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Have you paid off your mortgage early?

(64 Posts)
alma123 Thu 16-Jan-14 21:39:10

How did it work out for you - was it worth it? I have been paying bits off here and there but I think it's making me a bit miserable. Instead of having a bit of fun with my money, I'm re-directing my spare cash at the mortgage and well... despite paying some off, it still feels like a big number remaining.

LadyBroker Wed 15-Mar-17 09:26:14

Usually it will tell you in the small print how much you can overpay annually on your mortgage.
It's usually around 10% per annum.
You can actally find grahs online to demonstrate how many years
if will knock off your mortgage.


starfishmummy Wed 14-Jan-15 10:16:36

We did. Strange grown up feeling!

twofalls Wed 14-Jan-15 10:11:39

oops, sorry realised this is a zombie thread!

twofalls Wed 14-Jan-15 10:11:20

We have been overpaying by £250 since we got the mortgage and an inheritence of £25,000 went on it last year. We now have 2 years left and I have to say the thought of it being paid off is great. Yes there are still bills etc to pay but whatever happens you have your home. We would have saved ourselves 12 years mortgage and £75,000 in interest according to the calcuator I have just looked at!!

However, we are both self employed and don't have pensions as everything has been going to our mortgage wo will probably remortgage to a much more flexible deal than we have now and buy a small flat to rent out as an investment for our retirement - the rent will cover the mortgage but there will obviously be tax and fees to pay but we think it will be ultimately worth it.

We haven't had expensive holidays as the children are still small and are just as happy with camping or caravans but we certainly haven't scrimped. In fact DH would have us scrimping and paid off already so its been a compromise.

foxdongle Wed 27-Aug-14 19:33:14

We paid ours off years ago, very early.
Then bought a house to rent out, so re-mortgaged for that, but the loan was small.
We are due to pay nearly half of that off next Jan when we're out of the fixed rate, using some savings. Then pay off any money left at the end of the month.
Then it will be paid off automatically about 2 years after. Quite a few years early.
It's quite doable if you have any spare left at the end of the month, I wouldn't want to forgo holidays and going out to do it though.

arna Wed 27-Aug-14 14:08:35

We are now living in our 4th house purchase having up sized each time with a corresponding larger mortgage. We have overpaid on our offset mortgage but have never extended the mortgage term and we are still on target to technically pay it off in 8 yr's time or less - hopefully before my 50th! I say technically since we probably wish to maintain our hefty credit line should we need it.

Didyouevah Tue 26-Aug-14 18:40:09

I agree - fascinating stuff.

atticusclaw Tue 26-Aug-14 17:21:24

This is a zombie thread but still an interesting one. We are trying desperately to pay ours off and once we do it we will have saved a fortune (large mortgage). Once we have paid it off we will be thousands better off every month. Overpaying is definitely the way to go.

Greengrow Sat 23-Aug-14 20:36:23

Yes, paid the first off at 33 and then could move to a much bigger house and on track to pay that off early too. It is definitely worth it if you can.

Egghead68 Sat 23-Aug-14 16:27:08

Took on my first mortgage late in life (41). Frantically overpaying to get mortgage-free by 50. This means no car or holidays, taking a lodger and working freelance as well as full-time. I think it will be totally worth it though. I'm now 4 years in and have it down from �143K to �87K so I'm almost on track unless interest rates rise drastically.

ml11j4b Wed 20-Aug-14 09:17:17

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Squeakygate Tue 28-Jan-14 19:13:00

We overpay as much as we can and any inheritances / monetary gifts have always gone straight into the mortgage jar. I hope we will pay a 20 year mortgage off in less than 12.
This will then let us pay a bit more into dc savings / pension pots & I'd like to take the dc abroad too.

chickydoo Mon 27-Jan-14 16:52:47

I thank God we did! Bills are high each month, kids cost a fortune, thank God we don't have a mortgage too.

littleredsquirrel Mon 27-Jan-14 14:22:22

We bought our house with a large mortgage of over £450,000. The interest we ought to have paid on the loan was £284,000. Through overpaying (lump sums and regular overpayments) we should be paid off very soon having paid only about 65,000 in interest.

