Mortgage free but underwhelmed.

marco_79

We have been following these threads in the background for years now and have taken inspiration from many along the way.

We have been actively paying off our mortgage aggressively for the last 5 years and following an inheritance coming through we decided to pay it off altogether by adding some savings to what we inherited. A part of me is relieved that it is gone now. Apart of me thinks I should have invested the money instead and continued what we were doing paying it off and apart of me thinks I should have blown the inheritance on a fancy car and a trip to Vegas. I know however that my grandparents would have wanted me to clear the debt so that's what I did. Paying off the mortgage has been such an important goal for us the past few years but now its done it feels very underwhelming. Did anybody else feel like that or it just my weird way of thinking? 

LadyWithAPlan

Maybe you need time for it to sink in that you have no more payments beyond utilities etc? And then quickly save up your would be mortgage payments and go to Vegas anyway  

TimSynths

No matter what- you are mortgage free now. Have a coffee and take stock, you have ticked off one of life's goals.

El_Torro

I've never really understood the urge of many people to pay off the mortgage as quickly as possible, especially considering how low interest rates have been for some years now. On the plus side you can put the money you would have spent on repayments into investments now if you wish.

One option would be to remortgage your house and invest the money you get. Or blow it all on a trip to Vegas or whatever. Then you can go back to making monthly repayments. Not that I'm recommending this course of action, just saying it's an option.

bexster1975

Hi Marco

I think letting it sink in is a good idea. Also, I was going to suggest, as others have, that you can now invest what you were paying towards the mortgage. I wonder if getting to the finish line, due to inheritance, has led to the anti-climax. As for people anti-mortgage free wannabe, I think many miss the point. It's about security and peace of mind. I don't think many would say it's better financially to pay off your mortgage rather than invest. I paid my mortgage off about 6 years ago now. At about the same time I became very ill, and I was able to make a decision to leave a toxic work environment and set up my own business only due to the fact I was mortgage free. I have never looked back. Enjoy it, and good luck with the next chapter.

Bexster. 🙂

South_coast

I became MF in May and I can completely relate. I went from focusing on clearing the mortgage to plunging headlong into a list of savings targets, so aside from the initial novelty of cancelling the standing order and deleting the bank as a payee on my internet banking etc, nothing has really changed. I'm still putting just as much money away each month towards future goals - the only difference is that the money is still in my bank account instead of being transferred elsewhere. Plus, because it's not really something you talk about, aside from a quick hurrrah on here, you can't really share your success with anyone. After so long focusing on it, it's a bit of a non-event when it actually happens. 

If I had my time again, I would do something to mark the occasion like buy something nice for the house or have a night away, just so that I could look at it/remember the experience and think back that that's how I rewarded myself. And I would definitely wait a few months before going mad on the savings, and instead enjoy having a bit more spare cash. 

I certainly don't think you made a bad decision in putting the inheritance into the mortgage. It's something you've been focusing on for a long time and it's natural that you went with your gut when you found yourself with some extra money. Now the mortgage is gone you can relax and spend your money however you want without that nagging feeling in the back of your mind that you should be using it for "something better". Good luck!

marco_79

Thanks for all your kind comments. A lot of that makes perfect sense and is aligned with our thinking. We are going to take a family trip to London with our kids in October, see the sights, catch a show etc. We are then going to focus on our ISAs and longer term goals. Our oldest daughter is pursuing medicine and we are happy that we may be able to help her through University now with less worry.  I think as some have said that it is also important to enjoy the extra cash and not focus it all on savings. We have lost a lot of people close to us in the last 2 years which has proven this to be very important.  

andys15

I have been mortgage free for one pay day now and I have the same feeling. 

I have made mistakes doing it. 

I had remortgaged back in early 2020 to get a loft conversion and garage conversion. The loft conversion got turned down. 

I was so tempted to put that money into the markets as the FTSE had dropped to about 5500, but instead I paid it back to the mortgage and then went on a mission to pay the house off. 

Now its gone I am wondering why I did it. 

We are saving for early retirement, but what do I do to the house?  Will I ever see that money personally or will it just be left to the kids when we pass?  

I have suggested to the wife to sell the house one day and retire even earlier with some of the proceeds but she doesn’t ever want to sell it, so I wonder what the point of owning it is.

LadyGnome

I have been mortgage free in the past - we now rent that property out.  We have a mortgage on our current property which I am paying down.  The main things about being mortgage free for me was the element of choice e.g. if you hate your job you aren't tied to producing a particular income to cover the mortgage and security i.e. if things go pear shaped you won't lose the roof over your head and downsizing is an option if you need capital.

It gave me a sense of freedom.

powerspowers

I’m a long way off being mortgage free but I think I understand the feeling you are describing, a bit like “now what?”
I’d take some time to enjoy your money - say til Christmas. Splurge and do things you haven’t let yourself do.

Then take some time to look at your life and what you want to do. Think about your broader aims and dreams and things you’d like to offer your children. And then see where the extra money each month can help or the extra time you gain not having to earn as much to live. 

I also think that mortgage paying can get a bit all consuming so changing to multiple, wider goals can be a bit challenging. Good luck and congratulations 👏 

frostiecuk

We became MF last week and we had 20 mins of smiling, feeling great, and then back to normal life.

What we plan to do with the savings, until we come up with a better idea, rightly or wrongly, is split it across;
- Childrens SIPs
- Childrens ISAs
- Invest in more funds (both ISA and NonISA)
- Buy nicer branded coffee

Just to be clear, we're in 40s, have 2 little ones in primary school and have relatively healthy pensions and savings still, should the need or want arise to do something on the Vegas level.

Complete understand the underwhelming feel, and yes, rates are nice and low, but given they are likely to creep up, remind yourself that by paying off, you are saving x.x% now, and xx.x% in the future. This coupled with potential return on investments then you are potentially saving, safely, quite a lot.

Swings and roundabouts, horses for courses. etc - not everyone will think what I, you or the next person does, is the right thing. In the meantime, as has been suggested, kick back, enjoy a Tetleys as opposed to Asda own brand, and put up your newly purchased slippers