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Original poster

Mortgage =debt ?

46 replies

Paranoidmarvin · 09/11/2020 20:01

Had a conversation with a friend the other day and she got me thinking. She doesn’t see her mortgage as a debt she just sees it as a fact of life. Something everyone has. As she could sell her house and the amount she owned would be gone.

I see it as a debt and hate seeing it on my online banking as it reminds me of how much we owe.

How do u see yours.

OP posts:
Tigger03 · 09/11/2020 20:05

A debt - were aggressively overpaying to try and get rid! (Namely because the family house we want will cost a bomb, so want as large a deposit as possible.....)

whatswithtodaytoday · 09/11/2020 20:06

Just a fact of life. It's preferable to renting and we'll have it for many years to come yet.

mindutopia · 09/11/2020 20:08

I see it as technically a debt (I mean, that’s what it is), but not in a negative sense. It’s more like an investment. I wouldn’t generally consider myself to be ‘in debt’ - no credit cards, no personal loans, no car finance, etc. It’s like paying rent to yourself, which feels a lot different than paying it to someone else.

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irregularegular · 09/11/2020 20:11

Well yes, it's a debt. But that doesn't mean it is a bad thing. Not many people are going to buy a house without one, are they?

The big difference between a mortgage and pretty much any other kind of debt is that you have used it to buy a house that is (in the long run at least) going up in value. Unless you are very unlucky, you can at some point sell your house, pay off your mortgage, and be better off than when you started. Not true for credit card debt, or a car loan.

So while it's obviously better to have the house with the mortgage paid off, as long as it is an affordable level you shouldn't be afraid of it.

Original poster
Paranoidmarvin · 09/11/2020 20:12

@mindutopia I have no credit card debt etc. All our cars are bought so no finance. I like the idea of thinking of it as an investment.

OP posts:
NatMoz · 09/11/2020 20:13

I don't have any unsecured debt (credit cards etc) but a mortgage is a secured debt, therefore a debt!

You're paying interest on what you've borrowed, if you don't pay it you enter your bank's debt collections team.

I just see it as a horrible but necessary noose around my neck.

grassgreenthisside · 09/11/2020 20:14

Depends on your stage of life.

The first 20 odd years it's a fact of life because the end is so far away.

The last 5 years it's a debt that you want gone as you're so close, and the freedom it affords once gone.

But overall no it's not a debt like personal debt, as your friend rightly said unless the house is a shit tip, it can always be repaid.

Lazysundayafternoons · 09/11/2020 20:15

Were just about to drawdown our first mortgage and see it as an investment.

I can pay rent for the next 30 years and have nothing at the end to show for it, or pay a mortgage (which is a little higher than the rent) and own a house at the end of the 30 years.

lachy · 09/11/2020 20:15

Like a PP we will be overpaying our mortgage by as much as we possibly can so we get rid of it as soon as we can.

Obviously it is a debt, but I don't consider it along the same lines as I would a credit card - its just an inevitable fact of life for the vast majority of people who chose to buy a home.

Littlemissweepy · 09/11/2020 20:15

It’s a debt, offset by an asset (assuming not in negative equity)

Lottle · 09/11/2020 20:28

I see mine as debt. I see the amount I owe on my student loan in the way your friend describes her mortgage though.

GiveMyHeadPeaceffs · 09/11/2020 20:30

It's a debt but I'm immensely glad and fortunate that it's my only debt. I'm currently saving as much as I can to get it paid off.

Tomatoandbasil · 09/11/2020 20:32

Just the alternative to paying rent so more of an investment than debt.

Arnoldthecat · 09/11/2020 20:33

I wouldn't worry about amount owing on a mortgage. The magical inflato will take care of it.

yellowcatss · 09/11/2020 20:37

its very different for any other debt as you have to pay for housing either way and its an asset you only really have a problem if your in negative equity and cant make the payments.

frumpety · 09/11/2020 20:43

It is no different to any other kind of debt, if you can afford to meet the terms of your agreement then it isn't a problem, if you can't then it is.

LookMoreCloselier · 09/11/2020 20:47

I see it as a debt, yes it's an investment but you end up paying a lot more than if you had been a cash buyer. We are overpaying by 150% to be done with it quicker. We are in a well paid but unstable industry so outright owning our house seems sensible. Few years to go all being well.

rainkeepsfallingdown · 09/11/2020 20:48

An unavoidable and manageable debt, but yes, still very much a debt.

museumum · 09/11/2020 20:53

I wouldn’t go round describing myself as “over £100k in debt” even though technically I am. It’s not really the same, especially if your LtV is good. I guess if you were in negative equity or even close then it would feel more like “a debt”.

museumum · 09/11/2020 20:56

I guess I see it more like a “hire purchase scheme” - the bank owns the house really, we pay an instalment each month and eventually we own the house.

chomalungma · 09/11/2020 20:58

If you add up all your assets and your debts, you should hopefully be in credit.

So it's a debt but it adds to your net worth.
Hopefully.

Indoctro · 09/11/2020 21:00

100% see it as debt

Sooner it's gone the better

righttothepoint · 09/11/2020 21:01

mines a long term, slow investment not a debt . as I could sell it and downsize and be quids in, so its an asset.

pincertoe · 09/11/2020 21:01

It is a debt but its also a fact of life. I'm with your friend. Its not like a credit card debt where you probably have nothing to show for it.

I don't massively worry about our mortgage although looking forward to being able to increase our payments to pay it off sooner.

GeorgiaGirl52 · 09/11/2020 21:12

I see a mortgage as like "rent-to-buy" where every month you own a little more of your property and in 20 years you will have paid for the last doorknob and it will be all yours.