ShadowOfTheDay Mon 27-Jan-14 13:08:01

Our house price was £100,000 roughly..... we have paid off the mortgage early...

Paying interest only over 25 years would have cost us around £110,000.... (at an average of 4%)

So our house would have cost £210,000

Paying interest only over 16 years = £63,000

So our house would have cost us £163,000.....

We actually paid less because we did overpayments each month so the interest came down each month...

Actual cost to us of our £100,000 house came to £147,000 - saving us approximately £63,000 for overpaying and paying off early...

Babyroobs Sun 26-Jan-14 21:50:18

We are trying to clear ours by overpaying in the next five years so that by the time the kids go to University ( we have 4 , all 2 school years apart eek !) we will have spare cash to help them hopefully.

littlemrssleepy Sun 26-Jan-14 21:42:42

We did - due to some good fortune with some shares. But we then ended up re-mortgaging so that we could buy an investment property outright. We could get a much better mortgage with a low LTV on our own property, compared to their higher rates and LTV we would have got if we had mortgaged the rental property itself. Does feel a bit crap that having paid the mortgage off we've now got one again, but the rental completely covers it and so technically (as long as the rental property is let) we are still mortgage free.

bonvivant Sun 26-Jan-14 21:26:16

I can't really get excited about increasing house prices because I know what that will mean for the younger generation. Don't get me started on the buy to let trend!

TalkinPeace Sun 26-Jan-14 21:11:06

I bought my house for £60k, then extended the mortgage by £100k when I did a mahoosive extension.
My house is currently "worth" £300k
but my earnings would never, ever, allow me to get a £300k mortgage

and I'm looking forward to being mortgage free in 8 months

bonvivant Sun 26-Jan-14 20:50:23

I don't agree bamboo. We could afford a bigger mortgage - nearly paid ours off and we both earn well. But I'm not going to take on another mortgage, have worked really hard to get in this position and now I want to relax and have a bit of fun. We don't want to continually be stretching ourselves, to get a bigger, better house all the time. Plus the bills get bigger too as the houses get bigger!

LadyKooKoo Sun 26-Jan-14 19:42:11

That is all very well bamboo but mortgage companies give people mortgages based on what they think they can afford, not what they actually can. I am paying almost three times what my mortgage payment is but the bank wouldn't give me a mortgage that was three times more. DH and I have buy to let properties and will be able to purchase more when the mortgage is cleared in ten years time. The revenue from them will be worth far more than buying an extremely expensive house now that I spend 25+ years paying off, just to sell when I retire to live off.

redgate Sun 26-Jan-14 19:41:19

I can only ever dream of living in a house 'only worth £200k' - and I am incredibly proud of how hard I am working to pay my much much smaller mortgage off early. It is relative, in terms of how much it means to you, not the numbers involved.

bamboostalks Sun 26-Jan-14 19:29:21

Well surely it depends on the actual size of the mortgage and the value of the house? I mean you can be congratulating yourself on being mortgage free but if that means your house is only worth £200k then perhaps you'd be better taking on a larger mortgage where the potential gains are considerably more. I would love to be mortgage free on a house worth a million but wouldn't be wetting my pants at £350k. I'd be thinkng that I could probably manage to pay more and have a house worth massively more to cash in for my retirement. It's all totally relative.

LadyKooKoo Sun 26-Jan-14 19:04:08

We are 1 year into a 32 year mortgage and based on the overpayments will be mortgage free in 10 years and will have saved over £100k in interest. I work PT at the moment and we have childcare costs so over the next couple of years should be able to increase the overpayments and may even clear it quicker than that. I love logging into the mortgage account and seeing it drop quickly! DH and I will both be early 40s once it is cleared and I am looking forward to being mortgage free and going on lots of amazing holidays with the DC and DH.

Mam23 Sun 26-Jan-14 18:28:37

Yes! Paid a 25 year momortgage off in 10 years. Was an offset so we could overpay as much as we wanted. It's amazing when you look at how many tens of thousands you save in interest doing it this way. That's my motivation. We now get to spend those thousands on our family rather than just 'empty' charges to the bank.

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