Am I too young to be mortgage free?

mlz1413

If you intend to move i would leave a small mortgage, say £10k, so you can be seen as making regular mortgage payments. Rather than starting a new application in 2-5 years.

Definitely have some cash available, IE enough for a new car.

Consider if you want some longer holidays too, IE do you want 6 weeks in Australia? It means large financial spending and unpaid time from work... Can you still afford everything if your capital has been spent paying off the mortgage?

And well done, having the opportunity of MF in your 30s is a great position to be in

Jessy103

Be mortgage free! Not having the stress of owing anyone any money is amazing. I dont understand people who want to keep their low interest mortgage around like a pet! Then you can just use the money you were using to pay the mortgage to pay into your pension.

The reducing hours at work is a separate question/issue and should be thought about carefully. I have recently reduced my hours and although I have enough to pay my bills etc, I don't have the 'treat' money I used to and have to think carefully about buying things that i would have just bought before.

Good luck with what ever you choose to do!

subjecttocontract

The whole premise of paying off the mortgage & reducing working hours at 34 suggests to me a complete lack of ambition. At that age most people are at or near their prime in terms of health, fitness and earning potential. At that age one should be building up their wealth which is difficult to envisage by working less etc.

South_coast

I guess it depends what your ambitions are 🤷‍♀️?

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82169612#Comment_82169612

love to have enough savings to need to pay tax on it - I’d be more than happy to have that much money.
I assume you refuse to use all services provided by taxation? Or are you a bit hypocritical perhaps?

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82172241#Comment_82172241

money isn’t the only thing in life. As my father used to say, there are no pockets in shrouds

catclaires

https://forums.moneysavingexpert.com/discussion/comment/82172241#Comment_82172241

Well, it's only a complete lack of ambition if your sole ambition in life is tied to work - maybe the OP's ambition is to spend more time on a hobby? Or learn a new skill? There are so many possibilities!

saajan_12

Pay off mortgage and reducing working hours shouldn't be linked, they are two separate issues.

Re pay off mortgage: If you have enough savings that cover your mortgage balance, then effectively the return on those covers your mortgage interest. You could pay off a lump sum, or use the money in that account to pay off each month, with the savings balance dropping at the same rate the mortgage balance drops. It makes no odds to your financial position and whether you're comfortable enough to reduce hours .

Re reducing hours: This depends on

• whether you enjoy work and have work-linked ambitions to increase earnings in future (promotions etc may be harder if not full time).
• whether you expect to stay in a similar value house forever or are likely to upsize for family, move area, etc
• whether the reduced hours builds enough pension savings to live comfortably
• whether the reduced hours income gives enough to enjoy the rest of life, including bills, activities, travel, family (higher than the current as extra time not busy at work may end up increasing spending).

South_coast

https://forums.moneysavingexpert.com/discussion/comment/82172636#Comment_82172636

I have medication I need to use every day, which I have to pay for. I see a private dentist because there are no NHS ones available. I have no children, so they don't go to school. I don't use the library. I pay £640pa in car tax and drive on the same potholed roads as everyone else. So yes, I do struggle to see what of the £1400/month I pay in income tax and NI actually comes back to me, and try to minimise paying any on my savings as well. If the OP has built up enough in savings to be able to clear their mortgage in full at the age of 34, it suggests they are able to save enough for this to be a consideration

Rosa_Damascena

Another newbie that hasn't returned to the thread.

The question is such a no-brainer that it cements my suspicions.