We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Used to idea of never being mortgage free
pgalland
Posts: 97 Forumite
My partner and I bought a 4BR semi in London 18months ago, pourring all our savings into it and still had to take a £800k mortgage.
I realize this is high risk, as 75% of our net-worth is tied up in real estate.
We are both in our early 30s and we have come to accept that we won't be mortgage free until we retire in 20yrs or so.
Even if we were to over pay our mortgage a little every year, it just seems to have no effect given how enormous the principal still remains after that. Additionally, we do not feel like sinking any more money into the house / and real estate in general (we completed a full renovation as well) - and are in the process to diversify our networth.
I have to admit that we won't feel good until our house doesn't account for more than 50% of our networth... that prob won't happen within the next 10years either.
Real estate cost nowadays are really change the deck of cards we're dealt with.
The only comfort in all this, is that we've managed to secured a good rate BoE + 1.49% for another 2 years, and hoping to lock ourselves in a 5year rate after that.
I realize this is high risk, as 75% of our net-worth is tied up in real estate.
We are both in our early 30s and we have come to accept that we won't be mortgage free until we retire in 20yrs or so.
Even if we were to over pay our mortgage a little every year, it just seems to have no effect given how enormous the principal still remains after that. Additionally, we do not feel like sinking any more money into the house / and real estate in general (we completed a full renovation as well) - and are in the process to diversify our networth.
I have to admit that we won't feel good until our house doesn't account for more than 50% of our networth... that prob won't happen within the next 10years either.
Real estate cost nowadays are really change the deck of cards we're dealt with.
The only comfort in all this, is that we've managed to secured a good rate BoE + 1.49% for another 2 years, and hoping to lock ourselves in a 5year rate after that.
Total Debt (inc. mortgage)31/12/2012 - £893k31/12/2022 - £1.703m
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards