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(23 Posts)
spiderbabymum Mon 04-Jul-11 23:11:04

Has anyone here paid off their mortgage in say 10 years .

How was it .?

How does it feel now ?

Did you have to live in a less desirable house / area in order to do it . ( compared to what you could have bought )

We have found a lovely " Dream "house . but the prospect of a BIG , 25 year mortgage is terrifying me .

We are both nearly 40 FGS

My partner has a " professional " job so banks still willing to lend us ....TOO much as far as im concerned .

One young child . I work PT ..But I have no permanent job .

So what Im considering is basically buy a decent family home , semi D , starter- end of the market ...and basically put every spare penny we can into paying it off ....and still manage to have a better lifestyle , holiday etc ...than if we bought our ""Dream "" house .

I know what u will say ......

Gonzo33 Tue 05-Jul-11 04:53:25

If this is going to be your last home then buy your "Dream Home". If it is a stepping stone buy the safe option. Personally if I knew my job was safe (or partners) and we could afford it I would go for the dream. I am quite lucky though, and only have a mortgage on 33% of my current home, so when we come to buy the "dream" we will only need a 50% ltv and will pay a lump sum off of the mortgage when hubby retires from serving the crown.

We are going to try and move to Canada three years after hubby finishes his current employ too, but am still going to buy the dream just in case we are not accepted.

spiderbabymum Tue 05-Jul-11 08:13:38

Gonzo I could hug you .

nikos Tue 05-Jul-11 11:15:53

We are older than you and thinking of doing the same-much bigger mortgage for dream house when we could pay off our current mortgage. The way we look at it is that it is a pension pot. The house will be far too big for us to live in on our own when the kids are grown up. We will downsize and release equity and will get a much better return than if we had put it into a pension. We have lived through 2 property crashes and these things go in cycles but the pattern is still for house prices to double over 10 years.
Go for the dream!!

tyler80 Tue 05-Jul-11 11:43:25

If the choice is between somewhere ok but being mortgage free much earlier and someone great but paying the mortgage until retirement I'd in with the former.

Zeeky Tue 05-Jul-11 13:37:35

We're about to upsize & saddle ourselves with a big mortgage again when only got about 25% left to pay off current mortgage. But it will be our "dream" home where we stay until kids grown up. Over the last few years we have been putting every bonus & spare money to paying off chunks of the mortgage so that we could one day be in the position of affording a much bigger house. I say go for it otherwise you will never get your dream home. It's not like you're 50 & getting a new big mortgage!

spiderbabymum Tue 05-Jul-11 13:57:51

Thanks guys . that been reassuring . My main worry is really the proportion of Interest that we will need to pay back over the 25 year term . Its shocking . It would be a lot better im sure if we had a larger deposit . But we dont . We hope to basically tough it out for 2 years ( Fixed rate ) and then re negotiate better terms .

And hey you never know 2 years time our flat might have sold .( Hence the small deposit . )

noddyholder Tue 05-Jul-11 14:00:25

I think this cycle could be the first where they don't double in 10 years because if you calculate wage inflation and multiples that scenario is now impossible to sustain. Be careful all the talk of dream houses is very seductive but a dream life is better than a dream house! We are mortgage free and it is bliss

nikos Tue 05-Jul-11 16:23:37

Are you in a really good house now though noddy? With interest rates so low, and even if they go up it will be very gradual, it will still be a good return. Better than just in savings. I'm really interested in what others think

SparklePrincess Tue 05-Jul-11 16:28:41

I have been mortgage free for years. Im now moving area & about to take out a 100k mortgage with my new partner. (Who doesn't have a massive income) The plan is that if possible we will fix the rate or get a low rate for a few years so we can have a child together, then in a few years time I will find work so we can pay it off sooner. Cant say I relish the idea. It terrifies me! What if dp loses his job? But the quality of life & the fact we'll all be together makes it all worth the risk. Depends on how much of a difference it will make to your lifestyle. Try not to think about the interest! smile

