Paying house off early

[bluesince76]

Biggest debt you will ever have , you are paying huge interest on it , pay it off asap , huge weight off your shoulders and you can save the same amount each month instead, martin lewis always says get rid of your biggest debt first

But not the mortgage, he's talking about credit cards, pay day loans etc.

In pure economics terms and over a long enough timeframe, you're almost certainly going to be better off investing than paying off the mortgage, even at current mortgage rates. But pure economics ignores that we're human with feelings. I'd therefore say balance it - you don't either have to just pay it off or just invest, but for most people paying it off will make them feel a lot better.

Below is a view from an actual qualified financial planner to add to the decision.

 

[bluegirl74]

I pay as much as I can afford into my mortgage every month. But I'm careful not to breach my overpayment limits otherwise the penalties start to outweigh the benefits of making the extra payments.
Arguably I could earn more interest by saving any surplus cash but I love seeing the mortgage balance diminishing month on month and at this rate it'll be gone in 2 years when my current fix ends.
It's all about what's right for you though and everyone has different circumstances.

 

[BlueHammer85]

Only another 31 years for me.

 

[Corky]

But not the mortgage, he's talking about credit cards, pay day loans etc.

In pure economics terms and over a long enough timeframe, you're almost certainly going to be better off investing than paying off the mortgage, even at current mortgage rates. But pure economics ignores that we're human with feelings. I'd therefore say balance it - you don't either have to just pay it off or just invest, but for most people paying it off will make them feel a lot better.

Below is a view from an actual qualified financial planner to add to the decision.

He only really gets to the point in the last 20 seconds - you can do both. He wants people to invest and sign up to his courses to do so.

 

[diegoalv]

Paid mine off last year mate, biggest weight off your shoulders, unless you are chasing cash or the interest you earn can pay your monthly mortgage amount then get rid. I had people say go buy another and rent it out it will lay both mortgages etc, that’s until it goes tits up, I’ve always been cautious and now have zero debt and looking at interest rates thank fuck I did.

Exactly the same. Don't care about that interest. It feels amazing to be debt free!
We made a lot of research before taking the loan, checked detailed clearpath lending reviews and i knew beforehand that i not gonna wait couple of years to give it back. That would be a huge burden, which i honestly can't stand.

 

[MCFC Wirral]

I could either cash buy my place here or put a large deposit down and get a mortgage somewhere bigger in a better area. I chose to be mortgage free at 41.

It would’ve been my single handed largest bill each month so it just felt right to clear it first.

 

[bluesince76]

He only really gets to the point in the last 20 seconds - you can do both. He wants people to invest and sign up to his courses to do so.

He really doesn't, but he's been on YouTube for about 10 years so is probably allowed to try and make some money from it.

 

[bugsyblue]

I’d invest it all in crypto.

 

[Millwallawayveteran1988]

It's simple maths. If you can earn more in interest than you're paying to your mortgage provider per month keep your money in savings. I would guess that money is always going to be there so you can do it anyway if your circumstances change.

This makes sense but I’m guessing if no penalties for paying it off then the rate is probably relatively high currently as unlikely to be a fixed rate.

 

[paulchapo]

This makes sense but I’m guessing if no penalties for paying it off then the rate is probably relatively high currently as unlikely to be a fixed rate.

When interest rates for savings were almost zero there was no point in keeping them in the bank. It was a bit of a double edged sword though as mortgage rates were very low. Now both are high, typical.