Mortgage free or forever home?

nicknameless

Megaross said:

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.

Thanks for missing the point totally lol.

They moved to part-time obviously.

Zerforax

Woolsery said:

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.

Hopefully the stuff on the horizon tempers the market. Not convinced with our sellers as they seem they could be flaky.

Megaross

nicknameless said:

Megaross said:

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.

Thanks for missing the point totally lol.

They moved to part-time obviously.

Exactly, person B was a higher earner. Entirely not comparable, besides, how will he remortgage when he's part time.

And anyway, person A - why has he opted out of a pension if he was on par with person B?

Not comparable

grumiofoundation

Megaross said:

nicknameless said:

Megaross said:

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.

Thanks for missing the point totally lol.

They moved to part-time obviously.

Exactly, person B was a higher earner. Entirely not comparable, besides, how will he remortgage when he's part time.

And anyway, person A - why has he opted out of a pension if he was on par with person B?

Not comparable

I think the point was you can’t just take one aspect of finances in isolation - ie being mortgage free?

But if you do want an example of where an obsession with being mortgage free can be damaging financially. Someone I know opted out of their workplace pension to overpay their mortgage - despite explanations to the contrary they were adamant that being mortgage-free was the only financial security that mattered. 

To overpay an extra £2000 a year on their mortgage they sacrificed £6000 in their pension (10% Sal sac Matched by employer)?

On a side note at the end of a fixed term you are able ‘remortgage’ with the same lender (product switch) without going thorough full affordability (so won’t matter if you are part-time). 

Woolsery

Zerforax said:

Woolsery said:

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.

  Not convinced with our sellers as they seem they could be flaky.

Perhaps they're getting different messages. Legacy media is still optimistic, as one might expect, considering who controls it. Look around elsewhere and things are not so rosy.

nicknameless

Megaross said:

nicknameless said:

Megaross said:

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.

Thanks for missing the point totally lol.

They moved to part-time obviously.

Exactly, person B was a higher earner. Entirely not comparable, besides, how will he remortgage when he's part time.

And anyway, person A - why has he opted out of a pension if he was on par with person B?

Not comparable

The whole point was their situations aren't comparable.  I think you might be on a wind up.

Megaross

I'm just saying it seems like the situations where being mortgage free being a bad thing are fairly "out there"

Most people who want financial security in the form of being mortgage free aren't going to opt out of a pension. Both are significant things after all