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Mortgage free - are there any disadvantages ??
DoshOwl
Posts: 2 Newbie
Hello,
Just wondering if there are any disadvantages (f.e. higher tax ??) at all to being completely mortgage free ?
Many thanks in advance for your responses and stay safe !
Just wondering if there are any disadvantages (f.e. higher tax ??) at all to being completely mortgage free ?
Many thanks in advance for your responses and stay safe !
0
Comments
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No, the only disadvantage is the loss of liquid cash, so make sure you have decent savings before starting to pay down your mortgage.Light Bulb Moment 13/09/17: Non- Mortgage Debt £42295; 01/04/19: £13645; 01/10/19: £9707; 01/11/19: £5525; 14/01/20: £883
27/01/20: DEBT FREE!!!
Mortgage Free Wannabee: £58595 to pay by August 20251 -
There will always be the debate that money spent on overpayments should be invested instead in order to make your money work harder. That only works though if your investments go well.
Not sure what you mean by higher tax?
"Everything comes to him who hustles while he waits" Thomas Edison
Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:1 -
No. I can't see any downside except liquidity. But I also think being mortgage free would save money each month and generate liquidity.Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
Total OPs: £295291 -
@Unicorn_cottage: I thought I'd heard that there might be some kind of tax you'll have to pay when you're mortgage free, but could be nonsense as well
...! 0 -
That would be a really weird tax...0
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No downside to it really but if you are not investing in ISAs and Pensions because of it you loose some tax benefits that way.
Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming0 -
My parents can remember a time were you got a bit of tax relief if you were paying off a mortgage... thats long gone...# 36 1p challenge 2024 - £536.60
#13 POYD by Christmas 24 £2875 / 81380 -
I can think of one, but only if you are of a certain age, where it might be a problem to get another mortgage.Explanation is, if you wanted an extension built or even buy a Buy to let property, you could add to your mortgage when you still had one, if MF then you would need to apply again, then if you are of a certain age, may not get the length/term you would like.Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_Now a Part Timer from 27.10.190
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