View Poll Results: What's the approach to your mortgage?

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  • Forget it until remortgage time

    18 33.33%
  • Overpay

    17 31.48%
  • Invest / save

    3 5.56%
  • Balance overpaying and investing

    3 5.56%
  • Offset

    5 9.26%
  • Mortgage free and luvin' it

    8 14.81%
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Thread: Mortgages: Pay down / Save / Offset?

  1. #1
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    Mortgages: Pay down / Save / Offset?

    Nosey post :D... A little premature in asking but... Wondering what the NL massive's general opinions are on their mortgage. Thanks to the build ours is bigger than I'd like which makes me more risk adverse (and think about it more than I'd like). Next year we'll remortgage, off the build-mortgage to a regular mortgage and am starting to look at figures and scenarios for what best to do:

    Forget it - Look at it when it's time to re-mortage and try to forget it until then

    Overpay - Reduce interest costs and exposure to interest rate rises.

    Save / Invest - Flexible and longer term could work out better (e.g keep ISA allowance long after the mortgage is done + compound interest). However, requires taking risks which may mean losing money and then still having to pay a higher level of interest on the mortgage than if simply overpaying.

    Balance Overpay and Investing - Save 50%, overpay 50%.

    Offset - In theory the best of both worlds. In reality a flexible way to reduce interest payments shorter term if you can't commit to overpaying or saving. Others love this, not sure it's for me.
    Last edited by Brando; 21-10-2015 at 12:21 PM.
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  2. #2
    Regular Nige's Avatar
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    I`m a big believer in paying off my loans wherever possible. I don`t owe anything apart from my Mortgage. That`s now down to just under £4,000. I`ve always overpaid and with the interest rates being so low, it made a lot of sense to do that for me.

    I`m sure there could be some other long term financial investments I could look at, but I had a mortgage when the interest rates were at 15% (Yes I`m that old ) and ever since have avoided loans / credit wherever possible. Obviously this isn`t possible with a house for most of us and as mine was a self build, finances were tight after the we moved in but once we sorted ourselves out we started overpaying and it`ll be paid of in under a year now.

    Then no matter what happens, the house is ours to sell if necessary. Perhaps it`s a somewhat old fashioned approach, but it`s what we`ve done and I`m very happy to have gone that route

  3. #3
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    Unless you can pretty much guarantee your investments will outperform paying down your debts, just pay down you debts.

    Like Nige, I have very little personal debt. My mortgage, which I'm more than halfway to paying off. Should be gone in less than 5 years, which will mean we're debt free when I'm 45.
    I have one other personal loan I took out to start a business, which will be paid off in the next 6 months.
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  4. #4
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    I am thinking of taking out a mortgage (at 2%) in order to invest the funds (currently getting 7-10% on my investments). In theory it's the right thing to do but psychologically it is nice to not have a mortgage.

    In your position I would forget it until it's time to do something and then I'd go for an offset which gives you maximum flexibility to both enjoy life and be risk adverse as and when you feel like it.
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  5. #5
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    My dad over paid his mortgage and once he finally cleared it many moons ago kept putting the same money away each month then went and bought there place in france cash. My parents sacrificed a fair bit saving and yes we have had a great lifestyle with recent events you never know whats around the corner you still need to have a comfortable happy life and not worry about mortgages etc.

    I was saving since I was 16 for my mortgage every spare penny went into a account, birthday money, xmas money etc and never touched it regardless but thats all ill say on the matter
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  6. #6
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    We overpay and offset on our current mortgage, gives us the best of both worlds, in that we can access some cash quickly if we need to.

    Because of the way I work, it suits me that the bank should always have the first charge over our main house. Saves a potential business venture being secured on the house.

    At some point in the next 18 months we'll remortgage, draw down a chuck of equity and drop it straight into some residential and commercial properties. Our house will hit its maximum value for location at that point, and we may as well make the money work for us in other ways.
    tbc

  7. #7
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    One handy option with my mortgage is that I can overpay, and then take payment holidays to get back to the original repayment schedule, handy when the latest work on my old place cost a little more than expected, managed to have a break from repayment for a few months. So paying down extra made sense to a degree, but it's always handy having some spare cash to get at for unplanned things, as missing repayments can only generate cash at your repayment rate in this scenario.
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  8. #8
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    I like fixed rate, repayment mortgages. Personal thing.

    We keep ours very manageable, but choose to over pay by monthly standing order. Works for us!

