What age will you have finished

[Lastchristmasibakedyouatart]

Paying off your mortgage?

Inspired by another thread.
We have what I *Think is a fairly small amount left on the mortgage-around £120 k, but working it out, I think we’ll be around age 69 by the time we’ve finished paying it off, I’m only basing this on how much we’ve paid off so far in the amount of years..69 feels disappointing.
We’re both 45 (Dh and I)

How old will you be when you’ve finished paying the mortgage off and how much do you have left?

No mortgage and was about 40. Single parent but houses are relatively cheap where I am

At 55 you can take 25% of any Private Pensions ‘pot’ Tax-Free. Most people do so and pay off a chunk/ their entire Mortgage.

Assuming we stay here, ours is scheduled to be repaid just before I turn 63 and DH will be coming up to 62. However instead of overpaying we have been buying shares that we expect to increase significantly in value over the next couple of years so we hope to clear it in our late 40’s instead. Failing that inheritances are highly likely to be clearing it in our 50’s…

I don’t think “most people” do……

I have £35K left and will be 80 on completion

Mortgage 43 12 years early. Started overpaying from day one at £550 Vs £467. Then we just put it up 25% of each pay rise. As well as chucking in a few quid here and there.
Currently paying £660 on a minimum payment of £247.

Our joint income is a smidge under 60k or single largest cost is council tax at £200 per month. (And childcare currently totalling £450 - it actually comes in more like £500 but we have a £4k balance on childcare vouchers) that'll drop to about £120 in 18 months then about £80 when both are at school.

So basically when youngest starts primary we'll have paid the mortgage off and stopped paying childcare and we'll be about £1100 a month better off into our disposable income.

We have no other debt and simply don't buy it if we can't pay for it. We have two cars which while not being the latest models are perfectly adequate, we have 3-4 hols a year, a family awayday each month, an adult night and a day walk/ pub lunch. We eat well.

Yes we've have to cut our cloth but it'll be great to be mortgage free. It helps we got a bargain part ex on the house. I've convinced a colleage to start overpaying a small amount on her mortgage (again a portion of her pay rise that would have just evaporated and never been noticed). She was staggered that a month ago despite her mortgage rate going up her minimum payment fell, she kept a static payment (think she increased it a few quid) at the original rate so next time her minimum payment will be less.

Retirement. Well my state pension age is 68. I don't plan on working much past 60 certainly not full time. I've been paying into a private pension since I was 18, I've been in my current job for 15 years and paying into that pension, I've kept paying into my original pension, when the mortgage drops off I'll put £100 a month extra into that and hopefully take it sooner. When we're not paying childcare and a mortgage a smaller income will leave us with the same to spend.

Another idea is that when our mortgage is paid we look at buying a simple buy to let property with some of the spare cash. Let someone else pay the mortgage for us (sorry renters that's essentially what your doing) then when we get to 60 it'll either provide an income or we can sell it and use the cash to boost our pension pot.

*If you're not paying your maximum amount AND you can afford to tie the cash up putting extra money even if it just a tenner into your pension or an additional pension is a great idea, the government tops up what you put in.

I give myself £100 a week to spend, for bits of shopping, lunches, nicknacks, etc. If at the end of the week I have any money left over I either transfer it to the mortgage or pension. Even if it's just a quid. Surprising how it adds up

Why has no one said, MOST people would have been better putting a chunk of this money in their pensions.

I said it 2 days ago

We paid ours off last week. Been overpaying for a couple of years by 1500 per month. We are 49 & 50. It was a redundancy lump sum that allowed us to clear it.

Great ages. Well done, you two.

To my embarrassment, I have to say I don't really know. It does sound really tough.

Could you increase your payments? Just paying a little more each month might end the mortgage a lot earlier so I've heard.

Ironically you'll be well old enough to apply for 'equity release' long before the end of the mortgage!

Whatever you decide, I wish you luck.

I am no mortgage advisor but I believe ya pay the interest first so it will go done faster towards the end as the % ya pay will be less, not % wise but actual hard cash

Ooops missed that! Well you are right

This is so wildly different for different people in different parts of the country it's VERY difficult to compare.

You said your mortgage is "small" but that's more than my entire house cost only 6 years ago.

Some people are overpaying by £2k a month, but that's more than I earn.

It's apples and oranges.

The danger is of course that you can only put in 40,000 per year and your employer must not let your earnings drop below minimum wage and that can be limiting. My employer contribute the national insurance saving to my pension to as well.
But overall it’s a strategy it’s one I wish I’d started much much younger. Absolute worst case scenario, I end up with 25% of my pension tax free which is basically free money that’s been acquired over the past 30 years to spend on renovations.

I paid off my mortgage at 35 5 years or so ago. I bought at 21 so bought at a good price

Ive since moved to a bigger house so now have a mortgage. Though i expect to pay it off after a few years of working overseas

I paid off mine at 53 (this year). I had a mortgage from the age of 19.

Agree it doesn't help but actually @Mepop the majority of owner occupiers in the UK own without a mortgage.

We paid ours off in 2011 using inheritance money. Term would have ended in 2026. I was 50 when we paid it off. we had about £75 left at the time.

That may well be true but is it also true of Mumsnet users who tend to skew younger. Generally people with children still living at home.

I didn't know this. I'm surprised.

Yes it is surprising. But it's rising all the time:

https://uk.finance.yahoo.com/news/no-mortgage-outright-ownership-of-uk-homes-rises-120958266.html?gucereferrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guceereferrersig=AQAAAB8aHwmwZgILY1sOONqqHYeldSTP4IiuxFATAUZtKD9fAwubu9ZSYdMsANUp05utDwwCihwH9D-kp2ae5uxYrHHWCqkHweMrBxi0LaZyxwsmNDGrdCpPIYdhYb2b98gAw5P-qC-JfSTMJFij1vgnXy26qaAp4dmvn1N5zdKcCG

Will start to fall again soon. Home ownership (with or without mortgages) is falling and numbers of first time buyers are declining.

Isn’t that because the birth rate is declining or has declined? And new immigrants to the country don’t become home owners until much later in life and potentially second-generation.
I have a lot of children, and they will all be purchasing a house with deposits provided by me if necessary, but it’s unquestionable that they won’t own a house or a flat of their choosing

Thats probably a factor. But it's changing in % not just absolute numbers.
Things will look very different in a couple of decades I think.