Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To not want to pay off my mortgage?

185 replies

IProbablyAm2024 · 28/10/2024 09:44

My DH and I are very fortunate to potentially have a nest egg of about £50K. MIL has also offered to pay off the remaining £50K if we put it in our mortgage so we are "debt-free".

I am struggling with this for a few reasons:

  • mortgage is manageable and not a problem (although has increased)
  • our house is old so don't really want to "invest" in it - we might move
  • money is then trapped in the mortgage and unavailable
  • I think a lump sum/nest egg would be more use for large purchases and rainy day problems
  • it reassures me to know this nest egg is available for emergency medical or other expenses
  • I feel exposed knowing it's all in the mortgage
  • we'll be better off each month but only by the amount of the mortgage payment
  • what if we fritter it away each month?
  • I feel bad having my MIL pay off my mortgage- a failure as an adult and a parent (backstory alert)

Husband is on board with the plan and is excited to save £30k of mortgage interest over the life of the mortgage. I think you don't save what you might never pay.

Should we do it?

OP posts:
LikeWhoUsesTypewritersAnyway · 28/10/2024 14:59

HecatesBees · 28/10/2024 14:56

But the money is still there, you can always remortgage anyway

And you can re build a nestegg

Show quote history

Exactly this. ^ I find the 'it will be throwing my money away paying off the mortgage' type comments really bizarre! Confused Some weird clueless comments on this thread!

SalmonLeBon · 28/10/2024 15:39

Depends on the strings and whether you are willing to stand up and say no to them. If it comes with an expectation that you will visit her every weekend, always drop everything for her and never say no, then tell her to poke it. If it is more a case of having to listen to her singing her own praises, I could probably inwardly eye roll for a long time before I would tell her to give it a rest.

We have never managed to find a bond or ISA or other savings vehicle that was paying more than the mortgage interest. But we have never had 10s of thousands in spare cash. Overpaying even £50 a month has saved so much more than it would ever have earned elsewhere.

Entertainmentcentral · 28/10/2024 16:07

SalmonLeBon · 28/10/2024 15:39

Depends on the strings and whether you are willing to stand up and say no to them. If it comes with an expectation that you will visit her every weekend, always drop everything for her and never say no, then tell her to poke it. If it is more a case of having to listen to her singing her own praises, I could probably inwardly eye roll for a long time before I would tell her to give it a rest.

We have never managed to find a bond or ISA or other savings vehicle that was paying more than the mortgage interest. But we have never had 10s of thousands in spare cash. Overpaying even £50 a month has saved so much more than it would ever have earned elsewhere.

I think it depends if you have a goal of actually paying off your mortgage at all. Lots of people remortgage as many times as they can with no intention of ever paying for the property. It's got harder to do that.

gamerchick · 28/10/2024 16:10

IProbablyAm2024 · 28/10/2024 09:54

It always comes with strings. And the strings often put me and my DH at odds. PILs are very selfish, self-centred and "help" us in ways that often don't help at all and make things worse. MIL giving us the money gives her more entitlement to our time and energy.

I can't really be specific as it could be outing but it's bad enough that a bit of me would rather go without. In the past, we have taken the money and the consequences and its never been painless.

Show quote history

Then you already know the answer. Decline her money with a thankyou. Remind your bloke of how much it hurts to take money from them.

Tangerinenets · 28/10/2024 16:13

We paid our mortgage off when we were mid thirties. It’s been nice not having to worry about interest rates etc. We used the money to buy another property.

GivingitToGod · 28/10/2024 16:16

IProbablyAm2024 · 28/10/2024 09:54

It always comes with strings. And the strings often put me and my DH at odds. PILs are very selfish, self-centred and "help" us in ways that often don't help at all and make things worse. MIL giving us the money gives her more entitlement to our time and energy.

I can't really be specific as it could be outing but it's bad enough that a bit of me would rather go without. In the past, we have taken the money and the consequences and its never been painless.

Show quote history

Then that's your answer.You would be forever beholden to them

Stormyweatheroutthere · 28/10/2024 17:07

Is this mil paying for the granny annex on your home up front?

CheeseNPickle3 · 28/10/2024 17:09

CandidHedgehog · 28/10/2024 12:54

At the moment, many, many people pay less interest on their mortgage than they can get on savings - even cash savings in the bank so no risk.

That means every mortgage overpayment instead of saving money loses that person money (more interest would have been paid on the savings than is saved on the mortgage).

Having said that, I paid off my mortgage anyway because of the emotional component to doing so. I just did it knowing it was costing me money.

Edited to say: also, leaving yourself with no savings runs the risk of having to take out a high interest loan in an emergency. Most FAs advise on having an emergency fund first.

Edited
Show quote history

In this case, it's paying interest on £100k and getting interest on £50k though. Chances of getting more interest from £50k than you're paying on £100k (and factor in a gift of £50k outright) seems unlikely?

If it's "allowed" by MIL and the mortgage company, I'd accept the gift, pay £80k off the mortgage, keep £20k as emergency savings and keep the mortgage payments the same. That should reduce the term of the mortgage right down so it's paid off very soon, then the savings can build up again. Best of both worlds.

Thebellofstclements · 28/10/2024 17:28

Everyone saying "go for it!" has either never encountered a controlling parent/parent-in-law or has, but has always been skint enough to put up with it.
£50k in savings means the OP has choices. Which is what money is all about.
An excellent position to be in.

RandomMess · 28/10/2024 17:49

I can completely understand your reticence. I'd be asking your DH what "strings" he thinks will be attached this time.

We're lucky we can overpay and draw down without penalty on our mortgage so all our savings sit there but we can get them back.

If you had no mortgage to pay how quickly could you save up £5k?

Maybe save that for a holiday and put the rest on an interest free credit card to pay off afterwards.

Another issue is losing your credit rating once your mortgage is repaid if you then want to move house.

New posts on this thread. Refresh page