Mortgage Free - Sort of !

A bit about myself
43 yrs old, Married both in good jobs (20 and 10 years service in each) and reasonably well paid
2 kids (9 and 5)
I have an offset mortgage which is £ 65K oweing but I am fully offset and therefore don't pay a penny in interest. Am I classed as mortgage free or a wannabe ?

I draw down the payments made every month from the savings and need to do something with the money. I already have stocks and shares ISAs which are doing ok, but can help but think, why don't I just pay the mortgage off in full and get rid of it as I have other investments/shares which will pay me out £ 40K+ in the next 3-5 years to replace the savings.

Probably no sense in paying it off as it costs me nothing in interest and I am sure I could put the money to work elsewhere every month. Interest on savings is terrible so was thinking of just getting another mortgage and getting an investment property to rent out. However looks to be a minefield with tax and the likes and I like an easy simple life when it comes to finances. A tax return is daunting for me !

In a real dilemma of what to do and saving is the easy way out. Any ideas or advice gladly taken.:undecided


  • inigmainigma Forumite
    147 Posts
    Part of the Furniture 100 Posts Combo Breaker Debt-free and Proud!
    Why not pay the mortgage off and after a month if you still miss it take another mortgage out?
    Original mortgage free date 01/09/2036
    Current mortgage free date 01/09/2023
    Dream mortgage free date 01/09/2021
  • getmore4lessgetmore4less Forumite
    45.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What rate is the mortgage?

    I think of it as mortgage free.

    With an instant access to cheap credit for cash flow reasons.
    As long as you keep reducing to maintain the repayment schedule you don't risk over borrowing.

    if your S&S are performing better than the interest rate, borrow from your pot, and replace over time

    You have in effect the option to build up your other investments as and when like put the full ISA allowance in early each year and then replenish that from income.

    You could cycle the cash through monthly savers and other higher paying accounts, effort/reward might not be worth it.

    I would think of the savings as where your mortgage payment comes from, and do a budget(plan) based on being mortgage free where you can allocate all your income to the plan without a mortgage payment.

    Put in some long term goals and work back.
    At 43 I would be doing some serious early retirement planning could you put away enough to finish at 55.
    Might be tough as the kids will be 21 & 17 those years can be expensive.

    If you will be thinking of moving house to something more expensive you could do a plan based on you staring that future mortgage now.
    By the time you get there it will be a lot smaller.
  • bexster1975bexster1975 Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!

    I would also consider you mortgage free. Do you have additional cash in early access savings for emergency fund? If you do, I'd clear the mortgage and start thinking what you want to do with the cash that was a mortgage payment each month.

    Do you both love your jobs? I ask because no mortgage gives you the freedom to think again about what you want and why.

    I'm the same age as you and am mortgage free. It offered almost unlimited choices to me and I am working my way through them and deciding what fits best!

    Either way, you are in a very powerful position, think what you want to do with it as not everyone has the opportunity

    Bexster :)
  • beanieloubeanielou Forumite
    78.6K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    Another vote for being mortgage free.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • lgoochylgoochy Forumite
    11 Posts
    Second Anniversary First Post
    Thanks for the advice. I have some thinking to do
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