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  • FIRST POST
    • MF2015
    • By MF2015 16th Apr 18, 2:01 PM
    • 249Posts
    • 77Thanks
    MF2015
    Help us decide...
    • #1
    • 16th Apr 18, 2:01 PM
    Help us decide... 16th Apr 18 at 2:01 PM
    Ok, so I'm not sure I'm going to get a balanced view on this one but should we over pay or live in the moment a little, please help us decide.

    15 years or so back I was in a fortunate position to become mortgage free in my mid 20's and took the opportunity to give up work and go back to university. It wasn't a big house but it was paid for.

    After leaving uni I got a better, nicer house, and decided to make 2015 my new mortgage free date.

    With one thing and another we relocated and bought a bigger house in a much more expensive part of the country but kept the old house.

    We still managed to effectively pay off the mortgage by 2015 by accumulating equity in the new house after having two extensions built and sold the old house last year.

    Roll on to 2018 and we are now in a house we can see ourselves in for the next 15-20 years, or as long as we stay in this part of the country.

    We currently have over 50% equity in our house, more than enough to move back to where our parents and roots are mortgage free very comfortably. That leaves us with a bit of a dilemma.

    Should we use some of the money we have in the house to live a little or should we keep our foot on the gas and get the house paid off as soon as possible.

    I pay a large amount into my pension, enough to allow me to comfortably retire at 55. If we pay down the mortgage we should be able to clear that by 55 as well.

    The thing I'm struggling with is we have a 6 year old and as a child we always had a camper van. We had some great holidays and weekends away and 6 or so is the magical age for this.

    If we took a lump extra on the mortgage up to 60% LTV it would allow is to buy a new camper that we could use as one of our daily drivers for the next 10 years but would mean that we wouldn't clear the mortgage in 15 years, maybe 20 or so.

    Do we live for the moment a little and make the most of our time on this earth, no one knows for sure how long any of us are here. We will need to change the second car soon and this will fill that roll as well.

    Please help!

Page 1
    • Tropically
    • By Tropically 16th Apr 18, 3:50 PM
    • 237 Posts
    • 699 Thanks
    Tropically
    • #2
    • 16th Apr 18, 3:50 PM
    • #2
    • 16th Apr 18, 3:50 PM
    So you are in two minds? One being staying in the house for 15-20 years, the other being moving back to your parents' area?

    You could post a SOA or a list of assets so we can see what 'a large amount into pension' and what 'living a little' versus 'foot on the gas' looks like.

    If you are good at saving, why take on extra debt to buy a camper van, why not use savings?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • edinburgher
    • By edinburgher 16th Apr 18, 3:56 PM
    • 11,062 Posts
    • 59,341 Thanks
    edinburgher
    • #3
    • 16th Apr 18, 3:56 PM
    • #3
    • 16th Apr 18, 3:56 PM
    If you are good at saving, why take on extra debt to buy a camper van, why not use savings?
    Originally posted by Tropically
    And why does OP need to release equity to buy a new (second) car? It's not as if cars wearing out should be a surprise for a good saver...

    Reading between the lines, I think OP has gone a bit OTT with overpayments etc. and is looking for "permission" to slack off a bit

    Their capital is perhaps misaligned with their life goals.
    • MF2015
    • By MF2015 16th Apr 18, 4:13 PM
    • 249 Posts
    • 77 Thanks
    MF2015
    • #4
    • 16th Apr 18, 4:13 PM
    • #4
    • 16th Apr 18, 4:13 PM
    Maybe a little bit more info would help. Our house is valued at + 500k and we owe about 240K. We have a joint income of about 85-90k depending on overtime.

    I pay into my pension around £1100-1200 per month with my employers contribution, my wife has a good pension too.

    Our savings have gone into paying for the two extensions so we didn't have to borrow so much.

    We could easily move back to where our family are from mortgage free now, but come 55 we should have at today's prices a +500K house paid off and a very good pension each to allow us to retire at 55, if we want to, we may not. I only work 10 x 12 hour days every month as it is.

    What I'm trying to say is the thought of a 300k mortgage scares the c%rap out of me if we were to take some capital out for a camper van.

    But the camper van would cover 2 rolls, my commuting vehicle to work, and holidays/weekends away for the next 10 years. We would save on holidays, have a very slowly depreciating vehicle, geez, I've wasted enough on depreciation over the years but have an 80 mile round trip to work so need a reliable vehicle.

