Mortgage free or forever home?

Sistergold

It is well and good to be mortgage free but you need to still be in a reasonable accommodation. You need to keep moving (within affordability of cause) until you are in ideal house/location. Life is too short to be stuck in a place you hate just to be mortgage free? 

lookstraightahead

My mantra in life (after houses and mortgages had previously got me into a lot of debt - I mean a lot, when things went wrong in my life), is just have enough to make you happy. Just enough. That changes with each person, I know, but it's stopped me over eating, buying things I don't need, having a house with extra rooms I don't use, buying a car just because it looks good etc.
Someone said this to me once and I'm forever grateful.

custardly

I would always choose the better home. Mortgage free is overrated.

HRH_MUngo

Mortgage free every time.

Zerforax

So in the end we made an offer on a house where we would've been borrowing close to our maximum. Unfortunately the vendors then decided to take off the market as their onward dream home was snapped up by someone else.

We've now had an offer accepted on a smaller property where the mortgage will be a lot more manageable. Time will only tell what is the right decision but sometimes the market forces you hand!

Ramouth

Thanks for the update and I’m glad you found somewhere.  If rates keep rising you might be glad you didn’t max out.  Wishing you a smooth purchase journey and every happinesses in your new home!

Woolsery

Zerforax said:

We've now had an offer accepted on a smaller property where the mortgage will be a lot more manageable. Time will only tell what is the right decision but sometimes the market forces you hand!

When you consider how much food and energy prices still have to rise, playing safe makes sense. I think there will be a few wild cards too, but I'm not talking about that here. It's enough to say some folks will probably regret being over-extended.

Enjoy your new home.

Megaross

Mortgage free any day.

Life is about more than slaving to buy that perfect house, to own a house is a relative necessity these days if you ever plan to retire. You've done it and now think, £300k instead of being spent on bricks and mortar could bring you years of memories worth much more. 

I'd personally use the savings to travel, live well and enjoy indulgences you wouldn't otherwise be able to afford. You won't wish you bought a nicer house on your deathbed - that's my take.

nicknameless

Mortgage free is an utterly meaningless concept in and of itself in terms of financial security.

Person A mortgage free, annual earnt income of £15k, no savings, no private or employment related pension provision.

Person B £200k mortgage, annual earnt income of £15k, £200k savings, nice DB pension paying out in 60s.

Who would want to be Person A (in financial terms).

Exceedingly blunt example, but point made.

Why the obsession with being mortgage free and with mortgages as a key element of finances.  Plan lifetime finances - mortgage is only one element of that.

Megaross

How did person B even get a 200k mortgage on £15k a year? I'd argue they would have had to have been earning sizably more money than person A for many years to have that level of wealth.