Mortgage Rate Rises

ChrisD. said:
Why the obsession with being mortgage free? Mortgages are super cheap debt, that £500 a month can make you decent money in a stocks and shares ISA or other investment. A mortgage free house is full of equity you can't touch unless you release it through some equity release scheme.
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For me at least it is the way I have been brought up. I am most likely the minority in fact I know I am as the average amount of non mortgage debt in this country is 25-30k. My mortgage is the only debt I need to service and getting that done before I am 40 is my goal.

The government borrows its way out of trouble so they just lead everyone down the same route. It is not sustainable. It will all come crashing down at some point.
 
ChrisD. said:
Why the obsession with being mortgage free? Mortgages are super cheap debt, that £500 a month can make you decent money in a stocks and shares ISA or other investment. A mortgage free house is full of equity you can't touch unless you release it through some equity release scheme.
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Because it feels real.
Stocks feels like gambling even though the s&p goes up way more than most mortgages will ever be, the average Joe doesn't like it and the risk (even though s&p is over time very good return) is there.
Paying off your mortgage predictable, guaranteed and feels like steady progress.

You can say "I'll be mortgage free in x years"
 
ChrisD. said:
Why the obsession with being mortgage free? Mortgages are super cheap debt, that £500 a month can make you decent money in a stocks and shares ISA or other investment. A mortgage free house is full of equity you can't touch unless you release it through some equity release scheme.
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I became mortgage free a few weeks back.

Having zero debt, I have more financial freedom and don't have have to worry about interest rates in my 40s and older.

Still paying a mortgage in your 50's.....?!?!?! Screw that!
 
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neocon said:
Thing about those jobs is that people in Romania can do them too.
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Been hearing that for years about jobs going to India and here we are.

Companies rather employ WFH staff in their own country due to less red tape, less legal issues and more trust with their own staff.

Try and get an WFH job based in America while working in another country. Extremely difficult, they all avoid it.
 
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A story.

When we bought this house (my 2nd, Mrs 3rd) in 2006 it was 405k. Expensive area, nice road, detached etc. We extended in 2008 which was 100k. Since 2006 we have that hanging over us, making sure we kept working at a quite high amount of pay. Sometimes it was pretty tough. We’ll be paid off in 6 years now. It’s 2.5k per month including the overpayments. For us, that money a month back for another 5 years before we retire invested wisely will be a real bonus. Pensions etc are already sorted, plus we have a house worth 1.2 maybe 900 once the faeces hits the fan. Retirement for us is not an age it’s being mortgage free, or just basically free do do what we want for less money. We can’t go on our planned european oddessy anymore but I’m sure we’ll work it out. Not sure what my point is but paying off the mortgage is a plan for some of us!
 
adam cool dude said:
If I was in your position I would seriously consider living in a Van to save up a deposit for a house.

Imagine 20 years ago that a first world country like UK would require people to live in vans just to get on the housing market. My monthly bills and mortgage are around 1k and I will be mortgage free by 40. There is nothing I lack that I would get down south. Most of my family have emigrated to U.S/Aus etc so I am not tied down to a certain place although I do have a few in the Cambridge area. I have 35 minutes to the beach plus everything is a couple of hours away. Be it Manchester or London.

I can imagine Brighton is quite nice though but sacrificing and working till you are dead just to live there must be a hard pill to swallow.
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Parking in Brighton might cost more than rent :D
 
Rai200 said:
Our rent, with bills is about £2,600 a month. £1,900 without.

If I wanted to buy somewhere like this, on our earnings I would need a £300-330,000 down payment. If I had a 10% down payment we would need to earn £120,000 between us minimum.
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I'd be doing whatever I could do find a way to be spending that £1900 on a mortgage instead of rent. Whatever sacrifices/changes in lifestyle/temporary changes in location needed. Good chance your hand will be forced anyway if you don't do something about it - if the property is really worth £600k I'd expect rent to be more like £3-3.5k.
 
EvilRob said:
I'd be doing whatever I could do find a way to be spending that £1900 on a mortgage instead of rent. Whatever sacrifices/changes in lifestyle/temporary changes in location needed. Good chance your hand will be forced anyway if you don't do something about it - if the property is really worth £600k I'd expect rent to be more like £3-3.5k.
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Just as a data point (maybe useless) but on a place valued at 1.2 the rental estimate is 3.5-4k per month so are you sure?
 
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I’ve never understood the obsession with property prices. It means nothing to me when I pay my mortgage other than I am house poor. It’s not like you can use it to buy food or anything else. I can understand falling prices being a problem where you get locked into negative equity but rising prices beyond inflation is just madness. It doesn’t happen just here but many places see properties too much as an investment rather than a home.
 
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delta0 said:
If you are going to sell but what if it is a home as it is for many.
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This does speak to my long held issue with calling it your property.

So is my car, so are my plates, so is my ludicrous trainer collection.

I can only LIVE in one of them. Only one of them protects me from the elements. I could live without all of them except one. That elevates it beyond property.
 
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delta0 said:
I’ve never understood the obsession with property prices. It means nothing to me when I pay my mortgage other than I am house poor.
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I think that's translated as "why do people who own the property they live in always want it to significantly increase in value"? If so, I agree. It's dumb and counter productive for the vast majority of people.
 
CapitalOne said:
A story.

When we bought this house (my 2nd, Mrs 3rd) in 2006 it was 405k. Expensive area, nice road, detached etc. We extended in 2008 which was 100k. Since 2006 we have that hanging over us, making sure we kept working at a quite high amount of pay. Sometimes it was pretty tough. We’ll be paid off in 6 years now. It’s 2.5k per month including the overpayments. For us, that money a month back for another 5 years before we retire invested wisely will be a real bonus. Pensions etc are already sorted, plus we have a house worth 1.2 maybe 900 once the faeces hits the fan. Retirement for us is not an age it’s being mortgage free, or just basically free do do what we want for less money. We can’t go on our planned european oddessy anymore but I’m sure we’ll work it out. Not sure what my point is but paying off the mortgage is a plan for some of us!
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delta0 said:
If you are going to sell but what if it is a home as it is for many.
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This is the reason many people (particularly the elderly) are happy house prices are rising, because when they retire and downsize their "equity" is worth much more.

Not directed at CapitalOne, but his £550k home is now worth 1.2 million. He could sell for 1.2million, downsize to a house thats worth £300k and have a tax free lump of cash of £900k.

All he had to do was live there for 17 years and he's "earnt" £650k for doing not much at all.
 
ci_newman said:
This is the reason many people (particularly the elderly) are happy house prices are rising, because when they retire and downsize their "equity" is worth much more.

Not directed at CapitalOne, but his £550k home is now worth 1.2 million. He could sell for 1.2million, downsize to a house thats worth £300k and have a tax free lump of cash of £900k.

All he had to do was live there for 17 years and he's "earnt" £650k for doing not much at all.
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It’s not about the prices when it comes to paying off the mortgage, it’s the freedom you get as a result plus the x amount a month you can now do something else with.
 
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