    The only advice I have is to play the game when remortgaging. Don't assume a valuation, see what they suggest. We were pleasantly surprised and that helps improve the LTV. We also paid a chunk down (an extra £2k from memory) when remortgaging to push us into the next LTV catagory. I think between the higher valuation and the extra payment, we knocked 0.5% off the interest rate.

    Locked in for 3 years, I think.
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  9. #9
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    If you can offset, at a decent value, do that. You keep any overpayments available for anything going wrong, but they're still acting to reduce your mortgage. Then when you remortgage the funds are there to reduce the value.
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  10. #10
    as long as your mortgage company recalculates over repayments instantly over paying is worth doing always adjust term not payment too, if not, pay into an ISA / savings and then use that to pay annually just before the recalculation, that way you gain some meagre interest instead of letting your mortgage company have the benefit.

  11. #11
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    I think its best to reduce the biggest loan in your life as quickly as possible, therefore have overpaid any spare finances i have in the last 6 years. I go to quite extreme measures in that whatever is left in the account at the end of the month I overpay on top of the monthly overpayment i've already made. Sometimes its hundreds sometimes its tens of pounds, however do that monthly for 5 years at £20 per month in loose change and it amounts to £1250 odd. Thats a whole month on my mortgage!

    Using this approach means I will be mortgage free in a nice house in Surrey by the time i'm 37 currently.

    Rates are so low, it seems pointless fixing it at the moment as i don't owe too much as the difference of saving 0.5% versus the aggravation of setting up a mortgage losing flexibility isn't worth the £15 saving per month!

    My standard mortgage after the fixed term i had 10 years ago turns out is very flexible, so happy to keep it for the next few years.

    I also invest using a firm called Nutmeg which i find very good, but not massive amounts as i prefer to pay overpay in preference of the risk this type of investing incurs.
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  12. #12
    We fixed ours for 10 years last year. We prefer to know how much we have to pay and as long as it's at a rate we can well afford we are happy. I'd like to say we overpay, but we don't. There is always something like a holiday, Rally, or something else which looks like much more fun. I don't consider it to be a bad thing.

    The other thing worth considering and this may sound mercenary, is that we live in an age when many more people are home owners, than there used to be. That means our parents are likely to own their own homes and the natural progression is that as their children, we will benefit, at some point. Then again, our children will benefit from us....That will likely clear any outstanding mortgage and ensure things are in place for you to look after your children, when the time comes.

    As someone said earlier in the thread, don't over stretch yourself now, trying to pay something off, at the detriment of your most active years. Enjoy them while you can.
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  13. #13
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    Quote Originally Posted by Gary Kinghorn View Post

    The other thing worth considering and this may sound mercenary, is that we live in an age when many more people are home owners, than there used to be. That means our parents are likely to own their own homes and the natural progression is that as their children, we will benefit, at some point. Then again, our children will benefit from us....That will likely clear any outstanding mortgage and ensure things are in place for you to look after your children, when the time comes.
    Not mercenary at all but as we all live longer, we may well be well into our 60s or older before getting our hands on an inheritance.
    Personally we have relied on no one, had no help over the years etc and haven't factored in any inheritance to pay off a mortgage. Any inheritance will 99% likely go straight to the kids as I'd rather they get a leg up in their 20s/30s than we benefitting from £50k in our late 50s or older...when we have adequate provision. (The whole 'my house is worth xxx' annoys the hell out of me as all it does is push the prices up to a point where future generations...my kids and grandkids...will struggle to afford to buy one)

    Oh and back on topic... we have tarted the mortgages over the years and will be paid off within the next 9 mths when the penalty for the one we currently have is over.
    Lots of good advice..way better than I could give.
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  14. #14
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    Did the overpay thing as much as possible, like Andrew says. My tick is in the last box. :-)
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  15. #15
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    The poll is missing a seventh option;

    • Staring at the bottom rung from a great distance and spending a new Audi on rent every year, aka 'What's a Mortgage?'

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  16. #16
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    Here's my story.

    Overpaid and managed to buy another property. Ended up giving it to someone I didn't like. Also had to waste the best years of my life paying it. Got the balance all wrong. Bugger.

    Started again and with a huge mortgage. Not going to sacrifice living again so I pay a reasonable amount on fixed term (I remember 15%). Decided not to overpay again and if I inherit then all good and if not it'll get paid when it gets paid.

