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Original poster

If you've paid off your mortgage...

46 replies

MrsJBaptiste · 16/04/2019 20:38

...what did you spend the mortgage money on when you didn't have a mortgage to pay?

We've just worked out that we will be mortgage free by Christmas due to having a very small mortgage, overpaying and recently receiving a small inheritance.

We don't want the money we will now be saving to be used up in day to day living and want to do something with it but what? The interest rate for savers is rubbish unless anyone knows of an account which has a half decent rate?

OP posts:
shiningstar2 · 16/04/2019 22:26

Our mortgage finished just as we were about to retire so finished just as we had less income. We have maintained the level of spending we had when working because of having no mortgage.

Original poster
MrsJBaptiste · 16/04/2019 22:31

Babyroobs that's what we're trying to avoid (sorry!) as it's so easy to get into the habit of spending 'extra' money you get.

I think saving is the best bet to start and we can see where to go from there. It will certainly be nice to have a lump in savings in case of a rainy day. Sorry about your DH's job situation Iggity

OP posts:
faffymcfaffer · 17/04/2019 06:54

We are saving lots of it for retirement (in pensions/long term investments) and we do spend a lot on holidays.

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Doyouthinktheysaurus · 17/04/2019 16:22

It just goes in to savings accounts so no different really. Ds1 couldn't see the point as we used savings to clear it and are now building them up but mentally, it's huge to not owe anyone anything.

Lolly49 · 17/04/2019 16:31

Paid and still paying for 2 dc to go to university so they don’t have to.

RomanyQueen1 · 17/04/2019 16:34

Tbh, there's not much difference if it's a small mortgage and you aren't paying much.
Ours goes into savings for dd future, or the garden, or house maintenance, the odd holiday. All the things we didn't have when we paid a mortgage.

BMW6 · 17/04/2019 16:46

We paid ours off last October. I've been retired for years, and DH has dropped working to only 3 days pw.
We are saving around £700pm with a view to moving to a bungalow in a nicer part of England in the future, as our house is worth only £175k at the moment.

BrokenWing · 17/04/2019 16:49

we maxed out in my workplace share schemes investing £500 a month. We get them as either B2G1F, or 20% discount. Can't sell for 3 years, but if I keep for 5 I don't need to pay tax of ni. They should hopefully help get ds through further education or for our retirement.

2018SoFarSoGreat · 17/04/2019 16:52

ours is all going into retirement savings, post tax money so will get the most bang for our buck there. It is tempting to spend some of it - we'd feel rich for a minute! - but our mortgage was high so for each year;s payments we save we can fund two thirds of a year of retirement. That's the plan. We're only at year 2, but retirement is around the corner so need to keep it up.

MySecondBestBroomstick · 17/04/2019 17:03

Still paying ours. Our goal is to pay it off by the time our eldest starts university. Then the mortgage money will go towards supporting them there.

Sproink · 17/04/2019 17:38

We are going no hurry to pay ours off as the mortgage rate is less then we are earning on our savings and has been for several years now. Any spare money gets saved.

Sproink · 17/04/2019 17:39

"We are in no hurry"

Jojoanna · 17/04/2019 17:43

We paid ours off then my DH retired,

butteryellow · 17/04/2019 17:51

Ours goes into premium bonds (! - I know, but, interest rates are terrible atm, we don't want it permanently locked away in a pension as we're too young, and I like the idea that I might win a million without buying a lottery ticket!)

We're planning to retire early - or at least go undemanding part-time once we have a little bit more of a nest egg.

sewingismyhobby · 17/04/2019 17:51

If only! We paid off the mortgage in our fifties so briefly had a good income to spend on lovely holidays etc. but then DH got very sick and we both gave up our jobs so now living on about a fifth of what we had and trying to budget month to month and wondering how long our 13 yr old car will last for. (Sold his car 3 years ago). His life insurance went with the job so neither of us is insured now.
Because we have no housing costs, on paper we look ok and don't qualify for any govt. support.

I strongly urge you to put aside considerable savings for a rainy day....

ProfYaffle · 17/04/2019 17:56

It enabled me to be a sahm for the whole of the dc Primary School years. Also managed to save and bought a small flat to rent out. Plan is to sell it when dc are older to help them out with house deposits.

I'm now back at work we're re-building the savings pot, hope to have a bit holiday next year (though we've been saying that for years!)

AngelsWithSilverWings · 17/04/2019 17:58

We have just paid our's off so we will be concentrating on saving for our retirement and also making sure we have enough to cover the kid's university living costs. We've got 5 years to prepare for Uni and 15 years to boost our pension fund.

VanGoghsDog · 17/04/2019 17:59

I've not had a mortgage for a while now.

I save about £1k pm and I put 43% of my salary into my pension. That's the amount that keeps me under the 40% tax band.

I then also take £2k pa tax free dividends from my own Ltd company which I run in my 'spare' time. Anything else earned there goes in the SIPP.

My aim is to get to £400k in savings and pension combined. I am 50.

Coffeebean76 · 17/04/2019 18:50

Love these stories ! Only £180,000 to go ...... Sad

Knockout · 17/04/2019 18:55

It's enabled me to be a sahm. We have pretty healthy savings so now we're building up savings for the dc to use towards uni/ house deposits.

blue25 · 17/04/2019 19:00

Invest in a S&S ISA

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