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Mortgage free july 2024

Hi guys / girls. 1st time poster here. Im 35 and been saving like a mad man since i qualifed as an electrician 15 years ago.

Im finally in the postion to clear my 35 year term mortgage 30 years early in july.

 I also rent out my 1st property which i bought when i was 23.

I had £125,000 in vanguard shares portfolio which i cashed in last week.

Once ive paid my house off i will have £25,000 left in savings. 

My question is why do i feel nervous about parting with this money to pay the mortgage off even when i know it will make life a lot better?  

Am i doing the right thing? 

Cheers. Ben. 


Comments

  • It depends on your interest and mortgage rates. If your mortgage rate is lower than your investment return & savings interest rate then you are better leaving your money where it is and enjoy being mortgage neutral, knowing you can pay it off if you wanted. Index Fund Investments typically return 7% on average and with that amount in your account so young, your investments will really pay off.
    Mortgage start date Nov 2014  - £90,545 over 25 years
    Re-mortgage Oct 2017 - 78,295 over 23 years
    Re-mortgage Jan 2020 - 55,000 over 26 years @ 1.94%
    Current Mortgage Outstanding Middle December 2020 - £
    47893.35 - a reduction of £42,652 in just over 6 years!  


  • South_coast
    South_coast Posts: 5,932 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    Benk35 said:
    My question is why do i feel nervous about parting with this money to pay the mortgage off even when i know it will make life a lot better?  
    It's natural to have doubts at the last minute as it's a huge thing. You probably felt the same when you bought the house (I know I did!) But if this is what you've been working towards and you still think it's the right decision then just take a deep breath and go for it
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed

    Finally earning interest instead of paying it!!!
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