Any single mortgage free wannabes?

SandC

I'm another singleton MFW. I am really, really lucky that I live in the North West and bought my house back in 95. I have never borrowed further on the house so I'm down to less than £15k now (which I'm aware many people could just pay off on a credit card or summat but what they don't 'get' is that I couldn't afford the credit card payments each month but I can afford the mortgage, easily!).

Overpaying by about 30% and going to pay a chunk off next week. I originally had an endowment mortgage but cashed it in a few years back and paid that money off the amount owing and switched to repayment. Currently on SVR as people don't want to give good deals to anyone borrowing less than £25k. The guy at the bs where I am now didn't understand that it was pointless me paying £999 to save .5% on my payments, durr.

Quite the opposite to a lot of you, my married/coupled with children etc. friends seem to just add more and more debt - I guess it's not so much of a worry to owe money when there's two of you eh? Some also used their equity as a slush fund and I honestly envisage most of them to be quite happy holding mortgages until retirement and perhaps beyond because they keep wanting more and more - whether that's moving to a better place or adding on to their mortgage for 'improvements'.

I like the situation I'm in - if I was in a couple I would be very lucky to find someone of the same mindset. As it stands as I said I'm very lucky indeed (although I don't earn anywhere near £25k yet but that's a goal for the next couple of years, am not so far off now) and I could overpay a lot more but I love my holidays too and want to maintain a certain lifestyle of sorts even if the bathroom is from the 80s and the kitchen is dreadful. :T

molit

anotehr singleton MFW. Mortgage 3.5 time salery, and a couple of accidental btls. Nice knowing that i can make the decisions, and if i make a mistake, then its only me to blame, but its tough not taking econmies of scale etc. Currenly overpaying £50 a month, not much, but on a 35 year mortgage is going to have quite an impact

inigma

The perpetual bachelor here, saved up a deposit, helped my brother through uni, helped my mum with bills when my dad walked out on her, having no life for 5 years was horrid.

Now own 20% of a flat and trying to get through the next 80%! I purchased back in September a lovely 2 bed place, got a lodger who overpays my mortgage by £500 a month and have knocked 15 months off my 25 year term.

WOO ME!

katejo

I am also a single owner with no kids. I managed to get on the property ladder in 1993 and now have a 2 bedroom house. I am currently benefitting from the low interest rates but most of the time my mortgage has taken around a third of my pay which isn't high (under 30K). I do now have a lodger which i couldn't do with my first flat. It does make a difference.
I have managed to make lots of improvements on my house. I am about to have a new kitchen. I could not have done that on my salary alone. The rent has also funded roof repairs and electrical improvements.

Simon11

I'm just about to purchase my first flat with a mortgage of £65k.

From reading the posts here, surely there are some peope here who would be better off saving than paying off the mortgage?

I'm on a lifetime tracker of 2.8%, so therefore it seems worthwhile focusing on savings getting interest of 3%. Then monitor the situation in case the mortgage rate is higher than saving rates.

System

Simon11 wrote: »

I'm just about to purchase my first flat with a mortgage of £65k.

From reading the posts here, surely there are some peope here who would be better off saving than paying off the mortgage?

I'm on a lifetime tracker of 2.8%, so therefore it seems worthwhile focusing on savings getting interest of 3%. Then monitor the situation in case the mortgage rate is higher than saving rates.

Depends if your savings are tax-free of course! Even in the above example its only 0.2% difference (i.e. £2 interest for every £1000 saved/paid off mortgage). Add in 20% reduction for tax and you are worse off. However I would always save in an ISA up to allowance (can usually get 3% plus). If you have more money than that to play with I would pay it off mortgage. The rate is low now, but wont be for ever, so may hay while the sun shines!

beachie

inigma wrote: »

The perpetual bachelor here, saved up a deposit, helped my brother through uni, helped my mum with bills when my dad walked out on her, having no life for 5 years was horrid.

Now own 20% of a flat and trying to get through the next 80%! I purchased back in September a lovely 2 bed place, got a lodger who overpays my mortgage by £500 a month and have knocked 15 months off my 25 year term.

WOO ME!

That sounds like what I want to get to. I have a 2 bedroom flat but the 2nd bedroom is just a bit to small to rent out. Looking to get a bigger place which is likely to increase my mortgage by about £250 a month but take in a lodger which could bring in around £400 a month.

originalmiscellany

Beachie do it! Especially if it's someone you can enjoy being with... Think of how the credit card will be cleared, an accelerated process no less.

beachie

Just been trying to work out if I am better of staying here living alone or getting a much larger mortgage (48k more! :eek:) and renting both the rooms out.

It's more complicated than it seems because I overpay, council tax would be higher, bills would be higher, I would pay some tax if I go over my rental limit and have to factor in moving fees.

Not sure what to do. I have been here 5 years and so feel ready for a change/challenge?

beachie

originalmiscellany wrote: »

Beachie do it! Especially if it's someone you can enjoy being with... Think of how the credit card will be cleared, an accelerated process no less.

Thanks. In theory the credit card is cleared with savings but it's all on 0%. It does get a bit lonely living alone. Maybe a three bedroom place for £135k. Find somewhere that could do with a bit of work.

That way I could rent out one double for £400 and one single for £300 a month (taxed) and they would pay my mortgage.