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Paying off the mortgage

(30 Posts)

Has anyone paid off their mortgage early? Ours is a 30 year term, taken out last year, and we've worked out that with some serious hard work we could pay it off in 7 years. Everyone I mention this to in real life (well, two friends and my mother-I don't talk finances with that many people!) looks at me like I'm mental.

We're not mental are we? We'll save over £80k in interest and be debt free before 40. It'll be hard work for the next 6 years but worth it-right?! I keep thinking we must be missing something massive or why wouldn't everyone overpay whatever they could...especially while savings rates are so low...right?

BackforGood Sun 03-Feb-13 17:35:26

I can't understand why you would take out a mortgage over 30 years if it is really realistic to pay it off in 7, but that aside, yes, I've always kept mortgage payments high when the rates are low. When I've had a deal where you can't overpay, then I just have a standing order into a savings account and then pay off a lump sum when we come out of the deal. The figures are incredible of how much you can save with even relatively small overpayments. We're now within sight of the end of our mortgage, and it's a lovely feeling. Once your mortgage is gone it gives you so many more choices. smile

As I said, because we wanted to have a monthly repayment that was low enough for us to cover with one salary in case one of us lost our jobs; while we are both working we can afford to pay more but we don't want to bank on that always being the case.

timetopost Sun 03-Feb-13 19:50:06

We paid ours off after 10 years (had a 25 year mortgage). Because of the time we bought our house, the mortgage really wasn't that big. The main reason for the early pay off was that we had taken out an endowment mortgage and we didn't think it would pay it off at the end of the terms. We were quite lucky in terms of doing share save schemes through work, that did well and allowed us to pay off regular chunks of the mortgage. We kept our cars for longer than most people do, which saved us lots of money that could be paid towards the mortgage.

Paying the mortgage off early was a bigger thing for my DH than me, but now I'm so glad we did it. We've had a few redundancy scares at work, and it means we don't have the same worry/panic over our jobs knowing the mortgage is paid.

The only downside that I can think of is that it's put us off moving, having paid off one mortgage, we are reluctant to have another.

I don't know why, but I'm a bit embarrassed of us having paid it off, I'd never want to tell friends.

manyhands Sun 03-Feb-13 21:53:26

You could reduce the term and not face early repayment charges.

notcitrus Sun 03-Feb-13 22:00:54

yes, reducing the term might also help, now that you've paid a good deal off.
Just reducing our first mortgage from 20 years to 18 meant huge savings overall for about an extra £15 a month. Worth calculating.

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