How much to live on

blue.peter

[Deleted User] said:

I checked that my house is registered with HM Land Registry and shows the correct ownership. When you pay off your mortgage the name is the lender is removed from the digital paperwork. 

Perfectly true. However, there are still good reasons to have the deeds. They provide more information than just a simple record of ownership. For example, they set out things like the exact physical extent of the property in question (i.e., the boundaries), which fences the property owner is responsible for, any restrictions on use... the list goes on.

[Deleted User]

As mentioned above, below is my spending in 2021 after update and edit.

In terms of spending, it was an exceptional year as some expensive home improvements were completed.

Spending 2021

All Bills including utilities, food, petrol, internet, landline, mobile                                8580

Subscriptions                                                                                                                 210

Insurances and Car Tax                                                                                                 567

Voluntary NI Top Up                                                                                                         31

Car Service MoT and Car Repairs                                                                               1000

Christmas Birthdays                                                                                                     1000

Clothes                                                                                                                            750

Dentist                                                                                                                              163

Travel                                                                                                                                300

Personal Discretionary Spending                                                                                    3500

Grand Total                                                                                                                     16101

Notes

I share bills with an older relative, but I pay the greater share as my income is also greater.           

I also spent a considerable sum on home improvements this year including Kitchen upgrade, new garage roof, new conservatory guttering, garden improvements and some new fixtures and fittings including furniture. This came to a grand total of £26500 which came from savings and  part time earnings.

Total income for the year including, occupational pension, an annuity and part time work was

£23114 net after tax and National Insurance payments.

I have 3 years until I can claim my state pension.

[Deleted User]

blue.peter said:

[Deleted User] said:

I checked that my house is registered with HM Land Registry and shows the correct ownership. When you pay off your mortgage the name is the lender is removed from the digital paperwork. 

Perfectly true. However, there are still good reasons to have the deeds. They provide more information than just a simple record of ownership. For example, they set out things like the exact physical extent of the property in question (i.e., the boundaries), which fences the property owner is responsible for, any restrictions on use... the list goes on.

You can also download a document from HM Land Registry that clearly shows the boundaries of your property. I believe the cost is £3

[Deleted User]

'The number to beat when looking at cold hard numbers alone is the mortgage interest -  will your overpayment save you more in mortgage interest than you could otherwise earn on the overpaid sum.'

At the time my mortgage interest rate was incredibly low. Yet I saved a great deal in future mortgage interest. No regrets at all. Peace of mind far greater benefit to me than always maximising financial returns.

MovingForwards

[Deleted User] said:

blue.peter said:

[Deleted User] said:

I checked that my house is registered with HM Land Registry and shows the correct ownership. When you pay off your mortgage the name is the lender is removed from the digital paperwork. 

Perfectly true. However, there are still good reasons to have the deeds. They provide more information than just a simple record of ownership. For example, they set out things like the exact physical extent of the property in question (i.e., the boundaries), which fences the property owner is responsible for, any restrictions on use... the list goes on.

You can also download a document from HM Land Registry that clearly shows the boundaries of your property. I believe the cost is £3

Original deeds help show if boundaries have moved.

Title plan is free in Scotland, the deeds currently cost £3.60 incl VAT, comes in handy when looking at properties and wanting a garden.

hugheskevi

I always found it interesting how many people preferred to overpay mortgage rather than put money into an investment ISA citing financial security back in the days when myself and my friends had just purchased first properties.

Yet when the outstanding mortgage is big, overpaying mortgage gives less security than having a pile of invested money that could be drawn upon should the need arise.

I always used to measure my financial security in terms of how long I could continue with my life without any change should all my income go to zero overnight. With even fairly small amounts of invested cash, that metric was much larger than if I had put all funds to reducing mortgage, which would still have left me in a precarious position should all my income sources go to zero despite the lower outstanding balance. Once that figure started to stretch into years rather than months it became of little interest.

[Deleted User]

Maybe having a big pile of money is not the prime aim of some people.

[Deleted User]

I also feel that the continued discussion about overpaying the mortgage/clearing the mortgage is taking this thread away from its main purpose.

RetSol

I always used to measure my financial security in terms of how long I could continue with my life without any change should all my income go to zero overnight. With even fairly small amounts of invested cash, that metric was much larger than if I had put all funds to reducing mortgage, which would still have left me in a precarious position should all my income sources go to zero despite the lower outstanding balance. Once that figure started to stretch into years rather than months it became of little interest.

This, in a nutshell, is why I did not repay my mortgage when I left the civil service on ves in 2010.  In addition, the recent low interest rate environment has certainly had a bearing on my thinking. 

I am finding this discussion useful as I seem to have reached similar conclusions on a number of topics to @hugheskevi although in my case it was by feeling my way and gut instinct rather than by planning and number crunching.

I think too that, when planning retirement, paying down/off the mortgage is far from being a no-brainer.  

I find it useful to read different views. As ever, all depends on one's individual circumstances, preferences, aptitudes and attitude to risk. 

RetSol

Peace of mind far greater benefit to me than always maximising financial returns.

Trying to optimise returns can be fun!

Admittedly, it is more fun if one has the luxury of being able to regard it as a fringe activity rather than as critical to one's financial survival.