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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Work hard now to pay off your mortgage by 30, and retire by 40

473 replies

Ieattoomuchsugar · 09/01/2022 07:38

And to buy a house at 19/20 whatever age

Maybe exaggerating with the ages a bit but these are examples I've seen.

People who've gone without holidays, new clothes etc, lived with the bare minimum and worked endless overtime for years in order to achieve the above.

Has anybody actually done this or in the process of doing it?

I do see the appeal but I personally wouldn't want/wouldn't have wanted to spend my 20s and 30s living that way. I do think life is to be enjoyed, I of course want to save but I am not prepared to go without things I enjoy for such a long time. I think it's better to strike a balance, and I'd rather enjoy life now just as much as when I am 50/60.

OP posts:

Sadik · 09/01/2022 08:18

@Toadsinholes

Those of you who have nearly or paid it off before 40, can I ask how?! Is your house very cheap or do you earn loads, or have inherited some? We have a very average house (200k mortgage) & earn average salaries (60k combined) - there is no way we could ever pay that off early! Surely it’s out of reach for ‘normal’ people?

I suspect people who talk about having done this are older? I'm 52, bought first house in late 20s as a do-er-upper for £60k, sold & repeated by which time we had no mortgage. I can't see that working as an option for people now. We did also have a lodger almost all of that time - although we didn't charge much rent as it was always friends needing a place to stay for a few months it meant we were always splitting bills. TBF it's not really the same in that none of it was really planned out, we just liked having a big project! But it ended up being very fortunate when we split many years later because it meant we were both able to end up with a place to live.

Sadik · 09/01/2022 08:19

I should also say I have no plans to retire, got my own business and fully intend to be getting underfoot there until I'm unable to do so.

Waxonwaxoff0 · 09/01/2022 08:22

I agree. I think there's a balance to be had. I'd rather enjoy life while I'm younger because I don't know what my health will be like in the future. I'm not going to be able to retire early either way because I don't earn enough to save that much.

11inch · 09/01/2022 08:22

@UpDownRound
I had similar experience. Parents on good income that choose to prioritise mortgage/ investment over spending money on their children. I genuinely thought we were much poorer than we were growing up.

stingofthebutterfly · 09/01/2022 08:23

Well, most people struggle to save enough to even start a mortgage by 30, so whilst it would be lovely to have it paid off by then, it's completely impossible for all but higher earners. Retiring by 40 would be boring as hell, and again, impossible for most.

SylviaTrench · 09/01/2022 08:23

Based on past experience with frugal people I wouldn't choose to be friends with someone who lived like that.

UserBot989 · 09/01/2022 08:25

Who would buy a house at 19 though? I think realistically, 27 or 28 would be young to buy a house and then even high earners would be lucky to have it paid off by 55.

butterfly990 · 09/01/2022 08:27

www.bbc.co.uk/programmes/b006sh31
Would you sacrifice 2 years? Most of the couples in this show paid off @ 60% within the 2 years. It did take a toll of their relationships though.

UserBot989 · 09/01/2022 08:30

If I were single in my 20s with a good job though perhaps if I had my time again I might live in a caravan for 10 years, save every penny. But I don't know, 10 years in a tiny house, or 10 years in a caravan, it might not be easy. It's eaaaaasy to type it!

I do think there are ways around the hamster wheel of job, mortgage, house so far away from work that you require expensive car wheel though.

ufucoffee · 09/01/2022 08:31

@silentpool

While it would be nice to have a paid off house, the experiences you have when you are in your 20's and 30's cannot be replicated when you are 50+. You just don't want the same things/won't take the same risks etc. You'll be wanting staid package holidays and walking tours...

Plus, the world has changed markedly since I was 20-30. It's harder to travel & less safe (in many of the developing/even developed countries I visited or lived in). Yes, I won't be a wealthy, early retiree but I also have no regrets.

Wrong. I'm even older than 50's and don't want want staid holidays or walking tours. We won't go on holiday anywhere quiet, get taxis everywhere on holiday and at home have a very active social life that revolves around city centre bars and restaurants. You must know some very boring older people

venusmay · 09/01/2022 08:31

I've been with my dp for six months and he has already paid his mortgage and has really prepared for the future. He's horrified that I am changing career and have no savings! Having said that I think it's down to the person, I haven't had the chance to save.

Riverlee · 09/01/2022 08:31

@UserBot989

Who would buy a house at 19 though? I think realistically, 27 or 28 would be young to buy a house and then even high earners would be lucky to have it paid off by 55.

Why would 27 be young to buy a house?

