Why mortgage free?

BFM

i would say that while there is nothing wrong with chipping away at the mortgage directly a totally valid alternative is to be sticking away that money each month into investments at least to some extent

especially the £5k/10k per annum you could be putting in tax free ISAs and selecting fairly low risk options.

if the end game is how quickly can i have no debts the key thing is just to reduce your spending on the here and now using the mse mantras and stick the difference into your future - the actual instrument is less important i think.

and with everything a sensible balance is probably the best way to go imo.

adwat

For me it is to achieve financial independance with respect to my job. No mortgage also opens up the freedom to downshift if I wish and/or simply take work less seriously. I feel it will empower me to not worry about work - pressure from management to achieve more and more etc. - maybe these are good reasons to get out of my existing job on their own, but knowing that you are not so financially dependant on a job and that more or less any paid employment would suffice instead will be a good feeling to have. Of course, maybe it will make no difference at all, but there's only one way for me to find out.

Having just re-read the above, I suppose it simply boils down to percieved job insecurity on my part.

greent

Freedom of choice. Security. I want to pay ours off by 07/2016 - which will be 25 years from when we took out our first mortgage (£40k, sold house 5 years later with negative equity. Bought larger house with £68750 100% mtge (paid neg eq off from savings). Bought a larger house agin 9 years later with £130k mtge and then took £30k f/ advance for loft conversion) House worth £300-325k (depressed price) and mtge approx 88.5k.

We ahve 4 children aged 13 - 20months. Our eldest could be going to uni a few months after our target date. Money will be freed up to help with costs for them...

property.advert

mbbetter wrote: »

Just expressing my opinion but my kids can pay for themselves through university.

Seeing that I funded my my own way through university, I don't see why I should also fund theirs. If they want to go to uni (and I think they should) they should see it as an investment, much like I was forced to (rather than some boozy rite of passage to move out of home). Hopefully this would also make them think before choosing some mickey mouse course.

So you've £50,000 of university debt then have you or have you cleared that already ? Presuming you paid £9000 or more a year for your courses, rent for your digs and paid for your own food and entertainment expenses, without help from the bank of mummy and daddy, who then didn't help you with a deposit on your first property or give you a car etc.

Things are changing. Even a basic 3 year course with rent at 5k, course at 9k, expenses at 5k is night on 20k a year and to be realistic, 25k. That is 75k over 3 years minus some ad hoc income.

Start to pay that back and you are saddled with debt which affects your ability to save for a property etc. after graduation.

Most kids know jack !!!! when they go to uni and far more than passing some exams and attending a few lectures, they need to grow up, get a backbone and chuck a few beers down their necks at the uni bar.

It is a right of passage which parents should pay for but most parents would selfishly spend the money on themselves. Clearing a mortgage could allow them to meet those obligations as experience shows that parents are bloody useless when it comes to saving up for education.

RosieTiger

Because we want to, so if you don't want to, then don't do it!

RosieTiger

Jonbvn wrote: »

OP,

Good question.

IMHO, because many posters on here are very single minded about being MFW and have missed the big picture wrt their finances.

Without trying to be funny, I understand your view point, but don't understand why you offer the same advice to everyone who posts about their intention to pay their mortgage off.
This is a mortgage free wannabee board. I understand that there are a number of ways to go about this, but it isn't a "Using Investments To Gather a sum equal To My Mortgage Board"

ViolaLass

property.advert wrote: »

It is a right of passage which parents should pay for

Not true. Why would a parent have an obligation to pay for an adult to spend three years drinking (your description of what they should do while getting a degree)?

property.advert wrote: »

but most parents would selfishly spend the money on themselves.

Prove it.

property.advert wrote: »

experience shows that parents are bloody useless when it comes to saving up for education.

Prove it.

ic

In my own situation, I'm lucky enough to be able to make significant overpayments, that should see my mortgage gone in about 11 years - I'm five years into that. My own view is that I hate having debt, and would rather be in the situation that by the time I'm 36 and mortgage free. Regardless of what is going on, I'll have cash to spend as I choose - lavish holidays, nice car, investments, whatever. I'll be free, safe in the knowledge that nobody can take my house off me. I don't spend all my income on the mortgage, I still enjoy life now - if I were to strip it right down, I could see the mortgage off much quicker, but I'd not enjoy life. I think I've found a balance.

mbbetter

property.advert wrote: »

So you've £50,000 of university debt then have you or have you cleared that already ? Presuming you paid £9000 or more a year for your courses, rent for your digs and paid for your own food and entertainment expenses, without help from the bank of mummy and daddy, who then didn't help you with a deposit on your first property or give you a car etc.

Things are changing. Even a basic 3 year course with rent at 5k, course at 9k, expenses at 5k is night on 20k a year and to be realistic, 25k. That is 75k over 3 years minus some ad hoc income.

Start to pay that back and you are saddled with debt which affects your ability to save for a property etc. after graduation.

Most kids know jack !!!! when they go to uni and far more than passing some exams and attending a few lectures, they need to grow up, get a backbone and chuck a few beers down their necks at the uni bar.

It is a right of passage which parents should pay for but most parents would selfishly spend the money on themselves. Clearing a mortgage could allow them to meet those obligations as experience shows that parents are bloody useless when it comes to saving up for education.

Like I said, just expressing my opinion. I don't have kids yet and maybe my opinion will change. I don't judge people that want to pay pay for their kids through university, I can see why they want to and I say fair enough. I'm was simply stating my position on things, I didn't make it personal against you.

I'm not going to justify my position with a full biography on a web forum. All I will say is I made quite a few sacrifices during my "rite of passage" (actually that was a self-funded gap year rather than Uni) as did both my siblings that also have excellent degrees. My parents could have funded us, they didn't (they did support us) and I'm happy to see them enjoy their very early retirement.

adwat

I thought this thread was about our reasons for wanting to payoff our mortgage?

But..... while we're on the subject of paying for our kids further education, I'd like to add my opinion that the politicians who started making kids responsible for their own tuition fees and maintenance were of a generation that enjoyed free tuition and means tested maintenance grants.

For them to deny the next generation a free education was both hypocritical and small minded - the total cost of further education is marginal when compared to, say, building a nice shiny new aircraft carrier. Indeed, New Labour spent many billions of pounds increasing benefits to all and sundry whilst expecting the nations children to pay for their own education.

Shame on all the politicians that voted for this.

Having said that, as much as I disagree with the charges, I would be happy to help my children go to university should they so wish. However, many parents will not be able to help their children in this way and that, i feel, is unfair. Whatever happened to every child in this country having a fair chance of a good education?