Low Rates = Massive Mortgage Payoff?

wymondham

As rates have been so low for a considerable time and it looks like they are not really going anywhere soon (possibly down??) - have we witnessed people taking advantage of these rates and paying off their mortgages in large numbers?

I know probably most people maybe on a fixed rate, but the timescale for these super low rates is now longer than most peoples fixed tie-ins, so most should by now be on very low interests rates?

mwpt

I have not. I instead invest spare cash and try to make returns greater than the interest payments on my mortgage. This will be available at a future date to pay down the mortgage should rates rise.

Wednesday2000

We are slightly overpaying our mortgage, but most of our money is being put into our pensions.

Out,_Vile_Jelly

I've been overpaying since I took my mortgage out two and a half years ago. I can overpay up to 10% of the outstanding balance and I aim to do that this year. I'm too cautious to gamble on stocks/shares and savings rates are so depressing, this seems the obvious destination for spare cash.

michaels

I maxed out my mortgage and generally have made money 'on the turn' using instant access cash savings but this has become a lot harder over the last 6 months

Sapphire

I've paid off my mortgage and feel so much more relaxed about financial matters (and freer) since I did.

bugslet

I ended up with a tracker mortgage in 2007, more by luck than any foresight. I've kept the same payment, even though I could have paid around 40% less.

I'm paying into a pension, over-paying the mortgage and have a bit in savings. I wouldn't choose to massively overpay the mortgage at the expense of other savings.

018125

You only overpay a super low interest rate loan if you are financially illiterate.

Dan83

Nope, my spare money has been spent enjoying life.

lippy1923

Mortgage neutral fund is being worked on at the moment. When the time comes, a nice big OP will be in order.

mwpt

Sapphire wrote: »

I've paid off my mortgage and feel so much more relaxed about financial matters (and freer) since I did.

Each to their own but personally I feel more free when I've got a pile of cash available in case of emergencies or better, for opportunities, rather than equity tied up in a property.

But if rates rose I'd recalculate and see if it was better financially to pay down the mortgage.