Only a few months to go - should I pay it off?

TiredDonna · 16 July 2018 at 7:15PM

Hi, I've been over-paying my mortgage by a lot. With interest rates so low I have done this rather than pay in to savings (it's a mortgage with no penalties for over-paying and I can draw down the over payment if needed, so I've treated this as my savings).

I am still throwing everything at my mortgage, and reckon I could be done by January. Am I right to pay it all off? Or is it best to just pay a nominal mortgage for some reason? Is there anything I need to consider? The only thing I can think of is at the moment I have "easy access" to my over payment of about £50k. However, I have no foreseeable need for such a sum any time soon.

Unicorn_cottage · 16 July 2018 at 10:58PM

What will you do with the money that you are using to make overpayments once you have paid off or paid of the majority of the mortgage?

I know a lot of people say it is best to invest rather than pay off a mortgage so you may want to investigate that option?

TiredDonna · 18 July 2018 at 10:09AM

I am trying my best not to think about what I will do with the extra cash! I won't believe it until I see it. But so far I'm thinking of going down to 0.8 at work and that'll still leave me with an extra £1k a month. For two years I'll probably build up some savings and buy a new car. Then I'll have a rethink on a long term plan. I'm thinking about working less and playing more rather than tying myself to a new mortgage. Personally, I don't really agree with buy-to-let either.

bexster1975 · 18 July 2018 at 11:29AM

Hi Donna

I'm with you on more play less work. I have paid my mortgage off and now do very little work (0.4) and run my own business, which doesn't feel like work!

I also agree re:BTL. controversially I believe it fuels the runaway house prices and at worst exploits people who cannot get on the housing ladder, partly due to people owning lots of properties!
Not everyone is likely to agree with that, that's fine.

You need enough money to live the way you want, not more. Trading your time for money always seemed an increasingly poor deal to me.

Good luck whatever you decide. I would save an emergency fund just in case as you never know what is around the corner but after that, go for it.

Bexster

TiredDonna · 18 July 2018 at 2:37PM

Strangely reassuring to hear that I'm not the only one with this outlook Bexster

Back to my original post, I guess that there's no reason I should keep a tiny balance on my mortgage rather than paying it off in full asap?

bexster1975 · 18 July 2018 at 4:50PM

I can only think that if you may want a further line of credit through your mortgage you may want to keep it open. It really depends.

I will say once you are MF and have a better work life balance, you won't look back.

I wish you all the best of luck

Bexster

daisy_1571 · 22 July 2018 at 2:48PM

Like bexster says, it might be easier to get an increase to an existing mortgage than to apply for a completely new one, how about leave it at a minimal amount from maybe November, save up whatever you feel is 'enough' and then clear it off? We paid ours off (best cheque we have ever written) without worrying about keeping a wee bit outstanding and also have never looked back. I work at my own business now and Mr daisy is having issues at work - not such a problem now we have no mortgage to service each month and he knows if it doesn't improve he can walk away. Takes such a weight off to be in this position rather than thinking but I NEED this job, and feel stuck in a bullying atmosphere.

Good luck with whatever you decide to do for your own circumstances

Daisy xx

bexster1975 · 22 July 2018 at 3:21PM

Mortgage free-ers are the enemy of the employer. Increasingly employers think staff have to put up with whatever !!!! they throw at them. Being MF gives you loads of options. Life's to short to work for !!!!!h0l3s

Bexster

Only a few months to go - should I pay it off?

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