What do do when you're mortgage free?

Steve123456789

AnotherJoe wrote: »

Then start looking for one you like.

I hate work. Not just my job.

SouthLondonUser

Steve123456789 wrote: »

The additional security of owning your whole house. No one can take it away from you. There are no mortgage payments to miss. I'd definitely sacrifice an extra 1% interest to have paid off my entire house.

Again, I don't understand. We were talking about the merits of repaying the mortgage vs investing the money elsewhere. If you have a £100k mortgage charging 1.3% but also have £120k in saving accounts yielding more, how is that less secure than having zero mortgage and £20k savings? Hassle and flexibility are one thing (as discussed), but security??

20SmthngSver

Steve123456789 wrote: »

I'm sure this has been asked a million times, but I thought I'd ask from my personal perspective. If all goes to plan, I should be mortgage free on a 4 bed house at the age of 32 or 33.


I'm getting a bit ahead of myself, but what would you do?


My plan is to either retire early, around 50ish, at the latest hopefully, or go part time as soon as mortgage is done, and work until whenever I need to.

A 4 bed house where in the country though? Completely dictates the size of your mortgage and how you could possibly be mortgage free by 32 (what age are you now?) Bedrooms is irrelevant in this, a two bed house 2 hours away could be mortgaged for as much or more.

Seems a bit odd to talk about a hypothetical for in 20+ years time, but if you think with how the cost of living is going already and in the past decade that you'll be able to retire at 50 and if in good health feasibly live up to 100 years old, meaning 50 years not working (maybe 20 years part time) then you can think again lol. How will you fund food, council tax, electricity, gas, fuels, media and comms charges, holidays, repairs for up to 50 years on a pension and savings if it's not making anything?

Steve123456789

20SmthngSver wrote: »

A 4 bed house where in the country though? Completely dictates the size of your mortgage and how you could possibly be mortgage free by 32 (what age are you now?) Bedrooms is irrelevant in this, a two bed house 2 hours away could be mortgaged for as much or more.

Seems a bit odd to talk about a hypothetical for in 20+ years time, but if you think with how the cost of living is going already and in the past decade that you'll be able to retire at 50 and if in good health feasibly live up to 100 years old, meaning 50 years not working (maybe 20 years part time) then you can think again lol. How will you fund food, council tax, electricity, gas, fuels, media and comms charges, holidays, repairs for up to 50 years on a pension and savings if it's not making anything?

What you've just said is that I shouldn't bother thinking about retirement because I'm young, and that I won't be able to retire at 50 anyway.


I'd happily work part time for much longer than that, from as soon as I pay off my mortgage.

20SmthngSver

I didn't say that at all and that's not true. I'm young, and I've thought about financial preparations for retirement, such as paying into a private pension which I do.

But you're really getting ahead of yourself and not thinking about what's going on now which will affect you in 30 to 40 to even 70 years time. That is of course assuming you live a long life.

If you was mortgage free now, could you afford to work part time? If no, then how could you in 20-40 years? The cost of living is only going up, wages aren't at the same rate. You didn't answer how you'd pay for all of the basic and compulsory day to day and week to week things I listed. If you want to retire at 50 that's fine if you can, but what are you going to do everyday until you're 90 or 100? What if something goes wrong and you end up with no money at 55? You won't get your state pension until probably 70 by the time we reach that age. Have you worked out what your monthly outgoings are now plus contingency? You'll need a lot more of it in 40 years the way it's going.

I think you need to be thinking more realistically and in here and now, then the future will look after itself.

seanh95

Well said. Personally think if you dont like your job find your passion and you will love work. All good and well being mortgage free but will that easy life really help you grow etc?

What will you do with your time, goals etc?

20SmthngSver

I'm young but I'm extrmemely offended by the tarring of the term millenial. Please do smear all of us like that!

MizzPenniless

Steve123456789 wrote: »

The reason I'm considering part time work ASAP is that I hate work more than I can describe with words.

My sentiments exactly. I left my job 2 months ago, with the idea of temping and travelling when I'm not working. So far I've done no travelling, but I am starting a 4 week temp job on Monday and am dreading it. It is amazing how quickly you adapt to not working and having your days to yourself to do as you please.

Steve123456789

20SmthngSver wrote: »

I didn't say that at all and that's not true. I'm young, and I've thought about financial preparations for retirement, such as paying into a private pension which I do.

But you're really getting ahead of yourself and not thinking about what's going on now which will affect you in 30 to 40 to even 70 years time. That is of course assuming you live a long life.

If you was mortgage free now, could you afford to work part time? If no, then how could you in 20-40 years? The cost of living is only going up, wages aren't at the same rate. You didn't answer how you'd pay for all of the basic and compulsory day to day and week to week things I listed. If you want to retire at 50 that's fine if you can, but what are you going to do everyday until you're 90 or 100? What if something goes wrong and you end up with no money at 55? You won't get your state pension until probably 70 by the time we reach that age. Have you worked out what your monthly outgoings are now plus contingency? You'll need a lot more of it in 40 years the way it's going.

I think you need to be thinking more realistically and in here and now, then the future will look after itself.

Yes, easily. On a month where we don't overpay, our outgoings as a couple would halve. On a month where we make an overpayment, they'd more than half. In this year, my entire take-home salary, plus a bit of hers went on the mortgage, and we've still saved money. With no mortgage, I could completely quit work, we could live off my wife's salary, and we'd still be better off than we are now. Obviously one of us won't quit work while the other works part time though.


Yes. I've been filling in a spreadsheet of spending for years and know how much I spend on pretty much everything. As above, with no mortgage we could live off part time jobs.


I wasn't asking for advice, more just querying what people do.


Not wanting to work isn't lazy, it's sensible.

pjcox2005

Just to add a different view, I'm mid-thirties (still with mortgage) and went down to 4 days a week (although contract is actually slightly longer work in the 4 days so it's not a full 20% reduction).


Love it, gives an extra day to spend with the kids whilst young, loses the top end of salary (i.e. 40% taxed element, plus no childcare) made it quite economical. Intend to keep the day off when they're at school to enjoy my hobbies and therefore mean I free up time at weekends to be with family.


I really think more people should explore it.


On early retirement, if you're earning well and planning for it, then I see no reason why it's not possible as long as you avoid too much lifestyle inflation as wages go up.