    Who knows what is around the corner, we are financially ok and I'd hate to get to 55 having saved like mad only for something to happen and not enjoy our later years. Recently we have had eye openers of people our age passing and it makes you think a bit more about living for the moment.

    • MF2015
    • By MF2015 16th Apr 18, 4:18 PM
    • 249 Posts
    • 77 Thanks
    MF2015
    • #5
    • 16th Apr 18, 4:18 PM
    • #5
    • 16th Apr 18, 4:18 PM
    And why does OP need to release equity to buy a new (second) car? It's not as if cars wearing out should be a surprise for a good saver...

    Reading between the lines, I think OP has gone a bit OTT with overpayments etc. and is looking for "permission" to slack off a bit

    Their capital is perhaps misaligned with their life goals.
    Originally posted by edinburgher
    We have two cars now, mine and the wife's. One on HP, the wife's small city car, due to the deal we got taking it out not making sense to buy with cash, and the motorway car bought for +20k cash.

    • Tropically
    • By Tropically 16th Apr 18, 7:06 PM
    • 237 Posts
    • 699 Thanks
    Tropically
    • #6
    • 16th Apr 18, 7:06 PM
    • #6
    • 16th Apr 18, 7:06 PM
    It sounds like a personal decision then, between moving home and staying where you are.

    As for the other decision, I wouldn't put a campervan on the mortgage, but I would buy one with savings.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • MF2015
    • By MF2015 16th Apr 18, 8:21 PM
    • 249 Posts
    • 77 Thanks
    MF2015
    • #7
    • 16th Apr 18, 8:21 PM
    • #7
    • 16th Apr 18, 8:21 PM
    It sounds like a personal decision then, between moving home and staying where you are.

    As for the other decision, I wouldn't put a campervan on the mortgage, but I would buy one with savings.
    Originally posted by Tropically
    We are not looking to move, we are in the house for the next 10-15 years.

    What Iím debating is using some of the capital to buy a camper that will double as a car and allow us to have cheaper holidays more often.

    The way I see it is I can either over pay the mortgage, pay for holidays aboard and save for a car for the replacement in a couple of years or release some of the equity, fix on a 10 year deal for next to peanuts interest and overpay the mortgage. The problem with saving up for a camper is it will take so long to save for it Iíll be missing the best years of my sonís childhood when heíll get the most out of it. I used to love falling asleep in the back and opening the curtains in a completely different place, the excitement was fantastic. Outdoor time that sadly a lot of kids just spend wasting in front of a screen.

    • MF2015
    • By MF2015 16th Apr 18, 8:46 PM
    • 249 Posts
    • 77 Thanks
    MF2015
    • #8
    • 16th Apr 18, 8:46 PM
    • #8
    • 16th Apr 18, 8:46 PM
    I suppose the other way to look at is if we had used our savings to buy a car/camper van then decided we wanted to extend the house would you use some of the capital to build it and increase the mortgage?

    After all it is the same outcome, just this way we have a much better LTV hence cheaper interest rate.

    • beanielou
    • By beanielou 16th Apr 18, 9:07 PM
    • 52,709 Posts
    • 207,047 Thanks
    beanielou
    • #9
    • 16th Apr 18, 9:07 PM
    • #9
    • 16th Apr 18, 9:07 PM
    It sounds like you have made up your mind.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • MF2015
    • By MF2015 16th Apr 18, 9:25 PM
    • 249 Posts
    • 77 Thanks
    MF2015
    It sounds like you have made up your mind.
    Originally posted by beanielou
    Yep, sell up and buy a houseboat it is!

    • beanielou
    • By beanielou 16th Apr 18, 9:30 PM
    • 52,709 Posts
    • 207,047 Thanks
    beanielou
    Yep, sell up and buy a houseboat it is!
    Originally posted by MF2015
    If that's what floats your boat.........
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • pink_pirlie
    • By pink_pirlie 16th Apr 18, 10:10 PM
    • 145 Posts
    • 94 Thanks
    pink_pirlie
    Buy the camper. You sound like you have worked hard and sacrificed a lot to get where you are now, give yourself permission to have a little fun.
    In my mind, there is little point getting to 55 and all you can show for the last 15 years is bricks and mortar.
    Experiences are priceless, especially with your little one.

