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Paying off the mortgage, one brick at a time


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29 minutes ago, Oldun said:

Do you have the ownership deeds in your paws ? P.s. congrats on paying back the loan....

be a week or two for all the paperwork to be finalised, but confirmed everything's ok on the phone.

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16 minutes ago, DonkeyKong said:

Congrats @vand

Enjoy the freedom!

Cheers

DK

 

TBH I don't feel free!

As soon as the mortgage ends we have 1 month of breathing space and then little vand jnr is off to nursery at the princely sum of £1700/month, so out with one expense and in with another I'm afraid! 

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45 minutes ago, Oldun said:

Do you have the ownership deeds in your paws ? P.s. congrats on paying back the loan....

May I ask - is it still standard practice to have ownership of physical deeds to property? I fortunately cleared my mortgage couple years ago but told by Build Soc that they no longer provide physical copies of deeds - its all held electronically?

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45 minutes ago, vand said:

Done & dusted. Final payment made! TBH it has still to sink in.. I don't have any particular "weight off my shoulders" feeling. I guess I've been anticipating the day for a while now, so it just feels like another day in our long term plan.

 

Such an anticlimactic feeling. When I made final payment towards my mortgage at my local Halifax branch there was no well done or congrats but rather a question do you intend buy another property as we have another product we can sell you :). A week later I phone Halifax to confirm mortgage paid off and they sent confirmation letter in the post business as usual.

After mortgage paid off (wait between fortnight to a month) I would advise go to the Land Registry website and check on your deed no longer any restrictions that the lender would have placed when you have obtained the mortgage. Last thing want is years later if you were to sell or property / passed down to come across a discrepancy whereby the mortgage paid in full but the bank is sill holding a restriction because it could then cost solicitor fees to rectify.

https://eservices.landregistry.gov.uk/eservices/FindAProperty/view/QuickEnquiryInit.do?_ga=2.187518056.1124275005.1551695524-522915063.1548326404

You want to buy the Title register cost £3 direct from the Land Registry website.

 

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11 minutes ago, Phil100 said:

May I ask - is it still standard practice to have ownership of physical deeds to property? I fortunately cleared my mortgage couple years ago but told by Build Soc that they no longer provide physical copies of deeds - its all held electronically?

Deed held electronically by the land registry website only cost £3 to obtain the title deed PDF format.

https://eservices.landregistry.gov.uk/eservices/FindAProperty/view/QuickEnquiryInit.do?_ga=2.187518056.1124275005.1551695524-522915063.1548326404

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1 hour ago, vand said:

 

TBH I don't feel free!

As soon as the mortgage ends we have 1 month of breathing space and then little vand jnr is off to nursery at the princely sum of £1700/month, so out with one expense and in with another I'm afraid! 

That is crazy ! £1,700 a month......my kid is 4 tomorrow and has been in nursery since about 6 months old or so at £220 a month (includes lunch and all materials etc) 7:30am to 6pm with a small fee if longer is needed and open Mon-Fri with Sat pm if necessary. Only off national holidays and Sundays...and supposed to be going free from next October (until they start elementary school at 7). Granted we are not in the UK but £1,700 is just wicked....that puts (in effect) glorified babysitting at the same level or higher than a private school and I assume they have long holidays for summer etc ! Wicked. Absolutely disgraceful. How the hell is an average wage  modern family with kids supposed to work and get by with that nonsense....barmy

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4 minutes ago, Oldun said:

That is crazy ! £1,700 a month......my kid is 4 tomorrow and has been in nursery since 6 months old at £220 a month 7:30-6pm with a small fee if longer and Mon-Fri with Sat pm if necessary. Only off national holidays and Sundays...and supposed to be going free from October (until 7). Granted we are not in the UK but £1,700 is just wicked....that puts (in effect) babysitting at the same level or higher than a private school ! Wicked. Absolutely disgraceful.

 

Yeah, it's pretty much par for the course in London prices. As you say, it's crazy.  Its typically quoted that the all-in cost of rasing a child is around £200k, and I can well believe it! 

https://www.korukids.co.uk/blog/childcare-london/nursery-costs-across-london/

We were lucky enough to squeeze into the childcare voucher scheme which recoups about £110/month in taxes between our two incomes, but this scheme was closed to new entrants at the end of last year, so new parents now have it even worse.

 

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Incredible but fits in with a conversation I had with parents of a kid my kid was playing with in a park last summer in The UK. Just stunning. To be honest, that is a national disgrace. £1,700 a MONTH ? Gobsmacked, just utter madness.

 

Any sane government would make it a priority to set up and run nurseries at a reasonable rate otherwise what the hell are you paying taxes for ?

 

probably pensions of government workers promised way back and untouchable and the salaries and subsidies of Brussels fat cats etc....

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Police, Nurses, firemen, teachers  etc should get public childcare for free for starters.....these are the people that keep our society safe or try to. Seriously, what the hell is going on over there?

