Being a frequent saver I will, if all goes according to plan, be able to pay off my mortgage in 10 months time therefore pay it off 16 years early. However my heart is saying get a new STi8 with all the trimmings i.e. PPP, 18" wheels etc..

My other half says get the STi and pay a bit off the mortgage instead, but the appeal of not having any mortgage payments is holding me back. What would you do, blow the cash on an STi or keep the MY01 WRX, pay of the mortgage and wait for a couple of years until I can buy a replacement.

 

Pay off the mortgage and have more disposable income for the rest of your life....

Nice choice to be able to make

Matt

 

I thought IFA's etc always tell people not to pay there mortgage off, not sure why, but thats what i heard?

 

Mortgage no question

 

If you need to ask you are not worthy of either.

 

scoob.

who knows what will happen in 10 months - live life now not tomorrow.

 

well
given the depreciation of new cars....you would be mad to buy a new car instead of paying the mortgage....
Will be worth naff all in comparison after a short while...

just my 50 cents worth.

 

Pay the Mortgage, if you've managed to save that much money whilst making mortgage payments then think how much you can save once the mortgage is done, you wont have any worries and more disposable income per month!

Save now to enjoy later! Something which I unfortunately havent done! I blew my house deposit on a 14k impreza a year ago and although the car is nice, it is no substitute for my own place!

 

Pay your Mortgage off. Think of all that interest you save over the years.

 

House everytime, mines paid for but I have to drive a MK2 Golf GTI, plus the house has gone up by 250 grand since I bought it, doubt a car will go up that much.....

 

Paid are mortgage off 20 years early saveing 125k over the next 20 years that's £700 a month in repayments thats all mine, o! and hers.

 

hmm, 125k on an impreza would make it just about the fastest impreza on the planet wouldnt it?

 

in 20yrs time 125k will be what an impreza costs.




+ppp of course.

 

Pay off the mortgage, debt free life is very nice, believe me!!

 

I plan to die with (debts=estate) - you can't take it with you.

Get the car!

 

the car the car the the car the car the car the car, maybe get the car?? My house is paid for and for this I am happy but I live in my house, I like my house, it is nice and stable and a place to relax and read and eat and sleep and then I have a scoob, a place to do the opposite of all these things, a place to live and drive and feel alive and love and smile and be very happy, get the car, pay for the house next year, it will be worth it.

 

Pay the mortage off and save up for an STI9

Dave.

 

head says house, heart says 22b(if youre gonna do it, do it in style
martin
martin

 

The best advice would be to keep a very small mortgage on the house to maintain an active credit rating. A friend of mine, who is not short of money, paid off his mortgage early. A few years later, his financial circumstances changed and he needed a temporary £20K loan. You would not believe the amount of trouble he had just because he didn't have a mortgage!! The financial advisor claimed that even a £10K mortgage would have been enough to sort a £20K loan???!! It's something to do with making regular monthly payments regardless of value!

By the way, I'm not a Financial Advisor, I'm thick...!!

Personally I would buy the car...

Wuss.

 

can't be avery big mortgage - what £30k?

That's buttons these days.

Get the car

 

It used to pay to keep a mortgage because of the MIRAS tax relief on it, but they have now abolished this.

Get the car mate and pay a bit off the mortgage.

True the car will depreciate but if you want it you'll get it eventually, so have to swallow a depreciation at some point.

Trouble is if you love cars its an expensive hobby, believe me I know having owned an STi 7. now there's depreciation.

Jas

 

No-one has commented on your age yet! If your young then get the car (ie plenty of time to pay off a mortgage) If your of more senior years then pay off the mortgage.

 

Assuming we are talking about an amount of circa 25k, ie cost of car, buy the car. A 25k mortgage hardly costs a lot does it?

Interest rates are the lowest they have been for 40 years. What the hell is the point in saving a small anount per month and having no mortgage? Have the car if that's what you want. If you dont, every time you see one you will think, "great car, but I owe 25k less so am saving a massive £80 per month!!" ( or whatever it is). I doubt it.

As soon as you start talking about a car in the same sentence as property, ie comparing what the values will do, you are absolutely foobarred.

Property goes up in value, cars go down in value. DONT compare.

Just my tuppence

 

why not pay off the morgage and get PPP on you WRX, make the car
feel new/faster...keep warranty.....all sensible stuff

wish I had the same decision...good on ya mate

 

You are obviously going to buy the car and you know it! To reassure you, I have done this and dont regret it one little bit. In my case, I have a flexible mortgage which allows me to make lump payments whenever I want with no penalty. So basically I make sure that I keep paying off lumps so that my car is always worth more than my mortgage. That way I always have the option of selling the car if necessary to pay off the mortgage in full. As has been said, with the low interest rates it is a cheap way of financing a car (so long as you do pay it off early) and you are in the nice position of having a low mortgage and a nice car.

Steve

 

get the car! , my repayments on my sti8 are £110 more than my morgage a month! (and i have a £72K morgage)

 

Do both - use 50% of your savings to pay into the mortgage and stick the rest down on an 8. That way you'll have reduced outgoings as well as yer dream motor. As has been previously mentioned, people without mortgages struggle to get other finance, so it may well work in your favour if you keep your mortgage, albeit a reduced one.

 

You'd be crazy not to pay off the mortgage, given the fact that interests rates are low, even still over 16 years the amount you will of paid back in interest, you could of had car for it. Interests rates won't stay low forever.
With the extra disposable income you'd have, it would be better getting a flexible loan for the car and paying it back in the shortest time you could comfortably afford, you'll pay less interest this way.
I don't think there would be many FA around who tell you to buy the car. The people who tell you that you might get knocked down tomorrow etc and die, so live life to full, that maybe the so, but statistically you'll probably live to a decent age like most people and you will be more financially comfortable in the years to come having got rid of the milestone around your neck. Another point to add, once you pay off the house, its yours and not the banks/building society's, its then a huge security and something to fall back on in any situation or circumstance.

 

If interest rates are so low, now is the best time to consider NOT paying off your mortgage!!

As I said earlier, comparing assets, car and house, in same sentence, is foolish.

Of course an FA would not advise you to buy the car. I'm f**ked if I'd ask an FA whether I can buy a car!! Where would that end? "Mr FA, where do you think I can afford to go on holiday this summer?"

 

sti8 m8


my house is paid for, u only spend the money on something else