    You earn quite a lot and must be relatively comfortable financially, so can!!!8217;t imagine it would take too long to save up for the camper or begin over paying your mortgage again once you have the camper.

    All your posts suggest you want to do it, but are looking for permission.

    What does your family think?
    • MF2015
    • By MF2015 17th Apr 18, 7:25 AM
    • 249 Posts
    • 77 Thanks
    MF2015
    Buy the camper. You sound like you have worked hard and sacrificed a lot to get where you are now, give yourself permission to have a little fun.
    In my mind, there is little point getting to 55 and all you can show for the last 15 years is bricks and mortar.
    Experiences are priceless, especially with your little one.

    You earn quite a lot and must be relatively comfortable financially, so can!!!8217;t imagine it would take too long to save up for the camper or begin over paying your mortgage again once you have the camper.

    All your posts suggest you want to do it, but are looking for permission.

    What does your family think?
    Originally posted by pink_pirlie
    Thanks for the reply. My wife is happy to go with the camper, but is worried by the bigger mortgage total.

    My student loan will be finished this month so that should give us an extra £220 to +£450 each month, that will more than cover the extra mortgage payments.

    It's just a psychological barrier taking money out of the mortgage pot rather than putting it in even if the aim would be to see it as a cheap means of financing the van and paying it off in over
    payments ASAP.

    I'm going to look at loan options to fund it, that will force me to overpay it early but the payments will obviously be more expensive.

    • alan_d
    • By alan_d 17th Apr 18, 9:59 AM
    • 15 Posts
    • 15 Thanks
    alan_d
    From my experience hiring camper vans and motor homes in the past, they are too big, cumbersome and noisy to live with as a daily driver. Also, compared with a car, they are thirsty, don't fit into most car parks and handle like a cow on roller-skates.
    I think you'd find that gets tedious very quickly. Also, when used on holiday, they are a pain to have to pack-up everything each time you want to go shopping or on a trip.
    To me, a far better (and cheaper) solution to comfortable camping is a caravan - about a third your £60k budget of £20k will buy a very nice one - which can be left setup on site and has all the mod-cons of a campervan - and usually more space.
    And it leaves you to choose a 'normal' car for day-to-day use, just sized with towing in mind.
    Also, if you don't have the space to store it, there are plenty of secure storage facilities around for a modest fee.
    • MF2015
    • By MF2015 17th Apr 18, 10:39 AM
    • 249 Posts
    • 77 Thanks
    MF2015
    From my experience hiring camper vans and motor homes in the past, they are too big, cumbersome and noisy to live with as a daily driver. Also, compared with a car, they are thirsty, don't fit into most car parks and handle like a cow on roller-skates.
    I think you'd find that gets tedious very quickly. Also, when used on holiday, they are a pain to have to pack-up everything each time you want to go shopping or on a trip.
    To me, a far better (and cheaper) solution to comfortable camping is a caravan - about a third your £60k budget of £20k will buy a very nice one - which can be left setup on site and has all the mod-cons of a campervan - and usually more space.
    And it leaves you to choose a 'normal' car for day-to-day use, just sized with towing in mind.
    Also, if you don't have the space to store it, there are plenty of secure storage facilities around for a modest fee.
    Originally posted by alan_d
    Thanks Alan but the size we are looking at is a Mercedes Marco Polo, it's based on a V class, the same size as a VW Transporter.

    Size isn't an issue, it's the same length as my current car, it's as quiet as a car and drives like a car and it will fit under barriers into multi story car parks.

    We have had campers for the past 30 years in the family, VW's, and love the freedom. You can pack up and go and be off to somewhere new in half an hour, you can't do that with a tin tent and your restricted to going back to pick up the shed if you want to move around to different places.

    • MF2015
    • By MF2015 18th Apr 18, 5:49 AM
    • 249 Posts
    • 77 Thanks
    MF2015
    Decision made!

    • shangaijimmy
    • By shangaijimmy 18th Apr 18, 7:45 AM
    • 2,592 Posts
    • 12,544 Thanks
    shangaijimmy
    Exciting times ahead!
    MFW: Turning June 2036 into March 2023... 37//120 Payments Challenge, Diary Reduction £39,897.62
    Aug 2009: £163,051 // Current: £96,102.38 // Avg Daily Interest £4.32
    MFiT-T4 #8 - 64.95% of £41,000
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