    No other debts though, much happier and I'll promise myself a nice car at some point.
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  17. #17
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    Got my mortgage with every intention of overpaying. But sod that, rather the money now than be mortgage free a bit earlier.
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  18. #18
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    Quote Originally Posted by Graham88 View Post
    Got my mortgage with every intention of overpaying. But sod that, rather the money now than be mortgage free a bit earlier.
    Same here really.
    Intention was to be mortgage free before retiring by building and selling 3 houses. Instead of reducing our mortgage we have bought into (are are currently anyway) the 3rd property which will have much more equity in it when we do eventually sell.

    That should still hopefully clear the mortgage and be left with a nice sum after say another 5yrs or so.
    f
    I could sell up now, be mortgage-free with a load of cash but do what with it? I'd have to rent, which is wasteful, so it's gotta go into property.

    We're just about to fix for 5yrs on a part interest-only and part repayment. All easily affordable. As of now though bonuses will be used for holidays and reducing mortgage. New firm has retention/loyalty bonuses of your annual salary at the end of the project you're working on (typically lasts 3-4yrs), so can be a very nice way to receive large lumps of cash. Although most goes to Mr T Axman though, which is rather annoying.

    That said, our buyer pulled out last night, just cause he's changed his mind. I on the other hand have spent quite a lot of cash recently on architects fees etc., all now potentially wasted money. The git.
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  19. #19
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    Kind of expect everyone to have differing opinions, and overpay to eek out ahead. Especially given this is NL and we're all millionaires! Interesting to see the poll equally favour Overpay and forget.

    Definitely over thinking it and definitely in Nige's camp when it comes to debt. Overpaying seems the least 'risky' way financially, but it's not without the cost of lost opportunities. A careful need to balance not missing out on life as a result of doing it.

    Thanks for the feedback, ideas and comments so far! Very interesting to hear how a big mortgage is useful in protecting your home too Rich. My mind isn't that financially mature. I view debt as bad! There is definitely scope to improve my attitude to the mortgage (especially as without it we would still be renting).

    Like Andrew's idea of scrapping the current account monthly to fund the overpayment. Cover everything else off and dump the remainder appeals. Though I suspect that will be tens of £ if we're lucky at the mo :D.
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  20. #20
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    Update: we remortgage off the build mortgage at Christmas. Using a broker from PH (Sarnie - massive thumbs up, nice guy and good broker saved us £600 and lots of hassle) after I'd done all of the studying / stressing / research I could stand. We've gone from 3.9% (down from 4.2 due to eco discount) to 1.9%, for 5 years fixed.

    Top tip: While applying for a mortgage don't decide you can't sleep and watch 'The Big Short'. Then final check your email to see an issue with your mortgage app... A good nights sleep I did not get :D. Thankfully it was an easy fix. Our Broker proved his worth lots. Do watch the big short, it's a good watch.

    5 years fixed at a low rate has changed my views. I feel more balanced, both financially and 'emotionally'.

    It's not been a fun 18 months, I'm not going to lie. It's not a complaint and I'd still do things the same. We still love the house! It's been a challenge and something I am not keen to repeat in a hurry. Utterly worth it, but I need a lie-down and my immediate focus is now on rebuilding emergency savings. From there we'll see. Overpaying appeals and the low-interest rates can't last forever.
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  21. #21
    Glad you feel more balanced chap.

    We fixed for 10 years recently. Luckily the rate was lower than we were previously paying. We are putting the money saved away and overpaying in chunks as and when.

    We like knowing where we are every month. It makes us feel more comfortable. There is always someone better off, or on a better deal, but we are happy and that means more than anything to us
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  22. #22
    Ollie did you get your house revalued when you remortgaged off the build?

    If so, did it improve your LTV much?

    Just curious if a house that was built, in cornwall (presumably?) has gone up much in 5 years

    Glad it has worked out buddy

    Currently mortgage free but if we move we will try to smash it down using an offset, which is what we have done previously

  23. #23
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    Quote Originally Posted by Floyd View Post
    Here's my story.

    Overpaid and managed to buy another property. Ended up giving it to someone I didn't like. Also had to waste the best years of my life paying it. Got the balance all wrong. Bugger.

    Started again and with a huge mortgage. Not going to sacrifice living again so I pay a reasonable amount on fixed term (I remember 15%). Decided not to overpay again and if I inherit then all good and if not it'll get paid when it gets paid.

    No other debts though, much happier and I'll promise myself a nice car at some point.
    This.

    It's very difficult starting again in your 40s.

    It's immediately evident that it's all about compromise.

    You can have a great lifestyle but unless you have a high income, it may preclude you becoming a house owner.

