Are "mortgage free wanabees" rethinking due to interest rates?

ClarkeKent

In light of another report today stating that interest rates are unlikely to rise till 2021.

Are any "mortgage fee wannabes" having a rethink about incessant saving now that interest rates are so low and are likely to remain that way. Perhaps considering taking the foot off the pedal for a bit?

Or does a slightly shaky economic climate provide even more incentive to pay off and get clear?

A_Frayed_Knot

No chance, I'm keeping my foot firmly on the pedal to being MF

I have a dream ...............

purplevamp

I think it's best to pay off as much as you can whilst the interest rates are still very low. That way, when they do rise the extra you have to pay won't be as much (IYSWIM?!). This is just my opninion and not the law

cookie9

Being MF or at least working towards that would mean benefiting from no debts and only investments when rates do increase.
If we were told that interest rates were going to substantially rise next year and the next few years then I would consider using emergency funds to reduce the mortgage now as we are on a fixed deal however currently most MFW make OP and also have emergency funds.

lippy1923

Low interest rates just give me the incentive to get rid of it ASAP while things are cheap. I OP the max I can each month and any extra gets saved in current accounts at higher interest rates building up a mortgage neutral fund, ready to pay off the balance when the time is right.

hildosaver

If anything that news makes overpaying a mortgage even more of a good idea imo. Pay it down and lock into long-term low interest deals.

Slave_to_the_job

I have been over paying 500 per month for last three years and then last week had an unexpected income of 100k. Total mortgage outstanding is 82k. I have wanted rid of the mortgage for three years now but now I have the chance I don't really know what to do

There_Is_a_Light

I am saving in higher interest accounts to make the most of these as my mortgage interest is 1.49% It makes sense to me to build up a mortgage neutral pot while I can get a higher return on savings so that I can pay it off the capital should rates rise.

There_Is_a_Light

Slave_to_the_job wrote: »

I have been over paying 500 per month for last three years and then last week had an unexpected income of 100k. Total mortgage outstanding is 82k. I have wanted rid of the mortgage for three years now but now I have the chance I don't really know what to do

Blimey, that is a hefty amount of unexpected income:eek:

Slave_to_the_job

It is indeed and I am very lucky but hard to know what to do with it for the best - just feel like no mortgage at 32 would be a nice place to be

ClarkeKent

Slave_to_the_job wrote: »

I have been over paying 500 per month for last three years and then last week had an unexpected income of 100k. Total mortgage outstanding is 82k. I have wanted rid of the mortgage for three years now but now I have the chance I don't really know what to do

A tough call, although paying off a mortgage is great and makes sense. It can turn into a bit of an obsession like it has for me, where now I can't really give up the challenge, almost turning into some life acheivement which is a bit sad really.

With interest rates low, it doesn't always make sense either. If you can get a yield/return higher than your current interest rate. eg. Our mortgage interest is 0.67%(BR+.17% tracker)

Plus with a potential shaky economy always handy to have cash at the ready (whether that be earning interest) rather than it on the other side of the wall with the bank.