My dc plans to buy a flat in the next up year, and he’s in his early twenties. He’d rather pay a mortgage then rent.

5329871e · 09/01/2022 08:32

It’s unrealistic. Maybe house by 25, mortgage free by 40 and retire by 55 if you’re lucky and frugal.

Life has to be a balance between enjoying the present and saving for the future. Don’t be wasteful, but do enjoy it.

TiddleTaddleTat · 09/01/2022 08:34

Time is much more precious than money.

2DogsOnMySofa · 09/01/2022 08:35

Being mortgage free is entirely possible without skimping in luxuries and holidays if you get on the property ladder early enough, don't get divorced and don't keep moving. My first mortgage was at age 17 so in theory could have been paid off by the time I was 38. However I've moved house a number of times, upped the mortgage, extended the term and also go divorced so had to start again almost, so I won't be mortgage free until I'm 55. I used to over pay on my mortgage but after a conversation with my financial advisor I decided to put the money on over paying into a pension, get the tax relief in that and use the lump sum I'll take at 55 to pay off my mortgage

WalkingOnSonshine · 09/01/2022 08:37

I’m early 30s, in the south & could technically pay off our remaining 380k mortgage now.

We’re likely to move somewhere bigger in the next 10 years, but aiming to be mortgage free by 50, reducing hours further & both DH & I retired for 60 respectively.

UserThenLotsOfNumbers · 09/01/2022 08:39

@Toadsinholes

Be careful what you wish for. We used to rent with no hope of buying. We now live mortgage free (30s) but at a huge personal cost - inheritances from the death of my best friend and several members of our family. I don't often tell people I have no mortgage because some people have been funny about it - think comments like "but isn't it great you have security" which is fair enough but yikes. I'm grateful for what I have of course, but would much rather my loved ones were still with us.

UserThenLotsOfNumbers · 09/01/2022 08:39

@NewPapaGuinea

Why put off enjoying life now for some future you might not live to see?

100% agree

user5656555 · 09/01/2022 08:41

I don't understand the rush to retire and to restrict yourself so much now for an uncertain future. I enjoy my job and honestly retirement kind of scares and depresses me..that "final chapter"... I'm not sure if I will ever fully retire. I'm much more of a live in the moment kind of person, I have an excellent pension though (public sector), and own our house, but won't be overpaying the mortgage (massively) whilst we have children, right now my priority is raising them and having lots of holidays and experiences, the mortgage is manageable and I'm not worried about paying it off decades early- I want money now whilst I'm young raising children, why would I sacrifice that now to have hundreds of thousands in the bank when I'm older with much less responsibility.

There is a middle ground.

Savoury · 09/01/2022 08:42

I have been fortunate to both pay off the mortgage, have a good pension and attempt to “retire” - all in my 40s.
As a driven person, life lost its fizz. I got a new job after a short break - at a similar intensity to before - and upgraded the house so have a decent mortgage again. I am very happy.
Unless you are obsessive about something low/not paid - surfing, painting, extreme sports - retirement is for the over 60s. By all means drop your hours or intensity in your mid 50s but remember statistically we will be alive when we are 85.

DontKeepTheFaith · 09/01/2022 08:44

It’s not realistic nowadays unless you live in a cheap area. Down here on the south coast even a flat can set you back £200 thousand. Not easy to get a mortgage that big or pay it off that quickly.

We paid our mortgage off when I was in my 40’s but DH is older. Our mortgage was only 100,000 though, and we just took chunks off over the years through savings. DH has an awesome final salary pension and is retiring at 62. I don’t have a great pension and my retirement age is 67. I can’t see me retiring much earlier as we want to support our DSes if they need it with house deposits etc.

supermoonrising · 09/01/2022 08:45

The average age of a first timer buyer in the UK is now 34. And 50% of those were supported by parents.

While in many countries it’s a normal, even expected, cultural thing for parents to stump up cash/loans for first houses, the flip side is that in those countries the older generation will often then live alongside the younger generation (they stumped up most of the cash for the property, afterall). And of course this is situation is just another nail in Britain’s woeful social mobility, with generational wealth being ever more important.

SportsMother · 09/01/2022 08:47

This reply has been deleted

Message withdrawn at poster's request.

chessycurls · 09/01/2022 08:50

I'm not sure how you land such a high paying job so young to buy a house at 20 & retire at 40. No kids helps though.

Opal8 · 09/01/2022 08:50

@SylviaTrench

Based on past experience with frugal people I wouldn't choose to be friends with someone who lived like that.

💯

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