    You can pay off your mortgage early, but it may mean you are forced to compromise on the property type: small, no garage, dodgy area.

    Overpaying is obviously a fantastic idea, but you need the disposable income to do it, that means something else has to give.

    My financial planning is all geared up around retirement at age 60. I use a combination of offset and repayment mortgages and I maximum fund my pension.

    In turn this means no toys, a 14 year old high mileage car and careful consideration of any luxuries as I must look at the opportunity cost.

    That said, my strategy is aggressive. With only 15 years to rebuild my financial life it has to be.

    I admire those of you who have paid off your mortgages, but I don't understand why you haven't immediately bought another property- even if it was just to benefit your kids in the long term. There are few investments that offer similar long term prospects (yield and growth) and if you object on moral grounds, it's justifiable assisting your children get a start on the ladder.

    I may be entirely wrong.

    I could die when I'm 61 and lie on my death bed cursing why I never bought a nice car whilst I could have enjoyed it, or taken a holiday, or whatever. But then we are straight back to those compromises.......

  24. #24
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    Since I commented on the thread, we sold our house that we had 90% equity in and bought a do-er-upperer down the road. Mortgage turned into 60/40 equity and having decided to do an extension and subsequently re-mortgaged again (twice in a year) we now have about 40% equity.

    Extension starts on Monday and the house wil just about double in size with the style of living (open plan / contemporary) that we've craved for years. When the build is finished the house will have increased in value by circa 20% which will change our LTV by a chunk. Hopefully be more like 55-60% equity again, however long term once the expense is done on the build I'll start overpaying again.

    Reasoning to do the big extension was to ultimately have better quality of living and create something we can downsize / uprgrade or whatever when we want to.

    I also like to buy toys and have nice holidays and things. As nick said you could drop dead at 61 and you have one life. I'll live it and forgo a nicer area for the house to enjoy the nicer things. All about balance, however it's quite dramatic where I live hence mentioning it. 2 miles one way is Oxshott (£2m ave price for a house), 1 mile other way is claygate (my house is additional 40%), 2 miles another way is surbiton (40% more expensive due to railway line) etc. I'll live in Chessington thank you and have some nice toys rather than a postcode any day. Having said that if I earned more or had a chunk come my way I'd move somewhere nicer and use the same stategy!
    Oh and very impressed with www.nutmeg.com that's where I continue to put my isa allowance. Risk level 8/10.
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  25. #25
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    Ours is up for renewal. An offset looks a good move for us, but need to do more research.
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  26. #26
    Quote Originally Posted by leavingeasy View Post
    This.

    It's very difficult starting again in your 40s.

    It's immediately evident that it's all about compromise.

    You can have a great lifestyle but unless you have a high income, it may preclude you becoming a house owner.

    You can pay off your mortgage early, but it may mean you are forced to compromise on the property type: small, no garage, dodgy area.

    Overpaying is obviously a fantastic idea, but you need the disposable income to do it, that means something else has to give.
    Er, ditto?
    Same here, rebuilding life later on sucks... We fell lucky on where we chosen the to live. Nice area in a region that's low cost. So got a house we love and could not of dreamed of owning down south. The compromise is that I may have to do a few nights away from home if I change jobs, but that would be factored into any package I'd take The house will never be massive value but can't imagine moving anyway.
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  27. #27
    This topic is on my mind more and more. We fixed our mortgage when we moved 3.5 years ago, and I want to be able to extend the house a little - the planning will take some time, so the last 18mths of the fix will be key for us to figure out what we're able to do - as a positive, the prices have moved a bit here since we bough, which will help with the LTV calculations at least.

    The mortgage adviser told me last summer that I should buy the biggest house that I could afford, as its the single biggest tax free investment that I would ever make - whilst thats true, and I would love the space to not live in each others pockets when my kids are undoubtedly still living at home in their 20/30's, think we'd all benefit from having the nice holidays in the next 15 odd years, and generally enjoying life. I couldn't imagine living a life all about my house and mortgage, so I'll continue to balance the house and life as best I can - I don't want to look back when I'm retired, and wish I'd done things, I have enough regret as it is

  28. #28
    Regular Peach-uk's Avatar
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    Quote Originally Posted by simonsaunders View Post
    Ours is up for renewal. An offset looks a good move for us, but need to do more research.
    After several years moving around trying several brokers i now have an incredible mortgage broker. He finds deals like no other and is a proper mortgage geek ( top bloke too). Let me know if you want his details.

