Am I trapped by my mortgage?
ixwood
Forumite 2.6K Posts
Are you serious or just rubbing it in? lol.
You have more cash after you pay the mortgage, than most would have earnt before tax.
If you really strugggle, then it's madness. What do you do with the money?
If I earnt 70k, I'd be semi-retired and mortgage free in 10 years.
You have more cash after you pay the mortgage, than most would have earnt before tax.
If you really strugggle, then it's madness. What do you do with the money?
If I earnt 70k, I'd be semi-retired and mortgage free in 10 years.
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You can cut back on other outgoings- reduce Sky packages, eating out less etc to ease the pain a little- I'd love to have £2670 left after paying my mortgage:rolleyes:
Balance 19th April '07 = minus £27,640
Balance 1st November '09 = mortgage paid off with £1903 left over. Title deeds are now ours.
please post an SOA and we'll do what we can to help you get your finances sorted out, obviously you have outgoings we know nothing about but we are all here to help each other.
Best wishes
GQ
The screws are tightening for all homeowners slowly but surely.
Mortgage July 2007 - £0
Original Mortgage Termination Date - Nov 2018
Mortgage Interest saved - £63790.60
ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)
But OP is fixed until Jan. Then again, when he might be able to get in Jan is likely to be MUCH higher than what he got 18 months ago.
I think you have to think about what's going to make you and your family happiest. £2500 certainly does sound like more than most people have to live off (even before they've paid their mortgage) but then a half million pound house is more than most people have too.
You have to prioritise. 37.5% of your take home certainly sounds like it should be doable, but if you've followed all the advice given on this site about how you could reduce your outgoings, and that's going to make you all miserable, then you have to ask yourself is your house worth it? Yes, your house is an investment, but it's not like other investments because it's also your home. You can't think about it as clinically as other investments. If you really do love your house that much, then it sounds like something else has to give. As to what, that's difficult to say when we don't know what you spend £2.5K / month on. Cars, holidays, expensive meals out might be easy to cut down on for example, but if we're talking children in private schools, then it might be harder to explain to them why you're pulling them out of schools they may be very happy and settled in.
As for going interest only... I'm all for interest only mortgages, but be very careful that this doesn't turn into a long-term position. Only consider interest only if a) you are very confident that your income will improve reasonably soon or b) you are confident you can put the difference into some other repayment vehicle. From your posts, until you give us a clue to some sort of SOA, I'm not sure that either of these applies to you.
Sorry to be pedantic for a second...
Paying off your mortgage can indeed be thought of in terms of a form of saving (earning the rate of interest that your mortgage costs). But it is not an investment. Buying the house in the first place was the investment. That investment goes up or down irrespective of how much money you owe the bank.
I used to know someone like that. He made over £100k per year but was always short of cash. If he wanted something, he bought it, never mind if he could afford it. Then a bill that he "forgot" about would present itself and there would be a big panic as he tried to figure out how to pay it.
:A
I am extremely fortunate to take home more than the OP. However, even with this relatively large amount of money it is amazing how it slips through our fingers.
This board has helped tremendously in reducing the needless waste of money.
And? Bloody hell. MY GROSS TAKE HOME is just over 1/4 of that and I'm hardly struggling.
Stop wasting money if you can't live on £2500 a month after the mortgage.
Struggling with a repayment mortgage? If you've got £2500 a month to live on after paying it, you ain't struggling. If you had £250 a month, then you would be.
Methinks you need to get a grip.
Yeah.
The only things you NEED are gas, electric, water, council tax, food and clothing. Write down what you spend on those. Deduct that from the £2500 you have after the mortgage.
THE FIGURE THAT'S LEFT IS WHAT YOU SPEND ON NON ESSENTIAL FRIPPERIES.
That spending can be cut down or eliminated completely. You are in full control of how much money you have because it's you who is choosing how to waste the thick end of £500 a week on rubbish.