A sad day...time to sell
Discussion
So after a weekend of head fighting heart, I must regretfully say: head won. We've got the opportunity to pay a big chunk off our mortgage and as such need to release some capital. Time to say goodbye to my beloved 996 Carrera. I only hope she goes to a good home, wipe away the tears and write a good ad to do her justice.....but mark my words, I'll be back! A Porsche will grace my garage again! But for now? A £600 Subaru Forester beckons.
Trev450 said:
Sound decision. Your home has to take priority over a car even if it doen't exite as much.
Madness. Reminds me of a fella who used to work for me. Died in his armchair the day he paid his mortgage off.Life is for behaving if you want a long one, but your a long time dead.
OP In all seriousness, best of luck
Wozy68 said:
Trev450 said:
Sound decision. Your home has to take priority over a car even if it doen't exite as much.
Madness. Reminds me of a fella who used to work for me. Died in his armchair the day he paid his mortgage off.Life is for behaving if you want a long one, but your a long time dead.
OP In all seriousness, best of luck
Edited by Trev450 on Wednesday 15th January 14:34
Why pay off a mortgage at the moment? Interest rates are almost non-existent and house price inflation is more than paying off the piddly interest that you will be paying.
Mortgage yourself up to your nuts and buy a GT3, I say.
(Please note that the above is not sound financial advice.)
Mortgage yourself up to your nuts and buy a GT3, I say.
(Please note that the above is not sound financial advice.)
ORD said:
Why pay off a mortgage at the moment? Interest rates are almost non-existent and house price inflation is more than paying off the piddly interest that you will be paying.
Mortgage yourself up to your nuts and buy a GT3, I say.
(Please note that the above is not sound financial advice.)
Actually.. It probably isMortgage yourself up to your nuts and buy a GT3, I say.
(Please note that the above is not sound financial advice.)
Just rounding the numbers for simplicity's sake if you take a £1m mortgage over say 30 years on a straight repayment basis your monthly payments will be approx £5k per month based on current interest rates.
Lets say for arguments sake that year 6 in to your mortgage is today and you win the lottery and decide to pay this mortgage off now which is standing with a current settlement balance of approx £900,000 based on current interest rates.
Over 6 years the borrower would have paid back £900,000 lump sum and £360,000 in interest and capital payments to lender.
So over six years thats £1.26m back to the lender for borrowing £1m. In my book thats pretty expensive.
Always a good thing to pay your mortgage off if you can and if you ever get lump sums of cash to pay off large chunks of your mortgage as it has massive effect on your repayment profile. Over 30 years assuming interests rates stay low (which they won't) on the example above the borrower would have paid the lender back something in the region of circa £2.5m. This idea that money is cheap doesn't really hold up when you work out the real cost of borrowing over the life of a mortgage IMO.
If more individuals in the UK, Europe and US thought like the OP we would not be in the mess we are in with banks , negative equity, house repossessions etc. Haven't even hit the tip of the iceberg thats for our kids to face I'm afraid.
Lets say for arguments sake that year 6 in to your mortgage is today and you win the lottery and decide to pay this mortgage off now which is standing with a current settlement balance of approx £900,000 based on current interest rates.
Over 6 years the borrower would have paid back £900,000 lump sum and £360,000 in interest and capital payments to lender.
So over six years thats £1.26m back to the lender for borrowing £1m. In my book thats pretty expensive.
Always a good thing to pay your mortgage off if you can and if you ever get lump sums of cash to pay off large chunks of your mortgage as it has massive effect on your repayment profile. Over 30 years assuming interests rates stay low (which they won't) on the example above the borrower would have paid the lender back something in the region of circa £2.5m. This idea that money is cheap doesn't really hold up when you work out the real cost of borrowing over the life of a mortgage IMO.
If more individuals in the UK, Europe and US thought like the OP we would not be in the mess we are in with banks , negative equity, house repossessions etc. Haven't even hit the tip of the iceberg thats for our kids to face I'm afraid.
marky911 said:
swindorski said:
I might be able to help - I'm shopping now! PM me!
Wow! I'm sure T-bagger never thought this might happen when he started the thread. 
IMI A said:
Just rounding the numbers for simplicity's sake if you take a £1m mortgage over say 30 years on a straight repayment basis your monthly payments will be approx £5k per month based on current interest rates.
Lets say for arguments sake that year 6 in to your mortgage is today and you win the lottery and decide to pay this mortgage off now which is standing with a current settlement balance of approx £900,000 based on current interest rates.
Over 6 years the borrower would have paid back £900,000 lump sum and £360,000 in interest and capital payments to lender.
So over six years thats £1.26m back to the lender for borrowing £1m. In my book thats pretty expensive.
Always a good thing to pay your mortgage off if you can and if you ever get lump sums of cash to pay off large chunks of your mortgage as it has massive effect on your repayment profile. Over 30 years assuming interests rates stay low (which they won't) on the example above the borrower would have paid the lender back something in the region of circa £2.5m. This idea that money is cheap doesn't really hold up when you work out the real cost of borrowing over the life of a mortgage IMO.
If more individuals in the UK, Europe and US thought like the OP we would not be in the mess we are in with banks , negative equity, house repossessions etc. Haven't even hit the tip of the iceberg thats for our kids to face I'm afraid.
As much as I'd like to mortgage to the hilt and buy a Carrera GT, I agree with the post above.Lets say for arguments sake that year 6 in to your mortgage is today and you win the lottery and decide to pay this mortgage off now which is standing with a current settlement balance of approx £900,000 based on current interest rates.
Over 6 years the borrower would have paid back £900,000 lump sum and £360,000 in interest and capital payments to lender.
So over six years thats £1.26m back to the lender for borrowing £1m. In my book thats pretty expensive.
Always a good thing to pay your mortgage off if you can and if you ever get lump sums of cash to pay off large chunks of your mortgage as it has massive effect on your repayment profile. Over 30 years assuming interests rates stay low (which they won't) on the example above the borrower would have paid the lender back something in the region of circa £2.5m. This idea that money is cheap doesn't really hold up when you work out the real cost of borrowing over the life of a mortgage IMO.
If more individuals in the UK, Europe and US thought like the OP we would not be in the mess we are in with banks , negative equity, house repossessions etc. Haven't even hit the tip of the iceberg thats for our kids to face I'm afraid.
My mortgage is .26% above base and I've made it my mission for as long as I can remember to reduce my mortgage to nil as quickly as possible - with rates so low more of the payment each month reduces the capital rather than pay interest.
Long story short, I've still had my fair share of nice cars but paid off the thick end of a seven figure sum in under ten years and I'm now saving hoping for rates to rise
However.......
I had a close moment last October which left me on a drip for a week in hospital feeling really rather unwell and as I understand it, lucky the abscess didn't burst that was in my torso, that could well have been time out. Three weeks to recover and still not right, but on the mend.
I had thought prior to falling unwell I would look at a new car and I had placed the order, now having a new M5 sitting outside and very happy I am too.
So in short, of course it's good to be sensible and reduce debt, but you only live once and life needs to be a balance wherever and whenever possible.
It certainly wasn't my intention to drum up trade, but as you asked so nicely Swindorski, I've replied to your PM this eve! Never look a gift horse etc..
Thanks for the financial advice though guys, I've no doubt it's the right thing to do!
Thanks for the financial advice though guys, I've no doubt it's the right thing to do!
swindorski said:
If that was his aim he's letting himself down quite badly.... I PM'd him within minutes of his original post and still haven't heard anything back !!!!!
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