  29. #29
    Quote Originally Posted by leavingeasy View Post
    This.

    It's very difficult starting again in your 40s.

    It's immediately evident that it's all about compromise.

    You can have a great lifestyle but unless you have a high income, it may preclude you becoming a house owner.

    You can pay off your mortgage early, but it may mean you are forced to compromise on the property type: small, no garage, dodgy area.

    Overpaying is obviously a fantastic idea, but you need the disposable income to do it, that means something else has to give.

    My financial planning is all geared up around retirement at age 60. I use a combination of offset and repayment mortgages and I maximum fund my pension.

    In turn this means no toys, a 14 year old high mileage car and careful consideration of any luxuries as I must look at the opportunity cost.

    That said, my strategy is aggressive. With only 15 years to rebuild my financial life it has to be.

    I admire those of you who have paid off your mortgages, but I don't understand why you haven't immediately bought another property- even if it was just to benefit your kids in the long term. There are few investments that offer similar long term prospects (yield and growth) and if you object on moral grounds, it's justifiable assisting your children get a start on the ladder.

    I may be entirely wrong.

    I could die when I'm 61 and lie on my death bed cursing why I never bought a nice car whilst I could have enjoyed it, or taken a holiday, or whatever. But then we are straight back to those compromises.......
    Agree with what you're saying here

    My personal opinion would be to invest into more property and simply buy to let it (I know this is not as lucrative as it used to be, but it's still not bad.

    We bought our house in 2012 when mortgages were very difficult to get especially for someone self employed with only 2 yrs worth of accounts. I had managed to save the deposit but the interest was something like 5.3% fixed for 2 yrs. so I was paying a LOT!! Then it dropped by about 6/700 when we remortgaged again onto a fixed but this time 5yrs.

    Ive been trying hard to save for an investment property ever since but this is easier said than done especially since we have had a baby and have another one on the way too...

    You have to strike the lifestyle balance right too, so we have had the odd holiday and regularly eat out and enjoy ourselves. I do however spend far too much money on cars--- this I'm afraid is an illness and can not be cured.
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  30. #30
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    Quote Originally Posted by hobbit View Post
    Ollie did you get your house revalued when you remortgaged off the build?
    If so, did it improve your LTV much?
    Everything was geared off the original value to enable a 60/40% LTV mortgage, and the better deals that come with it. We used all of savings, apart from our longer term investments, and capped our mortgage to help hit the target. Our mortgage provider was happy to loan a lot more, I just couldn't face it. Ideally, we wanted to be around 50% so we had a buffer. The 27% overspend somewhat did for that.

    The re-valuation was a tense time. The concept of it being in someone else's hands and opinion really got to me. However, it all worked out and we ended up with a nice surprise :D. All being well at the end of the fixed period we should be 60% equity 40% loan and have a good buffer if the property market takes a dive. It's our forever home so the value only impacts the LTV. It's still a nice feeling / confirmation that we did a good job.

    Quote Originally Posted by Gary Kinghorn View Post
    Glad you feel more balanced chap.

    We fixed for 10 years recently.
    Thanks, we think like that too. It's all a crazy balance and more stressful than you think. Until you've been through it, and then you wonder why you stressed (all being well). If the interest rates are still low in 5 years I expect we'll overpay a chunk and lock in a 10-year for the same reasons. Worth noting that our broker is 100% against 10-year deals because of the lack of flexibility and unforeseen events that can occur over 10 years. This has also made me think about a tracker. It'll depend on where we are in 5 years, mostly the rates too.

    Quote Originally Posted by ChrisP View Post
    This topic is on my mind more and more.

    The mortgage adviser told me last summer that I should buy the biggest house that I could afford, as its the single biggest tax free investment that I would ever make
    At times it was all I could think about, I regret this and need to learn to deal with these things better. I disagree with your mortgage adviser, but I guess they are biased trying to sell you a mortgage :D.

    Balance is utterly key. Finding what works for you essential. We're not 100% there yet, but I feel closer / happier. Like others have also said we want to have holidays and live our life, you only come this way once etc...

    Oakie, I drive the old 530d for similar reasons. It's an area I can still enjoy the car and save lots of cash. I view my company car allowance as my Track day / car budget to be spent on the Clio, Trackdays, DN Events, Karting, keeping the 5 on the road, and hopefully racing.

    Quote Originally Posted by karan View Post

    My personal opinion would be to invest into more property and simply buy to let it (I know this is not as lucrative as it used to be, but it's still not bad.

