Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

If you are mortgage free, where does your income go?

267 replies

Presentxx · 06/09/2020 14:31

We will be in this position soon and I’m intrigued as to how others spend/utilise their income when the biggest debt has been cleared? Hope this isn’t too invasive, but its not something I find myself comfortable asking those closest to me.

OP posts:
Pumpkinnose · 06/09/2020 15:30

Savings (anticipated for private school fees but now thinking not down that route), working part time, may buy larger house. I worked incredibly hard so I don’t have to worry about financial hardship.

Judashascomeintosomemoney · 06/09/2020 15:34

We’ll be there in about a year. We will be using it to pay off debt a lot quicker, put two DDs through University and do things in the house that have needed doing for years but we put off (overpayed mortgage for a few years). DH would like to retire in about three years too so we won’t have long to achieve all we would like to.

CouldBeOuting · 06/09/2020 15:35

Paying DDs rent (doing an MA). Savings and having reduced working hours.

Alonetime · 06/09/2020 15:35

I massively reduced my hours at work and regard myself as semi-retired.

Same here. Paid it off at 38, replaced the double-glazing and then went part time. It means I don't suddenly have extra £100s every month, but that work is no longer the main way I spend my waking hours.

CuriousaboutSamphire · 06/09/2020 15:35

Pension. We put the same amount into our pension pot every month and I put most of whatever else I earn into other savings for new windows, holiday, Christmas, etc. Anything left from DHs salary gets added to that too. Whatever hasn't been earmarked at the end of the financial year goes into pensions.

Were mid and late 50s. Trying hard to make up for years of low paid jobs, us both going to university as adults and then spending every penny we had ever managed to save into buying the house.

barberousbarbara · 06/09/2020 15:37

I've paid more into savings. I treat myself to slightly more expensive treats, i.e. I bought Benefit mascara rather than Rimmel last time.

notalwaysalondoner · 06/09/2020 15:37

We’re a bit different to most on here as we bought shared ownership when DH was still studying and paid off that mortgage within 3 years as it was small (

notalwaysalondoner · 06/09/2020 15:38

So in summary - we’ve saved it to be able to buy a much better property or a second property.

RaraRachael · 06/09/2020 15:38

I've had no mortgage for 10 years. Spent a bit on putting kids through uni but now I just save what is left at the end of the month because there's nothing to spend it on atm. The house is all done and we've a decent car so would normally spend it on holidays. As I'm a teacher they still cost a fortune though. I have reduced my hours now as I don't need to work full time.

P0ndering · 06/09/2020 15:38

We are mortgage free sadly due to an inheritance from a parent. Our kids are still very young, I've not been back to work since youngest arrived. Although I hope to rectify that when the youngest starts full time next September. We lead a very comfortable life on just one (teachers) salary. Nothing fancy, but no need to worry, go on holidays as we like, mostly UK. Just don't need to think can we afford a takeaway etc. Which wouldn't be case on one teacher salary. I'm hoping when I do go back to work we can up our savings, which we don't really manage at the moment.

fellrunner85 · 06/09/2020 15:38

I worked incredibly hard so I don’t have to worry about financial hardship

Do you have any concept as to how that sounds?
Lots of people work incredibly hard but still have to worry about financial hardship.

My mum, for example, worked in a very demanding - yet very low paid - job while bringing up three children alone, after my dad left her with 3 children under the age of 5.
She worked every hour she could but was still so skint I remember having to go without school shoes. No holidays, no car, no eating out, only new clothes were for birthdays. And that situation was, and is, hardly out of the ordinary.

Working harder does not always equal more money. Or vice versa.

Alonetime · 06/09/2020 15:39

I did consider piling it in to pension pots, but thought, "why am I working so hard in a job I detest in order to retire early in 20 year? Why not "retire" now and enjoy it whilst I have my health?".

Zaphodsotherhead · 06/09/2020 15:39

I am only mortgage free because I managed to buy my house almost outright with an inheritance after years and years of renting and struggling financially.

I still struggle financially, I just don't have to budget for rent any more. Being mortgage free doesn't automatically mean you are loaded.

Londonmummy66 · 06/09/2020 15:39

School fees. 100% of my income

Twizbe · 06/09/2020 15:39

Savings mostly. I became a SAHM after our second was born and being mortgage free made that possible.

Before kids we spent money on holidays and trips away.

We are also about embark on renovation number 2 at our house. That will take up a big chunk of saving.

We were super lucky to inherit our house (well aside from the close relation who died obviously)

whoopthereit · 06/09/2020 15:40

@JalapenoDave is it that depressing though? We could downsize & be mortgage free or move out of London for similar size house & be mortgage free but I don't want to do that yet.
My inlaws aren't mortgage free yet, they have 50k outstanding but their home is worth about 2m.

pandora206 · 06/09/2020 15:41

When I paid mine off I cleared off my car loan, did a few home improvements, spent a little more on holidays etc. However, my main outgoing was to increase my pension contributions by the amount of my mortgage payments (which at the time was around £700 per month). This was on top of contributing to my defined benefit occupational pension, so was a large amount into my pension in total. Of course I was fortunate to receive tax relief on this which as a higher rate tax payer made a lot of sense. Now, after retiring I am so glad I went down this route rather than splashing out on a new car, major house renovations, expensive holidays etc. as I am retiring on the same amount as my take home pay. Plus I could have retired early but chose to stay on an extra year. All very good decisions, and I'm just starting to draw my state pension on top of my other income, so I am looking forward to a very comfortable retirement.

Enoughnowstop · 06/09/2020 15:43

I save the same amount houses in my area rent out for.

GoodbyePorpoiseSpit · 06/09/2020 15:43

This is a distant dream. Owe over 500,000 on the mortgage Shock

mrpumblechook · 06/09/2020 15:44

I don't think there will be much difference. If you pay the mortgage off over 20 to 25 years then it is a very small proportion of income at the end anyway.

papounet · 06/09/2020 15:45

School fees, vet bills and Waitrose.

yearinyearout · 06/09/2020 15:46

Savings/investments (stocks and shares isa, which took a bit of a battering with covid but recovering) and premium bonds.

Holidays (in normal times we have lots of city breaks, weekends away, couple of holidays abroad and couple of uk holidays a year. This year it's all UK cottage holidays.

Pandsbear · 06/09/2020 15:47

We were mortgage free for about 2 years. And then we decided we needed more room so spent the savings we had plus new remortgage on extension. Couple more years to go to clear that and then we will be into paying university living costs I imagine. (With what is currently mortgage payments.)

Elephantday82 · 06/09/2020 15:48

Food, bills, clothes. We’ve been mortgage free fir years but it was never more than about £300 a month anyway.

rwalker · 06/09/2020 15:48

Took ours out in mid 80's paid off few years ago it wasn't even £200 a month so whilst nice it didn't make a huge difference.