Is it worth it?

Hi,

This question is probably more aimed at successful MFWs. At the moment, I owe about £137k on my mortgage. I am on a tracker and so have benefited from the reduction in base rate. I have not only chosen to overpay my mortgage by this amount but also increased it by a further £100.

The end result is that I'm currently overpaying by about £390. I believe that I should be able to maintain this indefinitely (unless the base rate increases to 10%!!!!!).

If I do this, it will bring my mortgage term down to just under 13 years! I would be chuffed if this was the case because it would result in me being mortgage free before I am 40.

So now for the question...... is it worth making the personal sacrificies required to achieve such a goal? Put it like this, kids might mess up my plans a bit lol What do you do at the end of it? Do you start amassing a fortune? Spend it all? I'm just not sure what the benefits are?

I'm only asking this because I don't want to spend such a significant part of my life achieving something that some of you have found to be less important that you first anticipated.
«13

Replies

  • PeelerfartPeelerfart Forumite
    2.2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    I can only answer from my own experiences as I have been overpaying for about three years. I started off owing 115,000 and in those three years have overpaid 45,000 pounds including sold endowments and regular monthly overpayments.
    I could have sent the 45K and had a damn good time and would still have a big mortgage but I didn't. I don't want to sound in any way selfish but LTV amounts dont bother me and potential job loss gets less and less of an issue with every pound that goes off the mortgage.
    I regularly check my decreasing mortgage balance and even though 70K is a lot of money, it's better than 115K.
    It's a long road but when you have to eat an elephant - do it in small chunks.

    Hope that helps

    PF
    Space available for rent
  • TOPAZ_2TOPAZ_2 Forumite
    65 Posts
    Unionjack81,
    I am still a MFW, but overpaying on the mortgage for me is more of a security thing. Whilst I am in a secure, well paid job, I dont for a minute underestimate the impact losing my job would have on me and my family. No one is indispensible.

    Particularly in the current climate - I would like to have the security of knowing, that whatever happens in the future - redundancy/illness - just plain fed up with working. Once I have paid off the Mortgage, I cant lose my home.

    Once I have done this - I then have the security I crave, and can build up my pension faster. Not glamous, and I could take a few more holidays.

    Its also important to note that you should not sacrifice life to clear your mortgage. You need to live life too. But maybe in a more balanced, less spend everything youve got way.

    You wont remember the day you made your 100th overpayment and regale stories of mortgage payments. But the day you spent building sandcastles with the kids, or mud pies will live on.

    Its about balance and bringing security closer than about sacrifice.

    Sorry for rambling
    Topaz
  • BritRaelBritRael Forumite
    1.2K Posts
    ✭✭✭
    ...So now for the question...... is it worth making the personal sacrificies required to achieve such a goal? Put it like this, kids might mess up my plans a bit lol What do you do at the end of it? Do you start amassing a fortune? Spend it all? I'm just not sure what the benefits are?

    I'm only asking this because I don't want to spend such a significant part of my life achieving something that some of you have found to be less important that you first anticipated.

    Firstly, congratulations on your discipline and resolve. Good luck.

    I would say "yes", it is worth the sacrifices. Its a great feeling when you make the last payment. :)

    As for your next questions, thats for you to decide. For me, fortunately, I've never been one for wasting money. For 'wasting money' read: buying the latest 'must have c**p' like mobiles, 'designer this, designer that' etc., so I'm probably single-handedly causing the problems in the high street. :)

    The thing is, going the way you are, you are giving yourself options. So good luck, you wont regret it. :)
    Marching On Together

    I've upped my standards...so up yours! :)
  • pebblespoppebblespop Forumite
    1.2K Posts
    i am going to become a mfw and like you wasn't sure about it.

    i will have spare money each month after i have paid off my debts and would like to use this for something constructive rather than wasting it every month or piling it up in a savings account.

    i am going to reduce my term from 25 years to 15 so that is a good saving in itself. i am also going to try and overpay as much as possible.

    i will still go on holidays and buy things i really want/need. i will just be cutting out the wasteful expenditure such as spending too much on bills and food. i won't be living like a pauper though!!

    this will enable me to be able to buy a larger house in the future. banks have tightened up the lending limits so i will need to increase the equity in my current home to enable me to move in future.

    paying off the mortgage gives you choices/options in the future.
  • Trying_to_be_goodTrying_to_be_good Forumite
    2K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭
    I have been overpaying for about six years, which has allowed me to move up the property ladder once already, and I'm preparing to do so again.

    Overpaying has given me the ability to afford bigger/better properties.

    Once I am mortgage-free, and in a home I want to stay in (that's the plan for this next move), I plan to cut down on the hours I work and spend more time and money on hobbies, including holidays.
    Mortgage Free thanks to ill-health retirement
  • Thanks for the comments and advice guys, everyone seems to have their heads screwed on.