TheSecondComing Tue 05-Jul-11 16:31:50

Message withdrawn at poster's request.

noddyholder Tue 05-Jul-11 16:34:12

I have just sold my current house I renovate for a living and have lived in this one. But my next buy will be a lovely house so I am very lucky but I don't think the housing market can sustain which is why I am living in teh ones I do atm so that if it goes to pot which I think it will we can stay put

SparklePrincess Tue 05-Jul-11 16:45:19

It is going to pot. Im in East Sussex & I can expect to get less than I paid for my house less than 3 years ago, despite making some improvements. It seems like London is the only place where property is holding it value.

My ex worked constantly to repay the tiny 27k mortgage we had. There was no family life, no holidays etc. Over half his wage went into this silly 10 year mortgage & £500 in overpayments every month.

On paper we should of been enjoying fabulous holidays twice a year driving decent cars, going out for meals, taking the kids out on treats etc etc, but it couldn't of been further from the reality of it.

Since we split, despite having less than half the income I was used to I am able to buy things if I want to, go out & about with the kids & do stuff. So im actually far better off than when I was with him.

Its all about getting the balance right.

Whorulestheroost Tue 05-Jul-11 17:55:33

I agree with nikos we have a large mortgage and will be 60 by the time it's Paid off but I see it as part of our pension. We will not need a big house like this once the kids are older and will be able to bank at least 150k towards our pension. Whilst life is for living I also think you need to plan ahead. I love my house, I used to drive past it with starry eyes and think "whoever lives there is so lucky"! And then it came on the market! We may have less in the bank at the end of the month but we still manage ok we just have to be a bit more careful grin

confusedperson Tue 05-Jul-11 18:06:23

I would go for a house which would give you a comfortable living for at least 10 years and so that you don't feel miserable.

emmspemms Tue 05-Jul-11 18:29:09

I've been stressing over this all day , glad I'm not alone.
Do we sell our easy to run ,low mortgage house (this will be payed off in 8 years)
and buy a big old ( needs a bit of doing up ) farm house with 10 acres and have a huge mortgage for 15 years ( when I will be 65 )
by which time the children will be in their 20s , can sell big house , give them a deposit for their own places and go on a round the world cruise...
Sounds good ?
If not now , when ? That's what I keep thinking.

SparklePrincess Tue 05-Jul-11 18:33:38

Sounds a bit much to take on that one if im honest emmspemms. Doesnt sound like there's much margin for error there, unless you dont mind renting out rooms to lodgers or students if you run into trouble.

noddyholder Tue 05-Jul-11 18:37:06

I don't think you can plan that far ahead though with the economy and changes to pensions and retirement ages etc plus factoring in house prices and low interest rates. Property is not considered the good pension it once was as the markets are too volatile. I have had recent advice on this and more and more financial advisors are advising people have other plans. Who knows if you will be well enough for a cruise or if your kids will want the money if there is any!I am sure they would prefer you lived now

emmspemms Tue 05-Jul-11 19:52:54

Thanks sparkle and noddy,
The plan is to do B & B , and keep healthy ! It's also my old family home ( dad lives there now and wants to downsize ) but it's certainly not an easy decision

spiderbabymum Tue 05-Jul-11 21:34:59

Emmspemms .. The farm idea sounds wonderfil to me .

SparklePrincess Tue 05-Jul-11 21:35:55

Agreed. smile

Indigojohn Tue 05-Jul-11 22:09:03

Emms, we have a place a bit like you describe. We offer livery and rent out a flat . Pays nicely for itself and a bit over for wine! Go for it! grin

spiderbabymum Tue 05-Jul-11 23:42:37

Yeah go for it Emmspemms .

Wee business idea....aim for the child friendly market . Some out door toys , some ikea chairs etc ...... Its an untapped market ....acc to my pals with twins ...who did a fab farmstay aimed at toddlers .

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