Mortgage free at last

Hello Friends,

Today, 1st September 2014, we made the last payment on our mortgage.  After all this time, I can’t quite believe we have got there.  We have managed to pay it off 5 years early and I feel like it’s a real achievement.

How have we managed this?  I guess we have been lucky but we’ve also made our own luck.  We bought the house at the bottom of the market after there had been a house price crash in the early 1990s.  It was a bit scary at the time as prices were still falling.  We had both owned houses before we got married, and although they had also dropped in value, we still had enough to put down a good sized deposit.  We bought the house on a mortgage based on one income only as we didn’t want to stretch ourselves with young children.

Before you ask, neither of us comes from a wealthy background.  I was the first person in my family to go to university. OH came from a similarly normal growing up in a 3 bedroom semi background.

We also bought when interest rates were higher.  As they fell, we continued to pay at the same rate, overpaying every month.

Things are very different right now.  Edie and Bee both say they can’t see how they will be able to buy a house.  I think they will – it might just take a bit longer.

Where do we go from here?  We’ve now got to learn how to have a bit more money.  It would be very easy to splash out, but we both want the option of cutting our hours if not retiring at 60, so we will be looking at how we can achieve this.

Have you paid off your mortgage?  If so, what did you do next?

Until next time, Tawney x

Comments

Mortgage free at last — 8 Comments

  1. What a lovely feeling – to be mortgage free. We have around another 6 years left to pay and although we aren’t currently in a position to pay off extra each month we should be within the next 18 months when we have finished paying off a business loan. I will add the amount we currently pay for the loan onto the mortgage payments which should reduce the term. It’s nice to know that we will be mortgage free in our early 50’s.

  2. Well done!!!! I always overpaid, even if it was only a little. The relief is great – especially now as managing on a shoestring is compulsory. Make sure you have a really good rainy day fund as a downpour is guaranteed in even a very well managed and planned lifexxx

  3. Hello Tawney, I have been following your blog for a while and haven’t commented before, but now I just want to say how happy I am for you and well done on your achievement. I paid off my mortgage seven years ago. Firstly, I overpaid my mortgage from day one. This made an enormous difference. Secondly, I moved house to an area of Scotland where house prices are much lower sold my almost-paid-off house in Central Scotland and thus became debt free. Since then I have continued to put money aside from my salary in order to accrue a rainy day fund. Additionally, my work pension is likely to be tiny as I haven’t contributed enough, and so I will need something for when I retire. I try to live as frugally as possible, and this seems to work for me, although unlike many people I have the luxury of being debt free plus having some savings. It has been a hard journey but well worth it. Well done to you, this must be a fantastic feeling and you should feel so proud of yourselves. Best wishes, Amanda

    • Thank you, Amanda, for your lovely comments – it is very encouraging to know there are others out there with similar goals and aiming to be or already debt free. Tawney x

  4. Well done you! What a great feeling it is. We did as you did, paid off the same as the rates came down, but we were missold an endowment mortgage and kept getting letters toward the end of its life saying there may not be funds enough to cover the shortfall.

    We scrimped enough to put money y to change part of the mortgage to a straight repayment one and paid extra several times. EVentually managed to pay it off when we retired , with part of OH’s lump sum. So many people caught in the same trap, we were financially ignorant as many people like us were – and these were the people we went to to ask advice for heaven’s sake!
    Anyway things are great now we have no huge chunk coming out of the money every month. I hope you are enjoying the feeling of relief!

    • It certainly is a relief. When we first bought it was very difficult NOT go get an endowment, and I know quite a few people who got caught out. I remember a building society manager telling me I didn’t know what I was talking about when I suggested a repayment mortgage rather than an endowment. Glad we stuck to our guns now.

  5. Hi, well done for paying off your mortgage. It must be a very satisfying feeling. I don’t blame you for wanting to be cautious still with your spending, but after all your effort to free yourselves of debt it will be nice to have a bit more free time to enjoy it.

    Having lived in London for over ten years we have a pretty large mortgage, although not anywhere near as large as young people buying houses now must have. I do feel for them as prices are so high, particularly here.

    We are just starting to regularly overpay our mortgage. We have paid off the odd lump sum in the past, but are now trying to shorten the life of it by paying double the amount each month. It’s good to see the balance going down more quickly. Maybe one day we’ll be in the same position as yourselves. I hope so anyway.

    Enjoy the fruits of your frugality and hard work.