DON'T Pay Your Mortgage Off Early!!!

Sloppy_Saver

WISHIWASRICH wrote:

I wasn't gonna post of this thread anymore either but "Gibberish" :mad: The arrogance of the man......:rolleyes:

Still when I've paid of my mortgage I wont care about the insults.....that will be the last laugh wont it?

I've heard some rubbish (from you) in my time but this takes the biscuit. I'll have the last laugh when your house value starts freefalling and your overpayments get wiped out.

You'll be doing an overpayment of £400 per month, while the house value drops £500 per month. Good thinking, Einstein. Or to paraphrase the gibberish from your last post (so good you said it twice?):

Why is this WOMAN being allowed to continue? I'm sure the HOUSE-MARKET CRASH and the ZERO-GAINS will soon shut her up. Can u imagine the Housing Market Crash and Zero-Gains shutting her up?


Damn I got dragged in again! :rotfl:

lynne1307

Hi, I am really struggling with this. I have been thinking about moving for a while, then got twitchy and decided to pay off mortgage instead, after wondering how it would feel to go from 14 yrs paying 600 quid mortgage to 6 years by overpaying. Now I wonder if I would be doing the right thing. i have finished paying for my car and now have an extra 250 quid to spend, and also some recent salary increases give an extra 250, so i can comfortably afford to overpay by 500, or move to a bigger and better house, which i have been thinking of for some time.

Now i after reading this thread (and the others about paying off the mortg) I was initially excited about the thought of paying it off, but now, i am thinking, if i pay off the mortgage and become mortg. free, then am i happy to never move house, apart from down to a two bed two up two down?

I am in a quandry, move, or pay off mortgage. want newer house but twitchy about going from 600 quid mortgage to potentially 1100 mortgage?

any opinions (and i think there are plenty of people here i hope who will give them) to tip me one way or the other. i need to make up my mind soon just need a push.

ta
L

comping_cat

lynne1307 wrote:

Hi, I am really struggling with this. I have been thinking about moving for a while, then got twitchy and decided to pay off mortgage instead, after wondering how it would feel to go from 14 yrs paying 600 quid mortgage to 6 years by overpaying. Now I wonder if I would be doing the right thing. i have finished paying for my car and now have an extra 250 quid to spend, and also some recent salary increases give an extra 250, so i can comfortably afford to overpay by 500, or move to a bigger and better house, which i have been thinking of for some time.

Now i after reading this thread (and the others about paying off the mortg) I was initially excited about the thought of paying it off, but now, i am thinking, if i pay off the mortgage and become mortg. free, then am i happy to never move house, apart from down to a two bed two up two down?

I am in a quandry, move, or pay off mortgage. want newer house but twitchy about going from 600 quid mortgage to potentially 1100 mortgage?

any opinions (and i think there are plenty of people here i hope who will give them) to tip me one way or the other. i need to make up my mind soon just need a push.

ta
L

Why not do both - overpay half, save half - that way you will still be paying off your mortgage quicker, but you will also be building up a 'nest egg', either as savings or pension, whichever you feel you need. If it is savings, when you have paid your mortgage off, and you do want to move, you might not need to have a mortgage at all to move up on the housing market, or only a small one.
Being dragged in to Sloppys argument again - you are assuming that their will be a house price crash - and even though there was one back in the 90s, it only matters if you cant afford your mortgage payments, or if you want to move. Personally, im happy in the house im in (at the moment) i want the security of owning my own house, and not having to pay rent to line someone elses pockets, who could tell me to leave at any time. Also, i would rather not pay the banks thousands in interest charges, and not have them chuck me out of my house as well (my overpayments are giving me a safety net if anything happened and i had to miss any payments).
Ive said before, i have a pension and a small amount of savings (i wish it was more, but never mind) any overpayments are also a way of saving, so i think, for me, i have the balance right.
No matter what anyone has said on this thread - i still believe in paying my mortgage off ASAP, its a debt i would like to get rid of, so im still a mortgage free wanabee!!!!

Tim_L

Pretty much agree with Catowen really that you can do both if you want to reduce monthly outgoings: the main thing is to have a balanced approach to this.

Targetting whatever you do against reducing your outlay on the mortgage to (or past) zero is a tremendously effective way of focussing your efforts. But as I've said, being mortgage neutral (i.e. having enough cash to pay it off when you like) gives you more options ultimately.

Sloppy is being over-confrontational, but the problem with overpayment is always this: if you hit trouble some way in - you become unemployed or ill - but before completing the process, your spare cash is impossible to get at because it's locked away in the house. And the banks will ultimately repossess regardless of whether they've been overpaid in preceding years. If this combines with a housing crash - and there certainly is a risk of this happening - then you have a potential double whammy as your house is sold off for much less than you have invested in it.

