DO you pay all the Mortgage off.

co123456

Jonbvn wrote: »

What happens if you lose your job or you are ill long-term?

If either of those things happened, I wouldn't look to borrow money. Agreed, there is a risk, but there's a risk in everything. Worth assessing your own situation and weighing things up.

Jonbvn

cheeryoleary wrote: »

If either of those things happened, I wouldn't look to borrow money. Agreed, there is a risk, but there's a risk in everything. Worth assessing your own situation and weighing things up.

:huh:
Don't understand your response. IMHO, it is complete madness for anyone to overpay their mortgage without any emergency savings whatsoever.

Harry_Powell

Jonbvn wrote: »

:huh:
Don't understand your response. IMHO, it is complete madness for anyone to overpay their mortgage without any emergency savings whatsoever.

That's what I keep banging on about, but some people seem to just put their head in the sand. The statement "there is a risk in everything" sums it up for me. Yes there must be a risk in everything if we deliberately put ourselves at risk. However, there are ways to reduce and even eliminate risk, and having a decent amount of savings is one way to mitigate the risk of losing your job or becoming ill.

Far from being a 'safe' investment strategy, MFW should have a wealth warning.

black_taxi_2

mortgage is biggest monthly payment---having that off your books looks better to me than any savings account.

with interest rates so low now is a great time to o/p

once mortgage is paid tranfer those payments into a savings account.

saying MFW should carry a health warning is delusional

black_taxi_2

wealth warning

health is better being mortgage free

Harry_Powell

black_taxi wrote: »

mortgage is biggest monthly payment---having that off your books looks better to me than any savings account.

with interest rates so low now is a great time to o/p

once mortgage is paid tranfer those payments into a savings account.

saying MFW should carry a health warning is delusional

How long will it take you to pay off a mortgage?

black_taxi_2

trying to do it in 3.debts included.

also £100 a month EF savings account

black_taxi_2

mortgage=debt

1.pay off mortgage--piece of mind
2.leaves more choice--working hours
3.leaves you with more control of your money--reject bank loans/save/
4.banks love interest only mortgages/rarely talk about repayment/o/p mortgages(wonder why?)

Harry_Powell

black_taxi wrote: »

trying to do it in 3.debts included.

also £100 a month EF savings account

How long have you been at your MFW challenge so far?

co123456

Jonbvn wrote: »

:huh:
Don't understand your response. IMHO, it is complete madness for anyone to overpay their mortgage without any emergency savings whatsoever.

Let's take a step back. It's a pretty mad idea in the first place borrowing three and a half times your annual wage (or more) and buying a property. The threat of losing my job or becoming ill was a driver behind paying off all my debts and moving away from the reliance of credit. It's a different way of thinking than "you can borrow your way out of a problem" hence disposing with the mortgage credit line. That said, I'm currntly Stoozing about £20K worth of cash at the moment and continue to enjoy 0% deals from credit card companies. This has helped me to be in the position where for the last year of my mortgage, I paid hardly interest. I'm used to borrowing money for 0% so borrowing back from a mortgage credit line and paying perhaps 4%. to me... is madness.

There is no right or wrong way. You assess your own situation and make your own choices. What's right for me, might not be right for you.