Mortgaged until death

[Gibbon]

Was at a funeral last week, chap just paid of his mortgage at 52, not had a holiday in 3 years to do so, heart attack and long time deed

Explain the benefits of not having a mortgage ?


Sent from my iPhone using Contractor UK Forum

Strange I'm 52 and paid my mortgage off last year and I haven't had a heart attack, must be the exception, all the extra disposable income is getting me down now though, I'm getting sick of 5* hotels and I'm missing those 3* dives I used to use whilst overpaying the mortgage.

[DealorNoDeal]

We paid our mortgage off 20 years ago when interest rates were a lot higher*.

It made a lot more sense then but I'd still prefer to be mortgage free even though (interest only) mortgages are dirt cheap now.

I wouldn't want to go into retirement saddled with a whopping mortgage.

1. What if interest rates do go up? Even an extra couple of % could be crippling.
2. Would you still be able to remortgage, to take advantage of a lower rate, if you are on a reduced income?
3. If remortgaging is difficult, then maybe it would be harder to move house?

*I was going to say normal but feck knows what normal is anymore.

[Whorty]

Was at a funeral last week, chap just paid of his mortgage at 52, not had a holiday in 3 years to do so, heart attack and long time deed

Explain the benefits of not having a mortgage ?


Sent from my iPhone using Contractor UK Forum

Paid mine off late 30's. Still alive 10 years later. I'm seeing big benefits

[NotAllThere]

So Sweden recently reduced their max mortgage term to 105 years...

Telegraph: Sweden cuts maximum mortgage term to 105 years (the average is 140)

In Switzerland you can keep you mortgage going so long as your income allows, right up to death. If your heirs can pay the mortgage, then they can just keep going. It's unwise to pay off all your mortgage, since there is tax relief on interests payments, imputed rent tax, and wealth tax. Better to use the money elsewhere.

[DoctorStrangelove]

imputed rent tax

Which explains the Schedule A Income Tax receipts I found in my grandfather's records, a man with no income paying tax.

A neat trick if you can achieve it.

He died shortly before Selwyn Lloyd abolished Schedule A in 1963.

[CryingSheep]

In Switzerland you can keep you mortgage going so long as your income allows, right up to death. If your heirs can pay the mortgage, then they can just keep going. It's unwise to pay off all your mortgage, since there is tax relief on interests payments, imputed rent tax, and wealth tax. Better to use the money elsewhere.

Precisely this! Plus everytime you remortage (with extra borrow) that extra is tax free money in your pocket!

[xoggoth]

I'm getting sick of 5* hotels and I'm missing those 3* dives

Paid my mortage off decades ago but was too much of a cheapskate to even do 3* when I was still contracting.