Mortgage Envy

Fresh from my break, which was lovely and very relaxing – thanks for your kind messages – , I have been struck down with a terrible case of the green-eyed monster.

A friend of mine I used to live with years ago and now only see occasionally as she’s very highflying and busy, got in touch. It was nice to hear from her, and the usual small talk ensued over email about work, family and troublesome other halves, etc. when amid the chitter-chatter she just happened to slip in that she and her fiancé had just paid their mortgage off….!!!

My delight in hearing from her quickly turned to abject envy in realising that from now on never again will she and her chap be burdened by mammoth payments to the mortgage man – our single biggest expense each month. That is – assuming they doesn’t buy another, bigger property at some point of course. Aaagghh!!! Just imagine the freedom of being completely mortgage or rent-free! Maybe some of you are lucky enough to be so, I don’t know. If so, maybe you could let me know how you achieved it! My friend’s fiancé is older than her and fairly well off, and they both earn a good wage, so that would have helped. But I also know that they both worked their socks off to raise the extra cash to pay the mortgage off. Yet, when I think of the money they will be saving each month it still turns me a shade close to olive.

We would be almost £1,000 a month better off if we were mortgage free. For years I’ve dreamed of writing a best seller that would set me up for life, or winning the lottery but these are just pipe dreams of course. And it doesn’t help that I don’t actually do the lottery!

On a more practical level, DJ and I have been considering paying a little extra a month towards the mortgage. Although it would be an added expense immediately, each paying £50 extra we would shave about four years off the mortgage and save nearly £20,000, according to an overpayment calculator. Our current mortgage allows us to make overpayments up to a certain amount a year, beyond which you are charged for. So it’s worth bearing in mind. So far I’ve been squirreling away any money I save into a savings account for a rainy day, but maybe I should be putting it to better use on the mortgage. The question is how long term your frugal game plan is. In the long run your mortgage is probably one of the biggest areas where you could save money by paying some of it off earlier. But many people struggle just to keep up with existing mortgage payments.

Apparently an offset mortgage would better suit me as self-employed worker too because the cash you put away to go towards the yearly tax bill can build up interest which can help pay the mortgage. And it might also be something worth doing to build up equity in the house in the current mortgage crisis.

Unfortunately I’ve just looked through our paperwork and realised our discounted mortgage runs out this year. Now is not exactly the best time to renew, is it?  Not exactly a frugal success!  Oh dear…

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3 Responses to Mortgage Envy

  1. Christine says:

    You\’ll find yourself having to give up some of the extras then when you come to find another deal – maybe weight watchers will have to go she says laughing. But seriously you can but hope that the garden does well for food this year to help stretch the cash. A second job perhaps in the evenings or at the weekends? Working all hours at as many jobs as possible is the way that people I know have paid off their mortgage early – or they have inherited a house or legacy which has been used to pay off the mortgage that they have.

  2. anne says:

    I am lucky to be one of those people who have paid off my mortgage but only because we
    bought our house 20 years ago.
    I cant imagine what it would it would be like to have to pay around £1000
    a month. 
    On the other hand, you have a house (lucky you)  a job (lucky you)
    A partner (lucky you) lots would say you have it all.
    Enjoy every moment, dont waste time being envious, its very negative.
    Pay over the odds on your mortgate what you can but dont work yourself into an early
    grave.  You have to have a reasobable life for goodness sake.
     

  3. piper says:

    Wow – it must be great to have paid off your mortgage but we do count ourselves very lucky indeed – no question about it. And I don\’t fancy working myself into a frenzy just to save a few years on the mortgage. You\’ve got to have some work life balance for God\’s sake!  The garden is shaping up nicely thanks Christine – we have to sort out some way of keeping the chickens off the veg patch though! And thankfully I\’m nearing my target weight now so once I feel happy that I\’ve changed my eating habits I can hopefully say goodbye to the Weightwatchers spend. Definitely been worth it though, whatever the stick I may have got!

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