60k - buy a motorhome or pay off some mortgage?

[WetBench]

I know it’s a lovely problem to have, but most people are aware that people coming into chunks of money do not usually do so through happy means, and most people would rather give the money back to not be in that position.

So I I have the opportunity to buy a motorhome for £60k, or pay off some of the mortgage and reduce it down from 60% to 50% and take out a loan for 25k to pay for the motorhome. We have been on several trial holidays hiring different models and have narrowed down the one we want and think we would use it for short holidays and longer 1/2weeks.

Although maybe that’s just crazy and we should pay off more mortgage or keep it for a rainy day, and that’s a stupid amount to spend on anything. We spent 2 years umming and ahing about buying a garden bench so this is way out of our usual comfort zone and price range. Our savings would be down to zero buying this.

But circumstances mean we want to get as much out of life as we can in the next few years and this seems to be the solution?

Mortgage every time for me but we had an offset one so big lumps made a huge difference in reducing monthly payments.

Saying that, a motorhome would be fab right now as I can't find a holiday cottage for love or money

The reduction in monthly payments wouldn’t mean we could save up and go on many more holidays hiring one, so no instant reward if that makes sense. Mortgage due to be paid off when we’re 60 I think.

Only buy the motorhome if you’ll use it enough. That’s a lot of money to have sitting on the drive for 11 months of the year

Ideally, you should have 6 months living expenses plus rainy day money.

Why buy a new motor home? Do they hold their value? What about second hand or leasing?

The two couples I've known who bought motorhomes found they didn't use them much.

Honestly if 60k is only 5% of your mortgage I'd focus on paying that off, it's massive

Oh sorry, misread its 10%

I'd buy a cheaper motorhome and use some of the money to reduce your mortgage. That's a lot of money to spend on one item.

Where would you keep the motor home? The fees for keeping it away from the home (which is recommended) would be high and add to your monthly outgoings.

If I 'only' had 60k there is no way I'd spend it all on one item.

30k on mortgage
20k on camper (or save to spend on hiring a camper)
10k savings.

Which camper are you wanting to buy ?

buy a motorhome, helps if you have somewhere to keep it....but make some memories.

My head says mortgage but my heart says motorhome

I'd try and buy a less expensive MOHO and split the money. If you want to use it all year round (we do) then get one that is "winterised" so it doesn't get frozen pipes. Also get one which will fit on your drive so you can take off for a night or two without having to collect from storage.
We love ours and use it lots.

The person who left you the money, what would they want you to do? Mortgage is the sensible option but motor home is the more fun option.

Personally, I’d go with the motor home but I know people who are away frequently with theirs. I’m the type of person that if I have any spare money, I’m buying a beach hut at the coast, rather than looking to get an investment property… so probably not the voice of reason here!

@Polmuggle £25k would reduce my mortgage from 60% to 50%

We are living with a ticking time bomb not knowing if life will last a few years or we’ll see retirement. If that happens that’s great, but if time bomb goes off remaining partner would sell house and downsize to keep current income manageable.

@TeapotCollection that’s it, I don’t know if I’m trying to escape reality or how much use would be worth while. So going away in it once a month and several day tips a month worth it for the cost etc.

@TawnyPipit I’m thinking we should keep 6months living expenses and get a short term loan for the remainder of the motorhome.

£60,000 is a lot to pay for holidays..........how much do you usually spend on holidays every year?
Don't forget that there are running costs on top of the purchases price, insurance/fuel / overnight parking or site fees.
I would reduce the mortgage to have more disposable income and spend it on take lots of weekend breaks and holidays.
I have friends who bought a campervan and didn't use it anywhere near as much as they expected and found that site fees could be very expensive in school holidays / peak times when they were able to go away.

There are sites where you can rent out your motor home so if you were willing to do that you could put that money towards the mortgage.

Is it just the 2 of you op? I can see the attraction of a swish motorhome but I think you do need to think long and hard about how much you will really use it! If you are only talking a few weeks a year then you will never see your moneys worth before it starts to get old. You also have to remember that you cant just park it up and leave it for months at a time without doing the proper maintainance, that can be very expensive unless you and dh really know what you are doing, if not you will have to pay someone.

I think in your position I would buy a much cheaper motorhome, pay off a bit of mortgage and put a bit aside for a couple of rather nice holidays.

I inherited £50k. I spent £20k on a caravan, which we use most weekends and got longer breaks on the holidays. It genuinely makes me happy and allows DH to decompress. I don’t regret spending the money in the slightest!

could you get a cheaper motorhome

Sorry cross posted with the last few posters saying motorhome!
I’m the heart saying motorhome, whereas DH is the head saying mortgage/contingency fund.
Would be kept in our parking space at home so easy to take out for day trips and would be intended to use year round/cold weather etc.

We are living with a ticking time bomb not knowing if life will last a few years or we’ll see retirement. If that happens that’s great, but if time bomb goes off remaining partner would sell house and downsize to keep current income manageable.

Is that just an expression or is one of you potentially life limited? If the latter then buy the motor home - and enjoy the life you have.

Despite buying a campervan myself last month, this year is a mad time to buy a motorhome - prices are at a premium due to limited foreign travel. Also bear in mind that motorhoming is a lifestyle choice NOT a way of having cheap holidays - the amount of money you have to shell out as well as the initial purchase fee puts paid to that. Even if you were to go away every week you will never get your money back, but as long as you’re happy with that then go for it!

Mortgage

You are asking in the wrong forum OP. Mumsnet users are obsessed with overpaying their mortgage which invariably is not the shrewdest investment. It all depends on you interest rates. Mortgage rates are very low. I have never overpaid my mortgage, instead I invest my money elsewhere enabling me to make my money work for me harder (and if interest rates were to go up I could take the money out and repay my mortgage).

If you are planning on buying a motorbike regardless you are probably better off paying for that rather than your mortgage and then get a loan. That is madness!

Sorry motorhome! Not motorbike