If you are mortgage free how much does it cost to live?

[Notimelikeyesterday]

We could be mortgage free if we relocate...
But DH would have to give up his job, I could just find another/go supply/bank as I'm a key worker....preferably we'd both give up stressful jobs and get some minimum wage ones... we have 1dc...would like another...
Could we survive/ have a decent quality of life/ afford basics if we did this?

How long is a piece of string?

Do you have debts? Commitments?

Why not look at average bills in the area, and add on your usual monthly spending money?

There are so many variables it's impossible to say. I am mortgage free but have a normal PT job, OH works full time. We are comfortable and save each month but also drive ten year old cars.

I'd make a realistic list of your outgoings and use that as a starting point.

I think this is a how long is a piece of string question. You have to consider the house you buy energy is a huge cost right now. Cost of maintenance etc. Will you both need cars, massive cost to maintain. insure, fuel and replace as necessary. if you have another would you work/ pay for nursery?

I'd sit down and create a proper budget over the next ten years and factor in a 2nd child to see if it works out for you.

As a first rough calculation: whatever you spend now, minus the mortgage repayment.

If you are seriously budgeting right now, it might creep up.

But those numbers are probably better than random people saying "£123.45 a week" or "£3456.78 a month"

we are mortgage free and house costs are utilities water gas electric, household insurance, council tax, car costs , tax insurance, deisel, motorbike costs as car, food , so yours will be what they are now at a different address

The same as it costs now excluding the mortgage payment.....?!?! Not sure why it would be any different. Your running / living costs stay pretty much the same except for the amount you pay for your mortgage!

I'd save the cost of my mortgage payment, so could maybe do slightly less hours but that's it.

This.

Obviously things like Council tax are different in different parts of the country, as are your water bills (both of these quite considerably) , your insurances might be different (house, contents, car).
What about commute? That could be considerably more or less. Would you start running a 2nd car if going more remote? That can add on costs.

I am mortgage free and live alone
I am also old (67) and live in a small, modern, well insulated house in South Yorkshire.

I am very low income (state pension) and, because of this, I get council tax support. I keep my house pretty cool in winter, prefering to layer up rather than pay out and, in winter, I only shower about twice a week.

My fixed outgoings each month including low spec smartphone and Bt internet with no netflix or similar, are under £250 per month.

I am coping, not much to spare and no way of increasing my income.

I am sure this is going to get harder as I age and become less mobile

Our total outgoings are £2250. Mortgage is £1500. So we could live off a salary of around £1500-£2000k a month if we were mortgage free.

You need to look at your current outgoing for a guesstimate. Your outgoing less the mortgage payment. Although, they will change slightly in a different house and area.

A family member currently has 3 bed, 2 adults, 2 cars, 2 pets ( with hefty pet insurance) and the reckon 2k a month.

Ok thanks everyone...Will sit on the nest egg a bit longer unless pushed off

Mortgage free couple living in a well insulated 3 bed. £400 a month covers all household bills, not including car expenses or phones.
I'd say we could live frugally on £1200 a month.

£1500 a month with out mortgage payments

We currently live in a tiny house we inherited, with our 2 kids. So no mortgage or rent. We live on a combined income of under €50k (we are in ireland, DH is full time, I'm part time) and we are super happy. Short commutes, lots of time with kids, etc. But we will need to get bigger house as kids are growing, so that will change a little soon.

So many variables! Minus mortgage our 'expenditure' is about £3000 a month but that covers absolutely everything (and £500 is childcare): Christmas presents, food and events, birthdays, Halloween costumes , haircuts and personal care such as dentist, car and home maintenance funds, yearly subs like Prime and various insurances, boiler service, entertainment, clothes for us and the kids, kids classes, household items, and so on.

We don't spend that every month out of our account, but it's how much we need to put aside a month to cover everything so it's there when we do need it. So for example by Christmas each year we will have say £600 in a savings pot for gifts and food and a further £150 for Christmas events.

So it depends what you mean by expenditure and what you need to cover. But a lot of people don't account for many of the above expenses in their budget so then have to find that money when it rolls around.

In terms of just paying the monthly bills, it's a lot less. Probably less than £2000 and £500 of that is childcare.

Fill this in and then you will get an accurate picture: www.moneysavingexpert.com/banking/budget-planning/

We are mortgage free. Without factoring in holidays or meals out it costs us £1,600 for basics, food (for 4 adults), clothes, toiletries, pets, heating, water, electricity, council tax, fuel, insurance, and other normal day to day expenses.

We calculated this a few months ago so we knew roughly how much our adult children might contribute once they started working.

It's Approx £100 per person per week. We eat very well though so I could cut that down if required.

This. When you say move to a cheaper part of the country it's only really mortgage/rent and possibly council tax that is cheaper. Electricity, gas, water rates, insurance etc cost the same wherever you are.

I'm mortgage free and live on £400 - £500 a month.

Get a realistic idea of what you are spending by adding up your net income over the year and your mortgage payments over the year. A year ago how much savings/debt did you have? How about now? The change in this figure over the year is your total spending in excess of your income. Now knock off your total mortgage payments and this is what your household needs unless you make lifestyle changes.

I calculate we would need £3.5ka month once the mortgage ends but our income currently is £5.5k a month. We don't want a big drop in lifestyle.

Council tax might not be cheaper in parts of the country where housing is cheaper, nor water or transport.

London council tax is comparatively low in many boroughs. You can also spend a lot less on transport if you walk or use public transport to get places instead of buying and running a car.

But the rest of the costs are very variable due to differing expectations. Some people spend vastly different amounts of money on quite similar lifestyles, or spend loads on things like food and drink, clothes and grooming, mobiles, cars, holidays, hobbies, leisure, household items etc that others spend hardly anything on.

Our bills not inc food are £600 a month. That’s for direct debit type bills. So on top of that food, petrol, car repairs, mot, hairdressers, etc.

Mortgage free, 2 adults, all bills, food, cars etc, £900pcm.

We both work part time now and still have plenty of disposable income and savings.

Feel very lucky and privileged.

Leisure also costs less in cheaper areas, and public transport. They don't always make loads of difference but sometimes a rural move would make things more expensive because you might get a cheaper home but then have to spend much more on travel. This transfers your spending from the mortgage (which you've some hope of recouping on sale) to something like petrol or train fares (which are gone).

I think you need to write out what you spend now, then adjust each category up or down based on the area you are considering.

The other thing is your mortgage is a long term thing, you are building up equity. So you have to think about what your costs are now vs what you'll own in say 20 years. Don't just consider the short term costs. If you pay off a house worth £300k, you would have a more valuable asset on retirement than if you live mortgage free in a house worth £200k. That should be part of the equation.

There is no right or wrong answer, you just have to fully understand the choices you're making. Moving to a cheaper area is a big decision because once you downsize it can be very hard to reverse if you change your mind.