Why be mortgage free?

Serious question. I understand that paying mortgage payments is something we’d rather do without, but honestly, I need help understanding the appeal of paying off a mortgage entirely. 
It seems to take an awful lot of effort and determination to get there, lots of sacrifice, only to be in a house where a huge amount of equity is tied up in it, which you can’t get to - unless you do an equity release and end up paying the equivalent of mortgage payments again, or downsize. 
The only benefit that I can see is leaving a large asset in your will. 
Am I missing something?
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Comments

  • Why does it have to be lots of sacrifice?  How fast anyone pays off a mortgage is down to them, people choose to do it at a rate that is best for them, or don't pay it and let it run full term.

    A 25 yr mort. at 3% for 150k, pay off £50 per month would save you over 6k (these are rough figures) and pay off you mortgage about 2.5 yr earlier.  If you take it out when you are say 25 it would be paid off by the time you are 50 if you stay in the same house.

    Have a rented house at say 25 years old, pay rent for the rest of your life, pay off a mortgage for someone else!  Someone else has an asset paid for by you.

    What if you need care later in life, is it ok to expect your family to pay for it or use your house as insurance?  

    Have a read of the first few pages of the great diaries on this board, you will find many ideas as to why people what to pay off early.... as with anything it is personal choice?

    As for leaving a large asset, I really don't see why this is a problem, you'd be paying a lot more for a property if you lived in it for say 60 years and never own it, I'd have a bigger problem with this... but each to their own.


    MFW -  01 10 21. £63761 01.10.22 £50962 01.10.23 £39979

  • Frith
    Frith Posts: 8,140 Forumite
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    My motivation was that my disabled son would be able to carry on living here if I snuffed it (I’m a lone parent). 

    I do have life insurance but that sum could go to my other son now and there would be minimal paperwork. 

    I very much enjoyed seeing my monthly interest payments plummet. I saved thousands in that way. 
  • If you don't have to pay for a roof over your head you can get by on quite a small income. OH and I are having a great life having retired early as we don't have a lump of money to pay out every month on a mortgage or rent. It's a great comfort to know that if the shtf at least we've got a home.
    Fashion on the ration challenge 2023: 66 - 2 = 64 - 1.5 = 62.5
  • Frith
    Frith Posts: 8,140 Forumite
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    I would also add that I learned a lot of things along the way. Like many, I scraped through GCSE maths but never felt confident using it. 

    I’ve learned (or re-learned) about compound interest, how to calculate an 3% overpayment charge and more about LTV, fixed rates etc. 

    Generally reading across this site over the years has finally got me central heating (green homes grant), disabled discounts, Quidco and other savings. 

    Ive learned the best deals with utilities and savings accounts. I could have researched these things anyway, but would I have bothered if I hadn’t set myself a mortgage free target? 
  • bmthmark
    bmthmark Posts: 297 Forumite
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    My motivation is knowing that eventually I will have no mortgage or rent to pay so I don't have the stress of finding a load of money each month. 
    If I only rented I would hate it knowing that when I retire I would still have to continue to pay rent.
    Where I live rent is very expensive £1k+ a month, knowing that you would have to pay that in retirement would be a nightmare.
  • bmthmark
    bmthmark Posts: 297 Forumite
    First Anniversary First Post Combo Breaker
    If you don't have to pay for a roof over your head you can get by on quite a small income. OH and I are having a great life having retired early as we don't have a lump of money to pay out every month on a mortgage or rent. It's a great comfort to know that if the shtf at least we've got a home.
    This is exactly what me and my wife want to do
  • It’s part of my plan to be able to retire early. Sooner the mortgage has gone, sooner I’ll be able to drop hours at work. 
    This is all alongside aggressive investing. 
  • Trina90
    Trina90 Posts: 541 Forumite
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    edited 8 September 2021 at 6:49PM
    Saving interest.
    Being able to use the money you were spending on a mortgage every month on something else.
    Security.
    Dropping income (I'm pregnant. Overpaying our mortgage for the past 6 years will enable me to be a stay at home mum for a few years at least)
    Mortgage started 2015: £150,000 2016: £130,000 2017: £116,000 2018: £105,000 2019: £88,000 2020: £69,000 2021: £51,195 2023: MORTGAGE FREE!
  • london21
    london21 Posts: 2,096 Forumite
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    Must feel great to be mortgage free.
    The interest rates are at a very low rate at present but when they rise will be nice not to be putting money into the banks hands in the form of interests.
    One must live within one's means and be realistic.
    Been mortgage free is a desirable goal but a property bought years ago when prices were reasonable is different to today's prices.

    Also one must take into consideration various factors such as location, income, disposable income, dependants,age  etc.



  • I quite like the idea of being able to choose to work at something simply because I want to do it rather than having to look at the salary levels.  Once the mortgage is gone I will be much freer to pick and choose what I do without having to worry about pay.
    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
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