    Ive been trying hard to save for an investment property ever since but this is easier said than done especially since we have had a baby and have another one on the way too...
    Yes, the build overspend has done for what I hoped would be our BtL deposit. Saving up for another is proving tricky. I want to be a crapitalist landlord for all the reason Oakie mentions. And, because I want to obtain a certain amount of financial independence in my 40s and a balanced set of investments is the only way I can see to achieve this. I don't fancy retiring, I like work. I just hate the pressure of HAVING to earn monies.

    Edit: And I want a 911/an M-car and I can't get one until other things are sorted.

    “If you can’t afford to lose it, you can’t afford to buy it yet—otherwise the object owns you rather than vice versa.” Peter Adeney
    Last edited by Brando; 12-03-2017 at 09:15 AM.
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  31. #31
    Regular Kev_G's Avatar
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    Quote Originally Posted by Brando View Post
    “If you can’t afford to lose it, you can’t afford to buy it yet—otherwise the object owns you rather than vice versa.” Peter Adeney
    This is the way I view it. (love the crapitalist comment )

    I was saving for another property / extention on my house but sadly all my funds / desposible income went with my seperation.

    Mortgage wise I can get a great rate from work but I need a deposit again which is what I am aiming for over the next few years.

    Great thread and really really helps educate me
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    Quote Originally Posted by Andrewt View Post

    Reasoning to do the big extension was to ultimately have better quality of living and create something we can downsize / uprgrade or whatever when we want to.

    I also like to buy toys

    Oh and very impressed with www.nutmeg.com that's where I continue to put my isa allowance. Risk level 8/10.
    It's going to be mega! In a great area with off road M-parking :D.

    I like your toys too. Sadly, over toys, Nutmeg is higher on my spending list. Carefully balanced with finishing/improving bits of the house. Also very impressed by their services. We'll sort a LISA with them for 2017/2018. Before we can use more of our ISA allowances there is a need to rebuild the emergency fund. It's not fun knowing we could only survive a few weeks without income. My quality of sleep will improve with 6-12 months of cover in instant access. That's priority 1. Hoping more sleep and less worry frees up more energy to make better decisions and monies.

    Quote Originally Posted by Kev_G View Post
    This is the way I view it. (love the crapitalist comment )

    I was saving for another property / extention on my house but sadly all my funds / desposible income went with my seperation.

    Mortgage wise I can get a great rate from work but I need a deposit again which is what I am aiming for over the next few years.

    Great thread and really really helps educate me
    Sorry to hear about the separation. I'm nosey so this kind of thread appeals :D. Edit: Nosey = interested to learn and see examples of what other people think and do to learn from :D.

    It's cathartic seeing my own thoughts on 'paper' and great to read and hear everyone else's. NL a great resource of differing opinions and ideas / learning ops. I don't share this crap on FB or anywhere else, even though it weighs heavy on my mind.
    Last edited by Brando; 12-03-2017 at 10:22 AM.
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    Interesting thread and a good mix of options as Olly says.

    Overpay for me, but not at the expense of experiences / holidays etc. whilst we're relatively young so a bit of balancing act. We don't have any kids though and a relatively modest house. Aiming to be mortgage free in the next 3 - 5 years, probably move somewhere with more (outdoor) space then so I can collect more old cars
    Last edited by Stu; 12-03-2017 at 12:06 PM.
    Too many cars...

  34. #34
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    Quote Originally Posted by Brando View Post

    Sorry to hear about the separation. I'm nosey so this kind of thread appeals :D. Edit: Nosey = interested to learn and see examples of what other people think and do to learn from :D.

    It's cathartic seeing my own thoughts on 'paper' and great to read and hear everyone else's. NL a great resource of differing opinions and ideas / learning ops. I don't share this crap on FB or anywhere else, even though it weighs heavy on my mind.
    Dont be sorry was my choice had to be done to be happy again. Hard in many ways but was the right thing to do and I feel so much better for it, even if my wallet isnt

    I get the resource / opinions. I've learnt alot from here ;)
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  35. #35
    I hear what you are saying ref the 10 year lock in Olly. We thought it through and decided we would rather be secure at the rate we have now.. The rate can only go up from here, so a 10 year deal should see us ok. At least that's the theory. We like knowing where we are and what we need to pay for the next chunk of time. It saves us from going through what you have been through every couple of years

    From memory we can pay 5% off the outstanding balance every year, while locked in, so we will make payments as and when we can - minimum £500. It makes a small difference to the interest to be paid and knocks time off the duration. All good.