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34 minutes ago, vand said:

 

Yeah, it's pretty much par for the course in London prices. As you say, it's crazy.  Its typically quoted that the all-in cost of rasing a child is around £200k, and I can well believe it! 

https://www.korukids.co.uk/blog/childcare-london/nursery-costs-across-london/

We were lucky enough to squeeze into the childcare voucher scheme which recoups about £110/month in taxes between our two incomes, but this scheme was closed to new entrants at the end of last year, so new parents now have it even worse.

 

I'm so glad (financially speaking) my two are out of nursery now (youngest finished about summer 2017). At that time in Cambridge for full time nursery was about £1200 / month. We had an overlap of the 2 kids enrolled for about 8 months. (also only got 15 hours free at that time). I don't know how others do it with 2 and 3 kids in nursery at same time. 

It doesn't stop though, after school club, breakfast club, extra curricular groups. It's not made easy for 2x full time  working parents

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3 hours ago, vand said:

I don't have any particular "weight off my shoulders" feeling.

Well done on completing your journey.  Shame there was no euphoric feeling of achievement, was kinda looking forward to that when mine is paid of in the next year or two :D 

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Well done vand financial independence is one step closer. It is encouraging to see it done, 7 years is a fair effort!   

I feel a bit of your pain on the childcare, that is a sickening amount. I am lucky that my wife can work part time through the week and makes up hours working weekends, the odd extra day a month, saves a lot on childcare costs. We are aiming for 15 years paid off on a similar amount, only just started really, two years in and still on target :P

@Oldun I believe that taxes would have to go up to pay for 'free' childcare, which people working would have to carry - I guarantee we would be no better off. The people who don't work would be dropping their kids off every chance they get though trust me. Better to leave the market to it imo. I remember our similar discussions on this topic on another thread :)

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9 hours ago, Oldun said:

Police, Nurses, firemen, teachers  etc should get public childcare for free for starters.....these are the people that keep our society safe or try to. Seriously, what the hell is going on over there?

Don’t you think all workers should get free care? After all, private workforces fund public sectors.

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10 hours ago, Oldun said:

Incredible but fits in with a conversation I had with parents of a kid my kid was playing with in a park last summer in The UK. Just stunning. To be honest, that is a national disgrace. £1,700 a MONTH ? Gobsmacked, just utter madness.

 

Any sane government would make it a priority to set up and run nurseries at a reasonable rate otherwise what the hell are you paying taxes for ?

 

probably pensions of government workers promised way back and untouchable and the salaries and subsidies of Brussels fat cats etc....

Here you are. @Mcgrimes

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Has anyone done the numbers on investing in the stock market over the same time period as they have increased their  mortgage payments? Here in the states the average annualized return over say the last 15 years in the S&P 500 have been around 17%. Just curious

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7 minutes ago, Sal said:

Has anyone done the numbers on investing in the stock market over the same time period as they have increased their  mortgage payments? Here in the states the average annualized return over say the last 15 years in the S&P 500 have been around 17%. Just curious

This is one of the most hotly debated points in the FI community.

Ultimately there is not right/wrong as it's down to personal preference, hence why its called personal finance.

I WILL say that I think the numbers have stacked up much more in favour of property/mortgage in the UK as house prices have beaten the pants off the FTSE over the last 20 years, especially if you factor in a move or 2 up the property ladder over the course of 25 years, so you are more long on an asset that has outperformed the UK stock market. That situation may reverse over the next 20 years though. 

more https://financialmentor.com/investment-advice/pay-off-mortgage-early-or-invest/7478

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1 minute ago, vand said:

This is one of the most hotly debated points in the FI community.

Ultimately there is not right/wrong as it's down to personal preference, hence why its called personal finance.

I WILL say that I think the numbers have stacked up much more in favour of property/mortgage in the UK as house prices have beaten the pants off the FTSE over the last 20 years, especially if you factor in a move or 2 up the property ladder over the course of 25 years, so you are more long on an asset that has outperformed the UK stock market. That situation may reverse over the next 20 years though. 

more https://financialmentor.com/investment-advice/pay-off-mortgage-early-or-invest/7478

I am confused by your comment that "ultimately there is not right/wrong decision". Granted it would be in the rear veiw mirror but here in the states it would of been a no brainer to have been in the stock market the last ten years.

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Just now, Sal said:

I am confused by your comment that "ultimately there is not right/wrong decision". Granted it would be in the rear veiw mirror but here in the states it would of been a no brainer to have been in the stock market the last ten years.

It's not a simply a question of "does the stock market beat your mortgage interest rate %"
Maths is easy; anyone can do maths.

What is difficult is assessing your risk profile. Buying a house and taking on a mortage 3 or 4 times your income introduces leverage and that magnifies risk.

Stock market returns may beat the saving you can make by overpaying your mortgage on paper, but it can't account for the reduction in risk as you bring your leverage down. Suppose we have a huge recession and both the stock market and housing market tanks 50% over the next 12 months. I would argue that, all things being equal, it is the person with the fully paid off home who could confidently go out and buy stocks (or perhaps another property) at firesale prices, compared to the person who has been building their stock portfolio and still has a mortgage to worry about.

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