Bitter sweet mortgage redemption

Smartbear said:
stuartC said:
I'm about 10 years off the end of my mortgage. Being otherwise debt free, I guess now would be a good time to start paying extra off the mortgage, rather than into the ISAs. (Although it's pretty close - the ISA's are getting me 1.25% and the mortgage is 1.5%).

I've no inheritance coming & a kid that wants to go to Uni in 5 yrs. :cry:
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Nobody knows how long interest rates will be low? I have an offset mortgage which works for me.
Rob
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Off set worked great for me , paid it off last year but I'll issue this word of warning. Keep a careful eye on your wife's handbag collection , I had no idea it's possible to spend so much on one bag ! :rofl:
 
We payed our mortgage off 5 years early, we cashed in a sh1t endowment early and just payed extra. It's a great feeling when you pay that last payment
 
Paying the mortgage was indeed a nice satisfying feeling as I remember - but it was tempered by the barstewards adding a penalty to the bill for early repayment!

It's only the robbers at the council who point the pistol at me each month now!
 
Paid mine off my early 40s after a particularly lucrative spell working abroad.

Painful to see a big lump of cash disappear in one go like that but the only sensible thing to at the time :)
 
Sorry for your loss Mr Bear. At least you have put the money towards making your life easier and not blown it on cocaine and hookers, even worse, you could have wasted the money.... :D

I paid my mortgage off at 32 on our second house. We actually lost money on our first house as we bought it in a bad area and then needed to get rid quickly. I remember at 25 buying the house we have lived in for the last 16 years. As we were applying for the mortgage, there was a phone number at the bottom that was actually the total amount payable over 25 years.

I got the girl to do projections on payments for 15 years, 10 years etc. Ended up paying it off in 7 years as every time I had some spare cash I went into the Nationwide and paid £500 off which was the limit per month. If you can, pay off as much as you can as having the money in the bank really doesn't give you much at the moment. I was amazed how much we saved in interest. On a £62K loan, we saved over £40K in interest by shortening the term.... :?

H.
 
^^^^^^^^^^

This...

Although mortgages are cheap now,im not sure how long the BOE can or will keep the base rate as low as it is...

Money has never been as cheap to borrow,but any interest is best paid off asap..
 
Paid mine off in 2010 after 7 years of ownership, great to have the extra cash. Then we bought a new (more expensive) house in 2013, so got straight back on the merry go round :)
Current deal ends in 2018 at which point will view the benefit of interest through investments vs interest payments on the mortgage.
 
Z4M-2006 said:
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Although mortgages are cheap now,im not sure how long the BOE can or will keep the base rate as low as it is...
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Yup, borrow as much "free" money as you can now. Rates wont be anywhere near "high" for many years. /Pats .25 above base rate mortgage. :wink:
 
mattwaltersz4m said:
Yup, borrow as much "free" money as you can now. Rates wont be anywhere near "high" for many years. /Pats .25 above base rate mortgage. :wink:
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While us prudent oldies who have saved for the rainy day are getting zilch on our cash! :(
 
ronk said:
mattwaltersz4m said:
Yup, borrow as much "free" money as you can now. Rates wont be anywhere near "high" for many years. /Pats .25 above base rate mortgage. :wink:
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While us prudent oldies who have saved for the rainy day are getting zilch on our cash! :(
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Bear in mind while interest are low, others are also getting rich on your savings. :wink: Unless you have it all hidden under the bed. :thumbsup:

Can't see them returning to double figures any time soon. Having first had a mortgage when rates where fluctuating between 12% and 17% I kind of laugh at the fear over a 0.25% interest rate rise. :lol:
 
Smartbear said:
Hi, in the next couple of days I will be phoning my mortgage guys to clear the balance & smartbear towers will belong to us.
Sadly the money to enable this has come from the sale of mrs smartbears mums house after she passed away in October :(
We've been here for ten years now and have been over-paying as much as we can sensibly afford to enable early retirement, on track to finish paying in 5 years time which is 10 years early 8)
It's a strange feeling, caught between celebration & sadness :cry:
Oh well, thanks for listening! (Off work with bear flu at the moment so too much time to think)
Rob
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Hey yeah, 16% Mortgages. Happy days. Shame I had nothing left to put in the 10% Savings accounts.

On a serious note though, we did the same as you Smartbear. Once the Mortgage was paid off, our standard of living changed dramatically. And for that I have my Mum to thank, and am eternally grateful. It has enabled us to do lots of things we would not otherwise have done.

So, yeah, Bitter Sweet. :thumbsup:
 
If it all goes to plan, we will be the ones who leave a house and a bit of cash for our children and their families.
 
stuartC said:
I'm about 10 years off the end of my mortgage. Being otherwise debt free, I guess now would be a good time to start paying extra off the mortgage, rather than into the ISAs. (Although it's pretty close - the ISA's are getting me 1.25% and the mortgage is 1.5%).

I've no inheritance coming & a kid that wants to go to Uni in 5 yrs. :cry:
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Don't forget student loans aren't paid off until a certain amount is earned by the kid - not an ideal alternative but worth the loan if it ensures the weighted income soon after
 
ronk said:
If it all goes to plan, we will be the ones who leave a house and a bit of cash for our children and their families.
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You kidding?

My wife and I have worked damn hard for our current lifestyle as we only got together 10yrs ago and had to start afresh on the housing ladder.

My wife doesn't have a pension so our current house is our retirement fund that we'll sell, downsize and enjoy, hopefully health depending, our retirement in approx. 15yrs (late 40's at the moment).

Don't get me wrong, if there is anything left after we both pass, the kids will benefit but we see too many of our friends, young and old, passing away after working all their lives, saving for their retirement only to be struck down with the Big C or similar diseases.
 
I'm not doing without for the sake of leaving them something !
What's left I will be more than happy for them to have - I hope that they'll get some enjoyment and benefit from it.
 
ronk said:
I'm not doing without for the sake of leaving them something !
What's left I will be more than happy for them to have - I hope that they'll get some enjoyment and benefit from it.
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:thumbsup:
 
ronk said:
If it all goes to plan, we will be the ones who leave a house and a bit of cash for our children and their families.
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Good plan. The whole point of living is to make life better for the next generation.
 
buzyg said:
ronk said:
If it all goes to plan, we will be the ones who leave a house and a bit of cash for our children and their families.
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Good plan. The whole point of living is to make life better for the next generation.
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and what if there is no next generation...
 
gannet said:
buzyg said:
ronk said:
If it all goes to plan, we will be the ones who leave a house and a bit of cash for our children and their families.
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Good plan. The whole point of living is to make life better for the next generation.
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and what if there is no next generation...
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Make sure you live life to the full and what you do leave, leave to a charity of your choice rather than the state!
Anything rather than the government getting their hands on it!
 
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