Should You Pay Off Your Mortgage Early? Pros and Cons Explained, 2023. Lara Joanna Jarvis.

I've just remortgaged for the next 3 years then done! I will be 48 years old then save and enjoy life fingers 🤞

Head says invest money in stocks and shares isa, heart says pay off mortgage. Probably invest for 5 years then use cash to pay off lump sum at the end of the fix.

I’m starting a new business to pay my mortgage off in next 12 months - then we intend to move in 3 years time. Forget the range rover or nice car my main aim is to buy the 600k house and move mortgage free - we’re 34 years old got our house at 27 - we done the house up and now we have 220k equity approx - we bought the worst house in best area and spent money doing it up what will pay dividends - we have no debt. Paid off our car Audi. I was very tempted to buy an new Audi but decided against it and to use money to start a new business that will pay the mortgage off

The idea of being mortgage free just sounds like pure bliss

General info that’s been around for years, but for peace of mind, for most pay off mortgage especially now with interest rates being so high. I don’t think you need a financial advisor, most are con men, basically sales men that aim to take a percentage of your pension pot. Think logically about it and decide for yourself what you need to do, that’s my advice :)

We originally took out a 2 year fixed for 25 years. After the 2 years we took out a 5 year fixed for 15 years. We are both now 27 and 31 years old with only 10 years left on our mortgage. Rather than overpaying we are cutting the term down each time we fix it :) glad we did it that way

Mortgage aka death pledge

Ask your mortgage company who created the credit for the mortgage??

Ask your mortgage company to have a true certified copy of the original credit agreement..

Mortgage is french for death pledge..
If you have a variable rate and you pay £1 every day and still make your monthly payments, that one pound stops the compound interest building up over the month and can potentially pay a 25 year mortgage off in 8 to 10 years..
Apparently anyway.. I'm not qualified to give legal advice. Look into it

I paid off a mortgage at 1.89 percent regret it now And will be paying off another mortgage in Nov at 3.05 which I won't regret then debt free

Hi Lara, I love your video's and watch them all the time. WOuld you be able to do one on buying a car and the best way to do it i.e. through bank loan, PCP, HCP? Thanks for the brilliant knowledge and advice

Make extra payments in the early years of the mortgage, because they're front-end loaded with interest. Taper down after the first five years, and then for the last five years, direct all extra cash into investments.

This is probably a really silly question but how do you go about making overpayments ?
We brought our house December 2022 with 5 years fixed price and it just goes out via direct debit so not sure if I can change the amount to be slightly higher?x

Thank you so much Lara! Great video-you have given me some points to really think about that I hadn't considered. Like you said, it is really tricky to know whether overpaying on the mortgage or investing is the best thing long term. I think for us, the scales are tipping towards overpaying as this would bring a level of peace and security to our lives (especially at the high interest rate we are now on!). Xx

We made as many overpayments as we could and once we realised we had enough emergency fund, we paid it off last year and know that any interest rate rises will benefit us and our savings.

We were lucky and opted for 5 year fixed when interest rates were low (now wish I’d taken out a longer term). We are putting savings into a higher interest savings account, at the end of the mortgage term depending on what the world is doing, will decide either to make an overpayment lump sum or invest it elsewhere. I think if mortgage rates are higher than savings just makes sense to overpay monthly.

Lara, thank you for the video. I paid off my first mortgage a couple of years ago within very short time. It was a wonderful moment not to have any debt. Any extra cash was going to the mortgage I was very disciplined. I am generally a minimalist, so it wasn't such a big deal for me. These days, we just built a house and another mortgage is involved. After we stand back on our feet, we plan to pay off on a regular basis again. I am generally a minimalist, so it wasn't such a big deal for me. For people, however, who want to have material joys in life and a lot of fun, this might be a challenge.

Hi Lara, after all changes on mortgage market maybe is a good time to open question, when is better to keep rent or buy own property. Thank you

We paid off our mortgage13 years earlier. We saved tons of money on interest. The best part is it gives us piece of mind. Because we have such a low cost of living. It took us 17 hears to pay off a 30 year mortgage

If you had the opportunity to buy a house completely outright would you? Or would you pay a very large deposit and have a small mortgage and then pay off all other debts as well (currently renters). TIA love you videos.

My mortage will be paid off early by almost 14 years as I pay no-weekly so I make an extra 2 payments per year. Aug 2024 is my date !

great info

I did a mixture I got my mortgage when the interest rate was very high,13% per cent in the 80s when it went down I kept the higher rate for a year and then reduced it, as a result, a 25 year mortgage was paid off in 20 years. My wages increased but my monthly payments were static. after 10 years I could invest and go on some long-haul holidays. and choose my own retirement date .

We got a mortgage over a year ago, when the interest rate was still great. We are prioritising overpayments at the moment and hoping we can pay it off in 10 years. This obviously will compromise the investments that we make elsewhere, we are sacrificing holidays, have no plans of changing car etc. Mathematically we know a high interest savings or stocks and share ISA would give us a slightly higher return. But this slightly higher return wouldn’t be life changing money. So for us it makes more sense the peace of mind of being mortgage free as soon as possible. We’re still quite young and if we’re able to pay off the mortgage in 10 years, we still have over 10 years before retirement to put money towards other investments.

We plan to make small overpayments from next year. We bought the house less than a year ago on a 5 year fix. Having a holiday and starting investing this year

I overpay my mortgage monthly. Only an extra £30 a month but it all adds up. I’ve done this for the last 5 years when my fixed rate was lower, so even though I’m now on a higher rate, it hasn’t affected my monthly payments much, so even the smallest amount a month can help for the future.

Definitely would clear the mortgage, I couldn’t wait to be mortgage free, the knowledge that you own the roof over your head is such a stress relief. Being mortgage and debt free is such a great feeling.

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