Is it so wrong to pay off my mortgage early?

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  • atush
    atush Posts: 18,726 Forumite
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    why is this thread still going?

    The answer is, if you can get more interest in your savings than mtg, or dont have sufficient pension contributions the answer is clear?


    Or is this the lobotomy club?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    atush wrote: »
    why is this thread still going?

    The answer is, if you can get more interest in your savings than mtg, or dont have sufficient pension contributions the answer is clear?


    Or is this the lobotomy club?

    Ultimately down to personal choice and financial circumstances.
  • jimjames
    jimjames Posts: 17,592 Forumite
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    atush wrote: »
    why is this thread still going?

    The answer is, if you can get more interest in your savings than mtg, or dont have sufficient pension contributions the answer is clear?

    There's actually another point I'd not considered but a friend who has paid off their mortgage has experienced.

    Now they have no mortgage showing on their credit file there is nothing that identifies that they have any assets so the large car loan now looks potentially risky. They've found difficulty in applying for new credit card which has been refused despite perfect credit and no issues in the past.

    Something to be aware of that I'd not thought about as part of the equation between paying off and not.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • darkidoe
    darkidoe Posts: 1,125 Forumite
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    atush wrote: »
    why is this thread still going?

    The answer is, if you can get more interest in your savings than mtg, or dont have sufficient pension contributions the answer is clear?


    Or is this the lobotomy club?

    Also depends on your mental state. Most people might get really stressed with debts. At least I do.

    Save 12K in 2020 # 38 £0/£20,000
  • talexuser
    talexuser Posts: 3,498 Forumite
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    jimjames wrote: »
    Something to be aware of that I'd not thought about as part of the equation between paying off and not.



    A valid point. I haven't had a loan since paying off the mortgage more than 20 odd years ago, but have always been offered one when changing car, and got a 0% deal on half the price on the last one with 3 years servicing thrown in so it did not hinder there. No problem opening multiple bank and savings accounts, but that may be different and depend on personal circumstances anyway.
  • Red29
    Red29 Posts: 98 Forumite
    atush wrote: »
    why is this thread still going?

    The answer is, if you can get more interest in your savings than mtg, or dont have sufficient pension contributions the answer is clear?


    Or is this the lobotomy club?

    What is it with people being rude on this site? Do regular posters feel they have the right to talk people in this manner?

    Atush I appreciate all of your previous posts and advice but was there any need for this comment?

    If you read my post on page 2 you will see that I came back to update on my thought process out of courtesy, as I always think it rude when an OP gets lots of time and advice from other users, and then you never hear back from the OP. I didn't ask for any further advice.

    This post is still going because other users chose to comment after my update post above - which they are quite entitled to do and I don't think there is anything wrong with having a continued discussion on this, and not just for my benefit, as the topic clearly resonates with people.

    I am sorry that I am not taking the hallowed advice of MSE posters as gospel.

    I did not post on here to do as I was told - but to hear impartial views and then make my decision based upon my life, and yes that includes my attitude to debt and my emotions. :)
  • Red29
    Red29 Posts: 98 Forumite
    Thrugelmir wrote: »
    Ultimately down to personal choice and financial circumstances.

    Totally agree :)
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    Eco_Miser wrote: »
    Logically, as you said, you should keep the mortgage and profit from the higher interest you are receiving.

    Emotionally, I have never regretted paying my mortgage off early.

    Agree with this absolutely. The sense of freedom it gives you is amazing!
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • atush
    atush Posts: 18,726 Forumite
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    Red29 wrote: »
    What is it with people being rude on this site? Do regular posters feel they have the right to talk people in this manner?

    Atush I appreciate all of your previous posts and advice but was there any need for this comment?

    If you read my post on page 2 you will see that I came back to update on my thought process out of courtesy, as I always think it rude when an OP gets lots of time and advice from other users, and then you never hear back from the OP. I didn't ask for any further advice.

    This post is still going because other users chose to comment after my update post above - which they are quite entitled to do and I don't think there is anything wrong with having a continued discussion on this, and not just for my benefit, as the topic clearly resonates with people.

    I am sorry that I am not taking the hallowed advice of MSE posters as gospel.

    I did not post on here to do as I was told - but to hear impartial views and then make my decision based upon my life, and yes that includes my attitude to debt and my emotions. :)


    I wasnt referring to you at all, just other reiterating things already said.

    That wasnt me being rude, it was me being frustrated
  • atush
    atush Posts: 18,726 Forumite
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    This is one important
    My only concern with a pension is they have had such a bad rep, what if the scheme goes bust or grows poorly?

    Pensions dont go BUST. Not these days anyway. Single companies (incl yours) can go bust, so dont invest in single companies in your pensions. Invest in funds that include equities and other assets.

    As a limited company, you are missing a huge trick. Open a pension, and the company pays into it (not you). This is a company expense, so lowers your profit and corporation tax. Can also lower company Nics.
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