On the other hand if you have the 'overpayments' available as cash somewhere, you can live off them for a while and still pay the mortgage.

Once you get to the point where you have savings equal to your mortgage, you can of course pay it off when you like. Having got into that position myself I find no compelling reason to do so.

Lotta_Littlies

Dithering_Dad wrote:

Just need to find a bit of info on how to magic away my credit card debts and I'm sorted

Not magic but you'll get lots of support on the Debt Free Wannabe board

Lotta

Lotta_Littlies

While I agree to Sloppy Saver's "don't put all your eggs in one basket" opinion I have to say that I don't like the manner in which it's been said. You really don't have to be so rude to put your point across.

The main issue about me wanting to overpay the mortgage is the high amount of interest which the bank makes out of us every month. However, I am not making overpayments to the mortgage while sacrificing anything else but rather, am using the pain free savings method for this. Anything into my ISA/Savings is budgeted for as is my pension but my mortgage overpayment plan at the moment consists of using the odds and sods of money that wouldn't be missed, ie, savings I make from coupons/vouchers, cashback, and of course the proceeds from my frog and pig money banks.

However, I don't think I'm any better than anyone else for doing it this way nor any worse and I certainly wouldn't patronise or be insulting to someone else who, heaven forbid, chose to do things differently to me. What works for and is preferred to by some might not be the ideal route for someone else and I can accept that and am quite happy to go along with my life without feeling the need to shove my opinions down their throats.

Lotta

IFA

Timing is everything,

My house price has tripled from 7 yrs ago, even if there were a crash in house prices I'd almost definitely still be up so it doesn't matter in my case.. As long as I get rid of the debt and stop paying the bank interest asap

I'm holding on to some rubbish tech shares that seem to be moving at an inflationary rate now. I think I may sell these and find a well managed fund that beats inflation. Emerging markets like Pacific Asia ,eastern europe any tips Tim?

I don't have a crystal ball unfortuantely, but i do have:

a) investments in shares
b) pension (matched 4 % employer)
c) overpayments to mortgage

So I think I'm covered

Pension is winning at the moment (20% a yr ,

Sloppy_Saver

Nice one IFA, good to see you leading by example. Diversification, that's the ticket. Good to hear that your pension is doing so well, that's one in the eye for the doubting thomas's who think all pension plans are going to go the way of MGN's.

I've decided to carry on posting on this thread - everytime I go away, the lunatics take over the asylum, with only the sensible voices of Missy, Missy's Dad (Tim), IFA and that other fella who told me off for being too cautious with my money able to be heard over the constant mad ravings of the POYM loons.

I seem to be getting a bit of a beat-down for my caustic ways, and for not reading people's posts correctly (talk about the pot calling the kettle...). Hopefully this'll redeem both failings. Here's a helpful little post for Dithering Dad - Your Signature has your credit card debt and your endowment shortfall with exactly the same value in it - either a cut and paste issue or an amazing coincidence.

Sound plan, by the way to blitz the credit cards - if anything goes wrong you can always borrow the money back off them, which isn't generally the case if you blitz the mortgage, but don't get me started there. Your other idea about paying down the mortgage once you get "back on track" is rubbish, so I'd rethink that one.

There, see I can be nice :undecided

Sloppy_Saver

cupid_stunt wrote:

My husband and I are both PhD students. Our funding runs out in october but I know that I wont finish exactly on time. There's a big pot of money available for people who overrun, provided they have no savings. As all our savings are going to be paid off our mortgage we wont have savings but if we did we wouldn't be able to get a penny from the Uni and would end up spending a lot of our savings on the standard mortgage payments/bills etc and be worse off.

Tut tut, surely the "over run" money is for students who are struggling and in desperate need, not wadded students who are hiding their huge stash of cash to get money they shouldn't be entitled to.

See, this is what the POYM strategy turns people into: grasping misers who's only care is salting away every penny they can onto their mortgages..

keeperbear

Sloppy_Saver wrote:

As a final post on this message - yes this is it. I will not be pulled back in again! Did anyone notice that the ones who were fighting hardest against me (and trying to get my message stream deleted and me kicked off the system) were the ones who DID have pensions and savings and so believed in everything I said?

I don't read, let alone believe anything you rant about. Please, please take your arrogant and rude manner to a board that wants to hear it. Do you enjoy trolling and being rude to posters?

As I predicted, you have now started a "don't get into debt" thread. :rolleyes: