£70k - 2 years and counting - NOW PAID 08/04/22!!!!!

MrsLovely

Saw my dream house 3 days ago which has just come into the market. A house like this does not come up often at all. Spent last 3 days discussing what we should do. Buy dream house and increase mortgage by £50-60k or stay on track to be mortgage free in 14 payments/months and stay where we are. Why do I do this to myself? Anyone else do this? I struggle enough as it is at work, yet the challenge of achieving something is such a pull. But I know it would be another 3 years of money shuffling, being tight and feeling the weight of this burden on my shoulders. 
Problem is this little voice on my shoulder and that bit in me that is driven to take on the next challenge!
Long discussions today have concluded that we wont go for the house. Financial freedom and health and life choices come first. Plus, not exactly great out there at present in light of covid.  
Just sharing thoughts. I know I'd be stupid to place more mortgage debt on us, but does anyone else get torn or distracted off plan at times?

caeler

Oh bless you! This happened to me in 2012 and I’m afraid I took the leap to go for it and nearly doubled my mortgage! I’m nearing the end now too and I really want to see the end. Financial freedom for the win! 

MrsLovely

caeler said:

Oh bless you! This happened to me in 2012 and I’m afraid I took the leap to go for it and nearly doubled my mortgage! I’m nearing the end now too and I really want to see the end. Financial freedom for the win! 

Hi Caeler, I dont know if I'm being over cautious and others would go for it, or it's just a stupid idea and I need to get real!! Suppose it depends on your risk profile and if we have the energy to do another one last push and delay being MF for another 3/4 years. Current mortgage £43k and will be paid off when DH takes his 25% pension in Feb 22. At that stage we would then have about £40k outstanding on the 2nd mortgage we would have to have to move. At that stage I would be 47 and DH 55. Between now and then we would run the 2 mortgages concurrently so yes it would be tight financially for about 12 months. Total mortgage payment would be £1600 per month. I could reduce mortgage 1 payment by say £300 to £400 pm by using overpayments already made. The 'double mortgage' payment would be quite affordable then, assuming income remains as it is. Dont see any reason that it would change, if anything, my salary will increase a little. 
I hate having to have these decisions. I know all self made problems,  and am very lucky to have what we have. 

Bargainhunter30

Have you looked at the pros and cons of buying the new house. Your post is very money focused but sometimes it's worth paying a bit more if it will improve your quality of life. What are the reasons for wanting to move I guess and is it worth the extra frugality?

MrsLovely

Bargainhunter30 said:

Have you looked at the pros and cons of buying the new house. Your post is very money focused but sometimes it's worth paying a bit more if it will improve your quality of life. What are the reasons for wanting to move I guess and is it worth the extra frugality?

Thanks Bargainhunter for your comments. Quality of life is excellent where we are, and current house was the forever house! The house is in our village,  where hardly anything ever comes up. So it's about grabbing the opportunity of the character dream. I am really rubbish at making big life decisions and unfortunately anxiety kicks in terribly  to the extent it stops me from being able to make a decision, and whichever way I make the decision will overthink it every waking hour. DH is opposite which i so admire. I am also the main earner and will administratively 'make it happen', so it's about whether I want the challenge and the financial challenge. 

Bargainhunter30

Playing devils advocate, I would say if you're happy where you are is 'the character dream' worth 50k and what other dreams will you have to sideline/compromise on for that one?? It may be worth every penny, but just something to think about!

MrsLovely

1st of the month money shuffle time. 14 payments to go and sitting at £43,968. 
Looks like we won't move and increase mortgage. Feel so much better having made the decision,  but still dream of that house. It's not sold yet.  Really wish I was more brave! But I suppose listening to your gut and being safe is the safe bet. Next time I post will be 2021! Hoping for a far more positive year next year!

happymum37

Hello!!!! I finally figured out how to find your blog thingy.  Bloody hell at 38 in horrific at computers!! Read your previous posts and we are very similar apart from the age of the kids.  I have 2 under 8.

If the new house is meant to be it will be.  I must admit my hubby wouldn't move full stop unless we came into big money.  If we got given 100k he would prefer to retire early.  

Keep going your doing so well. The end is in sight. Can i ask how do you decide how much savings to keep? That's what we can't decide on.  
Best wishes
X

L9XSS

Hey just checking back in on your thread. You must only be 11 months away from paying off the mortgage now? Did you resolve the “moving house” thoughts fully?
ive got 14 months to go to be mortgage free (if I do the same thing, ie use some pension at 55 to pay off the 30k that will be left at May 2022). My dilemma is do I use the pension money, savings or keep on plodding away for another 2.5 years, remortgage with the NatWest, reduce payments by £200 but keep the repayments the same and clear the term late 2024.
Decisions decisions!

MrsLovely

L9XSS said:

Hey just checking back in on your thread. You must only be 11 months away from paying off the mortgage now? Did you resolve the “moving house” thoughts fully?
ive got 14 months to go to be mortgage free (if I do the same thing, ie use some pension at 55 to pay off the 30k that will be left at May 2022). My dilemma is do I use the pension money, savings or keep on plodding away for another 2.5 years, remortgage with the NatWest, reduce payments by £200 but keep the repayments the same and clear the term late 2024.
Decisions decisions!

Hi, what a nice email to see on my way to work!!
Thanks for asking,  but I know too we are on similar timelines. Yep....11 payments to go!! Husband and I beside ourselves with excitement! Work so busy just not had time to do my usual 1st of the month update. 
Well, we put the house up for sale, had lots of viewings, then went into xmas lockdown.  Then we thought 'do we really want to move?'. Move house or live life to the full, with no worries? So we chose the latter. So pleased, just looking forward to lockdown being over!! Freedom!
For you,  do you want complete freedom in 14 months, or stash your pension 25% in savings, or leave your 25% in? I know financially taking husbands 25 % may not be the most cost effective decision,  but we have saved thousands over the years in interest on the mortgage overpayments,  but I also don't feel we lose much on monthly pension payments if we were to leave it in.
So, in November we will be filling in the pension form to apply. We've worked so hard, saved so hard, made sacrifices (although have never felt we've done without), been clever with money, made do....so, it's getting done. Goodbye mortgage! Let me know what you choose to do.