Mortgage Free?

Holche

I hope I'm posting on the right board but I'm after some advice/opinions on what we should do.

I've been lurking for a couple of years and with all the good advice on here and a lot of hard work we are now fully offset. Our fixed rate on our mortgage has recently ended and there is no early repayment fee.

So shall we pay the mortgage off? My husband is keen to pay off some of the mortgage and spend some of the offset on a new kitchen. Which we do need (but not desperately).

I'm not so sure. If we paid the mortgage off it would take us a couple of years to save for a new kitchen.

What would you do?

NPowerUser

Personally, I try and do without but that is down to personal preference.

I have made a number of sacrifices like better fixtures and fittings, holidays, new cars etc.

My aim has always been to repay my mortgage as soon as possible. Not only does it save us a fortune in interest payments to the bank, it gives us the added peace of mind that should either of us lose our jobs, then having no mortgage takes a lot of worry and stress away.

I have probably sacrificed too much at times, especially not having a holiday in over 6 years, but hopefully by the end of this year I can say to myself that the house is ours and then start enjoying ourselves.

Good luck in finding that balance.

Tahlullah

This is a personal decision like NPowerUser says. I suppose it's down to your attitude to risk. I would rather pay down the mortgage for the same reasons given by NPU, but I would not sacrifice my holidays, prefering to take a bit longer in the process so I can still enjoy life.

originalmiscellany

It also depends on your interest rate currently on your mortgage.
If you can view that as a "pot" to dip into as and when you need it, then it will probably (Certainly?) be cheaper than any loan you can get.

Therefore I would suggest you consider that, and also if you're thinking of moving in 5-10 years, a new kitchen etc would addvalue long term but also help you enjoy your house!

edinburgher

Therefore I would suggest you consider that, and also if you're thinking of moving in 5-10 years, a new kitchen etc would addvalue long term but also help you enjoy your house!

We're just as the start of our mortgage journey, but are probably aiming for a new kitchen next year. Like yourself, it is needed and like OM says, we can get a few years enjoyment out of it and add value/break even when we sell.

If you're fully offset, is it not basically a loan to yourself at minimal interest?

Do what feels right for you, but it sounds like a fairly positive conundrum all round.

MallyGirl

originalmiscellany wrote: »

Therefore I would suggest you consider that, and also if you're thinking of moving in 5-10 years, a new kitchen etc would addvalue long term but also help you enjoy your house!

I had lots of discussions with DH about delaying the start of our garden room/extension project until we had paid off a bit more of the mortgage but I won in the end, arguing that I would like to be using the extra space rather than going through all the pain of the build shortly before downsizing to liberate cash for early retirement. The extension will add value but nowhere near as much as it is costing, however it will improve the desirability of the house should we need/want to sell.

DigForVictory

Were it my decision, I'd get mortgage free as soon as possible. Then it Just Doesn't Matter As Much about health, steady income, sticking in a job you have come to loathe etc.
I know, a nice kitchen can help sell a house, but were you planning to sell in the next two years? Celebrate mortgage freedom with a carefully planned (& ruthlessly budgeted for) new kitchen!

egoode

I think if you are planning to stay there for a few more years then spend the money to get the kitchen done and you will get to enjoy it for longer. Also with rates so low at the moment it really won't cost that much in interest payments whereas if you need a loan in a few years time it's likely intrest rates will have gone up.