    If we want to settle early there is a £7k fee to be paid. Our thought is that something substantial will have to happen in order for us to want to move, in which case the £7k will be only a small part of the equation.

    You pays ya money, you takes ya chance - but for us having something stable we know we are safe with is important, so it's what we did
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    Those are all the reasons I like the idea of a fix for 10 years. It's our forever home and if we happened to get the cash to clear the exit fee would be trivial like you say. Whatever we decided, in 5 years it will be for a longer duration so I don't have to think about the next 5 years in the same context (eligibility, earnings ratios, LTVs, interest rate changes, etc etc) and way (again, like you point out :D). Hoping it's set to a better personal financial backdrop that enables this.

    This re-mortgage was made from a position of feeling lucky to break even each month, and needing to get off the build mortgage ASAP. To put it into context, we're £500 a month better off as a result of the remortgage for the same amount of capital repayment!

    5 years of fixed payments at a low rate is a comparable dream! The low-interest rate and stability valued in equal measures. Hoping they both mean we can rebuild our emergency fund and keep developing our investments / crapitalist goals.

    All easier now SC's car is nicer. I know this shouldn't matter but A) Happy Wife, Happy Life and B) I strongly felt it was wrong spending money on my hobby of cars while my cars are nicer than SC's daily driver. The balance being restored is already helping in many ways :D. I won't make that mistake again, and I've been far harder on myself about it than SC has. We'd both agreed they were the right choices to help build the house.

    It's all a puzzle, getting the right pieces in the right order is a 'fun' challenge. Balance the keyword and continuing theme in most of our posts :D.
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  37. #37
    There will be others who make different choices and will consider themselves better off. They are hardly likely to tell you they did the wrong thing

    So long as

    1. We can afford the repayments, while able to live a nice life and have some nice things.

    2. Consider we have stability with this as we know there is no chance the payments will suddenly increase.

    Then we are happy and content not to worry too much about what the Jones are doing. Having been in a mortgage when the big crash / huge interest rates happened in the early 90's that's very important to us


    Where is your place anyway Olly - would love to come and say hello when we are down that way
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  38. #38
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  39. #39
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    Interesting to read everyone's take on things.

    I worked hard and took a few risks in my early 30's (before kids came along) and managed to bag a nice house with no mortgage.

    10 yrs later, with three kids on the scene, I have chosen to work less (25 hrs / week) and earn less and spend quite a lot of time watching the little dustbin lids grow up.

    With any spare cash, I invest half of it (pensions, equities) and enjoy half of it (cars, holidays etc).
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  40. #40
    Quote Originally Posted by leavingeasy View Post
    I admire those of you who have paid off your mortgages, but I don't understand why you haven't immediately bought another property- even if it was just to benefit your kids in the long term. There are few investments that offer similar long term prospects (yield and growth) and if you object on moral grounds, it's justifiable assisting your children get a start on the ladder.
    Happy to explain my thinking

    1. No kids, so while I won't go crazy, you get one shot at life and I would like to minimise stress. Debt stresses me out

    2. Buying a second property is an assumption that prices will always increase. Although everything flies in the face of it, I don't see how prices can continue an upward trend relative to earnings

    3. I'd rather be comfortable than try and get greedy. Having a few houses and needing to pay down the mortgages just generates stress and for what? If you are focused on leaving as much money as possible then it makes sense. But otherwise... enjoy life!

  41. #41
    Im on a repayment mortgage. And I live in london. And I have two small kids. And we both work. And no grandparents nearby. I dont get much free time or spare money.
    But on the plus side,the value of the property goes up faster than the amount I repay every month,and im soon moving to a bigger house,still in greater london. And I plan to retire to somewhere far away.

  42. #42
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    Quote Originally Posted by leavingeasy View Post
    I admire those of you who have paid off your mortgages, but I don't understand why you haven't immediately bought another property- even if it was just to benefit your kids in the long term.
    Pffft, they`ll get what`s left when I`m gone

    My financial plans are to retire by the time I`m 55. I work shifts and long term that`s not good for me so the sooner I stop the better. At the moment shifts suit and fund my lifestyle but if I`m still working nights when I`m 55 something hasn`t gone according to plan.


    It`s about balance, you want to plan for the future but also live for today.
    Last edited by Nige; 12-03-2017 at 05:49 PM.

