your own security.
red_slr said:
Jockman said:
Honestly, IMHO, I don't think they do. They might make it a bit easier to sell maybe but add actual value I don't agree.
If you are going to get the orangery done anyway, then it might be cheaper to get it done now (inflation) than say two years time. Or is it more of a want than a need e.g. is the conservatory due for replacement anyway. Me thinks just zero'ing out the mortgage for the sake of it isn't always the best thing to do.
Gassing Station | Finance | Top of Page | What's New | My Stuff