Paying off a Mortgage

[wanye]

Originally Posted by 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.

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for me, (along with covid) it has given me the freedom and inspiration to look at quitting the day job and starting up some sort of catering business

between the two of us, we have around £500 a month of bills, and £500ish of food/living/entertainment costs, so as long as between us we bring in a grand a month, we've got enough to live on. everything else on top is a bonus to be used for holidays/building work/savings/shiny things

prior to paying off the mortgage, we couldnt even really consider quitting the corporate treadmill as we had to keep mortgage payments up. its really liberating!

[stecee]

We paid ours off several years ago, I’ve not noticed any change re credit rating. We’ve never had a problem getting anything like phone contracts or car finance.

[Michyloulou]

Wow, you lucky people living mortgage free. Ours will be paid off in 11 years - however we plan to extend into our loft and will have to increase our mortgage to do so, but hoping to keep the same mortgage end date. I can not wait to be mortgage free and join you lucky lot!

[Smilesonfaces]

Originally Posted by Michyloulou

Wow, you lucky people living mortgage free. Ours will be paid off in 11 years - however we plan to extend into our loft and will have to increase our mortgage to do so, but hoping to keep the same mortgage end date. I can not wait to be mortgage free and join you lucky lot!

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Whilst it is great being mortgage free I would definitely prefer to be 35 with one than 55 without

[salmim]

Originally Posted by Smilesonfaces

Whilst it is great being mortgage free I would definitely prefer to be 35 with one than 55 without

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Best post yet!

[Bolto6]

Originally Posted by Stitch & Smudge

I’m going to go against the flow here. Mortgage rates are at a historic low. If you still have a decent sized mortgage then now is the time to remortgage on a decent fixed term. You’ll find that the interest payable is negligible. Credit card debt however carries a far higher repayment percentage. Paying off short term debt far outweighs a mortgage. Also for anyone starting out, borrow over as long a term as possible. Yes, you have a mortgage for longer but over time inflation erodes the amount you require to repay. (i.e. a loaf now costs £1 but in 25 years time it’ll be £4 so in relative terms in 25 years your mortgage will only be costing you a quarter of what it does now. Figures for illustration only.)
Edit to add, we didn’t pay ours off as we would have had an early repayment fee. Yes, I am that tight.

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Strangely enough we got our mortgage 9 1/2 years ago, over 20 years, and I cannot get us onto a better deal. I look periodically, but I just can't do it, with arrangement fees and fixed rates, the best I can do it take maybe £5 or £10 a month off, it's just not worth it for me.

We've got a lifetime tracker, with no penalties and we had no arrangement fees. I am currently overpaying slightly - basically when the interest rates went down, I carried on topping up to the same value we'd been paying.

We were also very lucky that we bought in 2011 at the bottom of the crash, the house we live in lost £70k in the 4 years between it being built and us buying it, it's now worth what it was brand new in 2007, again. So happy days for us

Back to the original question if I could pay it off I would in a heartbeat, it's one of my top 5 things getting me down. I just want to pay it off and be able to use the money we pay on enjoying life.

[Tinygog]

Thank you all for taking the time to reply and express your views and opinions.

It looks like paying it off has many benefits. I do agree with what Tom said about the money you used to pay on a mortgage can just disappear on other things, so I'll look at paying something into another account for savings, if I do pay the mortgage off.

Thanks again.

[Dinglebert]

Originally Posted by Smilesonfaces

Whilst it is great being mortgage free I would definitely prefer to be 35 with one than 55 without

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Bet your not saying that in 20 years

[salmim]

Originally Posted by Mr Tom Morrow

We paid our off circa 2.5 years early by overpaying each Month for years.

However within 2 Months I wondered where that money was going as it just got absorbed into other things. Hence I set up another account and each Month until I retired I transferred that money into the new account. Nice to have a lumps sum.

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That is (was) just like any pay rises or promotion salary increases I got. All just seem to get absorbed!
Tried telling the lads to either put half of all rises in Pensions or extra mortgage payments.
Think they're just waiting for inheritance though! 🤣

[Apricota]

And we have three more payments on ours... cannot wait not to have a mortgage