Paying off a Mortgage

[munmun]

Its clearly a personal choice. We dont need or want credit, maybe if it was interest free but otherwise not.

We are happy to know what we have is ours, no debts, monthly bills paid by direct debit, insurances paid annually by credit card. All credit cards paid off monthly.

We are lucky as Mr Macawber said ' 'Annual income 20 pounds, annual expenditure 19 [pounds] 19 [shillings] and six [pence], result happiness. Annual income 20 pounds, annual expenditure 20 pounds ought and six, result misery'

Don't worry about your credit rating, it will work out!

[shack69]

if you have no other debts and a rainy day fund then yes consider paying it off. But do check there is no fee for doing so. Also if you have any thought that you may need a loan in the next couple of years you may want to check the terms of the mortgage as some allow you to borrow back money later (eg offset). In which case ask what the minimum is you need to keep the mortgage alive and then pay off all but that amount.

check out this article moneysupermarket/mor...-overpayments/

[Danex]

Definitely pay your mortgage off.

Like other posters have said it’s so liberating not having to think about it each month.

We paid ours off in August 2020 with money we had saved not having holidays due to coronavirus.

I love the security of it being paid and knowing no matter what happens with my job (I’m self employed) that we have a roof over our heads.

Just to add we also have saved a safety fund to cover at least one years expenses.

[ChrisS]

Paid off our mortgage bout 10 years ago after comparisons of saving the money vs mortgage redeem. Have a few cc's but only use one, which is paid in full each month. Don't know if we'd have credit score issues as we don't credit buy.

[gl20]

I’ll put in a counter argument. We could have paid ours off 2 years ago but have left money in the off-set account and funds whilst retaining the monthly payment. The offset can be used to finance a new car, extension etc at 1.5%. The fund averages 7% return so expect we’ll be about £100k better off by time we get to the end of the mortgage term.

[munmun]

Originally Posted by Perthite

Is anyone else wondering enviously how so many posters have been able to pay off their mortgages?!

See more...

This is a special set of people, no one can say they are average. This set are good at saving or earn well. They can afford Florida holidays which mean they have disposable income.

Before someone jumps on my head I know that many people here save hard and work hard for their holidays but there are many people who work hard who can begin to afford a Florida holiday.

[neatfrk]

Sometimes it isn't about the numbers and rates and such... it is a quality of life decision.

If you are in the position to pay off your mortgage (have a rainy day fund, no other major debt, not living check to check)... and you'll enjoy life more knowing you are free and clear - go for it. Sleep well at night. Enjoy the fruits of your savings and labor (sorry...labour).

Recently paid mine off, so far no net effect on credit rating. Feels great and life has just a little less stress now...so worth it.

As others have said...if you are in a position to pay off your mortgage - don't waste too much time worrying about credit rating.

[Dinglebert]

Originally Posted by neatfrk

Sometimes it isn't about the numbers and rates and such... it is a quality of life decision.

If you are in the position to pay off your mortgage (have a rainy day fund, no other major debt, not living check to check)... and you'll enjoy life more knowing you are free and clear - go for it. Sleep well at night. Enjoy the fruits of your savings and labor (sorry...labour).

Recently paid mine off, so far no net effect on credit rating. Feels great and life has just a little less stress now...so worth it.

As others have said...if you are in a position to pay off your mortgage - don't waste too much time worrying about credit rating.

See more...

Would agree. We paid ours off 7 years ago. Had no impact on credit rating but then I frankly don't care. I don't own anything to anyone any more which after many years of debt is just plain good.

[novocastrian]

we paid ours off @6 years ago

never even looked at credit rating we have x2 CC between us paid off in full every month

no loans, overdafts or finance on anything so not really bothered either way ..

[mason1]

We paid ours off last February, we’d been overpaying regularly and shaved 7 years off it. It’s the best feeling ever - we purposely went into branch to pay the final balance. With everything that’s happened in the last year we’ve said it’s the best thing we’ve done. Whatever happens the house is ours.