Is becoming Mortgage Free always a good thing?

foxtrot_mike

I will be fortunate enough already to be able to be mortgage free just before im 40!

However i do wonder if this is actually the most sensible thing to do.

The reason being is that i still have a desire, but no immediate plans (for a number of reasons) to move house from my apartment to a house.

My fear is that if i pay off my mortgage 100% now, and say need to apply for a mortgage to move house in say 3-5 years time then it might be harder to me to do so as opposed to porting my current mortgage.

Is that fear justified? or am i overthinking?

(Getting a Second Home could be an option)

[Deleted User]

It's not always the best thing to do, certainly not if your pensions still need attention.

savingholmes

It all depends on your attitude to risk too. There's a certain peace of mind that you would potentially gain by being mortgage free. It sounds like you need to see an independent financial advisor - and potentially pay for advice rather than be sold products.

strawb_shortcake

I've wondered this too, we are now in a position where we could pay our mortgage off next week (we are aged 37 and 42). However we've decided until our current deal ends we'll over pay by 10% and save the rest. In 3.5 years time we will then decide whether to continue with a small mortgage to pay off by my 50th birthday or pay it off completely.
If we pay it off when I'm 40 we will have to be very disciplined in saving money until I retire which I'm not convinced we'll do.
I am going to make some added contributions to my already good pension as we can rework our current savings to improve our disposable income and my pension. My husband may have a reduced life expectancy so he is loathe to invest in his pension as he may not see it; besides which my pension is more than sufficient for the both of us and will provide him with a lump sum and pension should I pass away first.
It's not been as an easy decision to make as I thought

julicorn

I wouldn't count on porting your mortgage being easier than applying for a new one. At least when colleagues of mine have gone through that process recently, it's been just as involved an application as just going with a new lender, and more than that on one occasion (that specific colleague's employment details had changed, and the mortgage provider he was locked into a fixed rate with would not generally be the first choice for his circumstances).

foxtrot_mike

@julicorn, i think that's right but I think my concern stems from whether i would be able to apply for a new mortgage again, after taking say a 2 year break as opposed to keeping a mortgage trickling on even if that means a completely new mortgage with a new company that knows im effectively just moving mortgage providers.

Zero_Sum

My 1st house, i paid off mortgage as early as I could.
Then I fancied doing a bit of credit card stoozing & couldnt get an interest free CC for love nor money, as I had no debt (had a cashback one I paid off in full each month)
Now onto next house, new mortgage, got several 0% CC's no probs.
So with interest rates low I have no plans to pay it off soon. In fact im stoozing the mortgage itself.

Zero_Sum

foxtrot_mike wrote: »

@julicorn, i think that's right but I think my concern stems from whether i would be able to apply for a new mortgage again, after taking say a 2 year break as opposed to keeping a mortgage trickling on even if that means a completely new mortgage with a new company that knows im effectively just moving mortgage providers.

I dont think that would be a problem. I had a 5 or 6 year break.
Just go & see a mortgage broker, as long as you can prove your income and dont have much in other financial commitments you'll get sorted.

As i mentioned above, its more getting best credit cards & loans which could prove more difficult due to lack of debt history.