    :money:Thanks to tips from this website and forum, I've probably saved myself a couple of thousand in a few months. I'm still living a similar lifestyle but am just more cost conscious now and have developed an annoyance at wasting money. I don't smoke, use cash back credit cards, switched bank account (extra £100 :T) and love the experience of supermarket shopping now. Thanks again for that!

    I will perserve safe in the knowledge I will have financial security in the future and oppertunity to enjoy life when I have less energy (and probably motivation) to work as hard :beer:

    UJ :A
  • RosieTigerRosieTiger Forumite
    863 Posts
    Other key thing to remember is that whether you overpay or don't - you still owe the balance in any case.
    Therefore if you can OP now, it's not wasted, your debt has been reduced.
    You seem to have got the right approach, getting the balance right on OP's but not sacrificing everything for it.
    Good luck !
    RosieTiger - Highest £242,000 Feb 2004 :mad:
    Lightbulb Dec 2008 £146,000 by March 2026:eek:
    MFi3T2 and T3 No 28 - Dec 2009 Start Balance £117,000
    Current Position-Fully off set by savings since March 2013
  • uzubairuuzubairu Forumite
    1.2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Home Insurance Hacker!
    ✭✭✭
    Lots of good advice given.

    Balance is the key.

    When I look at what we have overpayed on the mortgage over the last 2.5 years, I am amazed at the difference it has made.
    We've already knocked 11 years off the mortgage and we still enjoy treats such as holidays and the odd meal out.

    Reviewing basic household expenditure has saved us £100s (which now goes straight to the mortgage), switching bank accounts, using cashback sites (£420 so far this year), using Tesco Clubcard vouchers to pay for a holiday each year, using 2 for 1 voucher deals when eating out etc.

    It proves to us that you don't have to live on bread and water when you want to become mortgage free.

    In our previous home, we repaid £10K of a £40K loan in 9 years.
    We did eat out often and go on holiday and didn't pay too much attention to costs.
    When we took on a £113K mortgage on our current home in 2006, we realised that we would have to have some structure and discipline.
    With the help of this site we have already repaid £20K of our £113K loan in less than 3 years without a drastic reduction in our quality of life.

    The thing that spurs us on is knowing that reducing the debt as quickly as possible WILL give us options in the future (e.g. better property, reduced hours at work, more holidays etc).
  • blueberrypieblueberrypie Forumite
    2.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Name Dropper
    ✭✭✭✭
    So now for the question...... is it worth making the personal sacrificies required to achieve such a goal? Put it like this, kids might mess up my plans a bit lol

    Those are questions only you can answer. What personal sacrifices can you make? Which are you willing to make? Which are worth it?

    I don't work outside the home; I'm here with my children. For me, going out to work and missing the time we spend together would not be a sacrifice that would be worth it. But there are lots of other ways in which I save money, and those are things I'm willing - even happy - to do.

    Probably most people would feel it was worth taking lunch to work with them rather than buying it each day, using the savings to overpay. But probably most people wouldn't feel that it was worth walking or cycling to work rather than driving or taking the train or bus. It's really all down to what matters to you - whether the activity is worth the money, or whether you'd rather forego the activity and make the savings on the mortgage. You have to remember that any money you put towards your mortgage in the early days will save you two or three times that amount overall - so is that huge tv worth three times its price to you? Maybe not. Or maybe it will give you enough pleasure that it really is.
    What do you do at the end of it? Do you start amassing a fortune? Spend it all? I'm just not sure what the benefits are?

    Our mid-term goal is to help fund our kids through university by buying properties that they can live in (thus substantially reducing their expenses) and rent out rooms to other students (thus covering most or all of the mortgage payments). Long-term, those properties will be an investment for us, increasing our income.

    But that's *our* plan, and yours might be completely different. What do *you* want to do? And what are you willing to do now to facilitate it? Those are the real questions. Not "is it worth it?", but "what is it worth?"
  • unionjack81unionjack81 Forumite
    34 Posts
    But that's *our* plan, and yours might be completely different. What do *you* want to do? And what are you willing to do now to facilitate it? Those are the real questions. Not "is it worth it?", but "what is it worth?"

    Very profound :T. You should become a philosopher blueberrypie :rotfl:

    I think I was just feeling rather disillusioned the day I wrote that original message. I am definitely well and truely back on track thanks to the motivational comments in the replies.

    My wife and I are waiting until we are 30 before deciding on whether to have kids or not. Really, that was the big sacrifice I was considering because I don't think I could overpay at the same rate if I had kids since my wife would probably end up staying off work and my expenses would incrase. However, someone once said to me that kids are the only worthwhile investment you make in life. Not wanting to go to deep and meaningful on a moneysaving forum (lol) I will not develop this point further.

    Thanks again :beer:
This discussion has been closed.
Latest MSE News and Guides