  43. #43
    Quote Originally Posted by pilgrim View Post
    Im on a repayment mortgage. And I live in london. And I have two small kids. And we both work. And no grandparents nearby. I dont get much free time or spare money.
    But on the plus side,the value of the property goes up faster than the amount I repay every month,and im soon moving to a bigger house,still in greater london. And I plan to retire to somewhere far away.
    This definitely works.... so long as house values in London hold in the long term

    That's the question. If they normalise downwards, you won't lose out but you won't get that payout when you exit...

    Fingers crossed (for you) it works out well

  44. #44
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    My kids will inherit when I die. I'm not sure I'll be helping them before that.

    I want to retire now. Giving it away won't help with that plan.
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    Quote Originally Posted by ChrisP View Post
    The mortgage adviser told me last summer that I should buy the biggest house that I could afford, as its the single biggest tax free investment that I would ever make - whilst thats true, and I would love the space to not live in each others pockets when my kids are undoubtedly still living at home in their 20/30's, think we'd all benefit from having the nice holidays in the next 15 odd years, and generally enjoying life.
    I agree with you, we could have afforded more house, but I wanted a comfortable payment and bills which I have got, the house suits me, yes I would like a bigger house but with that comes more mortgage and bills, of which I can spend on fun stuff that I actually enjoy! When I am 50 maybe I will wish I had bought the bigger house as I would be seeing the benefit then, but for now I would rather enjoy the money and spend it on memories :)
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  46. #46
    Quote Originally Posted by Floyd View Post
    My kids will inherit when I die. I'm not sure I'll be helping them before that.

    I want to retire now. Giving it away won't help with that plan.
    The question is will they?

    Been looking at this stuff recently with my lot getting very old. My dad for instance has said all along you and your brother will be ok when I go, you'll have my house...... But will we? It only takes a care home to be needed and at the rates they charge - £3k to £8k per month and his house will be sold and gone in 3 or 4 years. The rub is that at the lower end of the scale they will get the same care in the same home on the NHS so why leave your family home at risk? As long as they are happy with £3k care of course.

    Don't leave it too late, consider trusting the property to your kids before you get too old. Leave it to late on and the probability is you won't last ten years, meaning the trust will be null and void and you'll lose it anyway.

    It costs about £1k to set one up. I'll be doing mine shortly.
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  47. #47
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    Just been through this exercise: my father has Alzheimer's. The potential future care costs are massive.

    We may believe that a lifetime of NI contributions and tax payments should entitle us to some kind of benefit when we are older. However the balance of the population is becoming older, so the old days of the retired being financed by those at work will soon reach critical mass.

    Some might argue that it's socially irresponsible of me to protect my parent's money from being gobbled up by the state. But screw that- they worked for it, they should have the opportunity to decide.

  48. #48
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    Quote Originally Posted by leavingeasy View Post
    Just been through this exercise: my father has Alzheimer's. The potential future care costs are massive.

    We may believe that a lifetime of NI contributions and tax payments should entitle us to some kind of benefit when we are older. However the balance of the population is becoming older, so the old days of the retired being financed by those at work will soon reach critical mass.

    Some might argue that it's socially irresponsible of me to protect my parent's money from being gobbled up by the state. But screw that- they worked for it, they should have the opportunity to decide.
    Don't hate the player, hate the game.

    Do whatever is reasonable, legal and best for you and yours. I am

    If it is such an evil thing, laws will be changed and things evolve again. However, I think society needs to give those with a bit of cash the freedom to keep improving their financial position for themselves and their families - after all that desire to achieve greater wealth or stability is what drives our taxable earnings, which all goes into the pot anyway.

    My moral compass is very much in the direction of my family and what is best for them.
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  49. #49
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    We moved my in-laws house into my wife's name a couple of years' ago for this very reason.

    IIRC different local authorities have different time spans they will look back through but 7-10 yrs is the norm.
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  50. #50
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    Interesting thread this.


    Our Fix 2 year deal ends this June, We did intend of paying money in when we could but have enjoy our self to much so we are looking to fix for 5 years, But I've just got wind that our next door neighbour will be selling up and moving north to retire.


    Now there house is same size as ours but is detached and has land on the side to build an extension on.


    I've got a mad idea of buying and keeping our current house as well. To do this means asked dad for some help.


    I'm extremely lucky to be able to ask for help from him but as a family we worked hard to get mum and dad back to comfortable after property deal fell though and cost dad a lot of money a few years ago.


    The house we have just finished was a hard slog but loved every minute of it.
    Last edited by Ollie_247; 13-03-2017 at 09:45 AM.
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