I got my final annual mortgage statement and I'm like this...

Freefaller said:
I'm no finance expert, but I was always led to believe that overpaying is largely a waste of time depending on the interest rates, and you'd be better off investing the overpayment amount? that said I'm no expert! (I'm not suggesting you're wrong! It's more of an open question - please don't take it as a dissection of your post :)),.

Regardless, that's a fantastic target and fingers crossed you're able to achieve it! Good luck :)
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No, not on repayment mortgages right now.

You generally won't get the return on the investments Vs what you will save overpaying.
 
Its a nice feeling of freedom ,paid mine off in 9 years ,sold up and escaped west Yorkshire buying here with cash ,all within the time of me being on this forum .
nice return on my original 44k investment ,still got my Panasonic plasma that i got on my first mortgage free month to celebrate
 
Freefaller said:
I'm no finance expert, but I was always led to believe that overpaying is largely a waste of time depending on the interest rates, and you'd be better off investing the overpayment amount? that said I'm no expert! (I'm not suggesting you're wrong! It's more of an open question - please don't take it as a dissection of your post :)),.

Regardless, that's a fantastic target and fingers crossed you're able to achieve it! Good luck :)
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Correct.
 
Freefaller said:
I'm no finance expert, but I was always led to believe that overpaying is largely a waste of time depending on the interest rates, and you'd be better off investing the overpayment amount? that said I'm no expert! (I'm not suggesting you're wrong! It's more of an open question - please don't take it as a dissection of your post :)),.

Regardless, that's a fantastic target and fingers crossed you're able to achieve it! Good luck :)
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BUDFORCE said:
No, not on repayment mortgages right now.

You generally won't get the return on the investments Vs what you will save overpaying.
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fez said:
Correct.
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Lots of assumptions here chaps. :p
 
Congratulations!

I finish paying my student loan this april.
Which is 170 pounds a month extra. Couldn't be better timed with cost of living increase!

Mortgage. Well. That has 28 years left! :D
 
Although I appreciate the "debt free, wooooo!" nature of this thread, how have you who have raced to pay off a mortgage balanced that against things such as pensions and other investments? I ask as I find it a difficult balance to strike, looking forward with my finances.

:edit: ah, I see this was essentially asked by Freefaller above! I should read the entirety of threads before responding.
 
Freefaller said:
I'm no finance expert, but I was always led to believe that overpaying is largely a waste of time depending on the interest rates, and you'd be better off investing the overpayment amount? that said I'm no expert! (I'm not suggesting you're wrong! It's more of an open question - please don't take it as a dissection of your post :)),.

Regardless, that's a fantastic target and fingers crossed you're able to achieve it! Good luck :)
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Surely it depends on rate? Mortgage vs investment?

But yeah generally yes.
 
Zefan said:
Although I appreciate the "debt free, wooooo!" nature of this thread, how have you who have raced to pay off a mortgage balanced that against things such as pensions and other investments? I ask as I find it a difficult balance to strike, looking forward with my finances

:edit: ah, I see this was essentially asked by Freefaller above! I should read the entirety of threads before responding.
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From a personal perspective I view it as relatively cheap debt so don't necessarily see the rush to pay it off, but this is very much dependant on how close you are to retirement.
 
I paid mine off at the age of 35! A nice 5 bedroom detached property.

I had to work very hard and had to forgo things like fast cars, but owning my own property outright was more than enough motivation.

Now 37 and completely debt free.
 
Congrats. It must be such a great feeling.

You can compare the gains to be made paying off a mortgage early vs investing the money instead, however you can never quantify the feeling of satisfaction of being mortgage free. I've never met anyone who regrets paying off their mortgage early.
 
fez said:
I mean, its based on statistics and historical data...
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Which is all well and good but when its your own money and your own selection of which pot to invest into, historical trends and average stats mean very little :D. We've been on a bull run for 10 years which has made lots of internet traders "experts" because hodling the stonks has been a pretty easy strategy :cry:

Ex: Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.
 
I have about a year left on mine but I overpaid a fair amount to reduce the monthly payments. I did borrow back and invested in 2020 when I saw an opportunity which did well but I'd rather have the low repayments for the last few months than risk it in the stock market right now.
 
It depends on the individuals circumstances if over paying works, i was on a low wage, a fat isa would have increased my tax bill by losing tax credits, it was 100 percent the corect move, i wasnt going to be punished for been thrifty
Entitled boomer me eh
 
ivrytwr3 said:
2 years left on ours, but they've just raised the interest rate to 1% - was 0.84% for quite some time!
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Surely with only 2 years left that's not going to make much difference in your repayments? :confused:

Freefaller said:
I'm no finance expert, but I was always led to believe that overpaying is largely a waste of time depending on the interest rates, and you'd be better off investing the overpayment amount?,
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The way rates have been since 2008 that's not the case, as someone else posted above you'll never get the money back by saving (unless you're talking risky investments), and in addition with mortgage rates so low it's very easy to overpay and make a nice dent on your debt, and reduce your term. Anyone putting money in an ISA now rather than paying off a mortgage is nuts. Trust me, I'd been saving for my first place for years and years and years, and seeing the amount I got back on my ISAs compared to how much property prices were inflating, you couldn't even keep up. I'm so glad to have a mortgage now as of 6 months ago :D

AdamM6 said:
I paid mine off at the age of 35! A nice 5 bedroom detached property.
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Congrats. Whereabouts in the country are you? Was that your first house?
 
dLockers said:
Which is all well and good but when its your own money and your own selection of which pot to invest into, historical trends and average stats mean very little :D. We've been on a bull run for 10 years which has made lots of internet traders "experts" because hodling the stonks has been a pretty easy strategy :cry:

Ex: Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.
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Huh?

This isn't a trend from the last 10 years, this is a trend going back a very very long time. Of course things could go to complete **** but even then, if you invested in the markets in a sensible, non greedy way over the past 50 years you would have done fantastically well.

If things go so far south that investing in the stock market isn't a good ROI then your house will probably have tanked in value and that overpayment on your mortgage even less sensible.

Every scrap of data suggests that the best way to maximise your money would be to put excess funds you have into the markets over overpaying your mortgage. That being said, its not about what is the most sensible always. We overpay our mortgage despite my firm belief in the former.
 
fez said:
Huh?

This isn't a trend from the last 10 years, this is a trend going back a very very long time. Of course things could go to complete **** but even then, if you invested in the markets in a sensible, non greedy way over the past 50 years you would have done fantastically well.
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Mortgages don't typically run for 50 years. There is a time cost to money. You are essentially advocating a partial 'timing the market' strategy.

If things go so far south that investing in the stock market isn't a good ROI then your house will probably have tanked in value and that overpayment on your mortgage even less sensible.

Every scrap of data suggests that the best way to maximise your money would be to put excess funds you have into the markets over overpaying your mortgage. That being said, its not about what is the most sensible always. We overpay our mortgage despite my firm belief in the former.
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Just lol at your blunt response to the original question then.
 
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