The Secret To Becoming Mortgage Free and Saving Thousands Of Pounds! | This Morning
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- เผยแพร่เมื่อ 1 เม.ย. 2024
- With interest rates reaching their highest in decades, the last few years have been especially hard for anyone with a mortgage. The dream of paying it off, and living mortgage free, is certainly alive - but research shows that more than one third of Brits think that's impossible before they retire. That's what Ken and Mary Okaroafor used to think too - until they uncovered the tricks that helped them clear their £380,000 debt in just 7 years. Now, the husband and wife consumer duo want to share how it's done - and more financial advice for families. They join us today with their book, and some unmissable tips.
Broadcast on 02/04/2024
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Well done Ken and Mary! Super proud of you guys! 🎉🎉😊🙌🏾
Thank you for having us on the show :)
Not seen Gervinho in a while
Thank you fantastic advice, well done to you both on becoming mortgage free. You are both clearly equally yoked with the same values and ethics. Power couple excellent to see ❤
Just starting our mortgage, and your advice is brilliant, thankyou both.
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
My husband's and I paid our mortgage off within three years! U have to live within your means n don't buy a ridiculously expensive house. We cdve got one that was much more and been approved but we didn't!
Side note- we were in our late twenties
We did too. Good feeling!
What was the point in getting a mortgage if you could pay it off in 3 years?
We are looking to do this for next year (compromise is leaving London)
How much was your house? How much is your income? For the vast majority of people, their whole income over the space of 3 years wouldn't even cover their mortgage capital loan amount never mind having to live off that money as well.
As if Alison and Dermot have mortgages!
Great to see this lovely couple sharing their experience and knowledge on national TV. ❤ their channel here on TH-cam.
Our mortgage was paid off in Feb we are 46&48 but our house was cheap and mortgage payment really low
Same. Paid ours off aged 43 and now have a £1m asset
Wild to see Humble Penny on day time TV now, I remember when they had 2k subs on YT 😂
Well done you two. The problem is most people would spend the £1000 a month on a big car. I paid my mortgage off on my 50th Birthday. I thought that was good going. I put money in interest free ISA,s. £240 a month for for twenty years. It turned into about £85,000. I also retired from the military that got me £47,000 8 years before that. But the brilliant investment was the ISA.
Just managed to pay off my student loan and was elated, can't wait to pay off the mortgage.
Provided the mortgage is affordable and you don't need to build equity to support a future upgrade then prioritise paying into a pension for the tax benefits (and possible employer contributions) as if invested correctly the money will grow at a similar rate or better than the mortgage interest rate. Then you can clear what's left of the inflation devalued mortgage balance when you retire early with the 25% tax free lump sum.
Why pay something off that'll be wiped in 30 years??
Good story, love this sort of information! It would be good to actually know how they enabled themselves to overpay on their mortgage. Ken mentioned you must have a plan, it would have been good to see a bit more of the plan (appriciate its in the book) not just 'dont buy designer handbags' for example.
His you tube video explains more ‘the humble penny’
It's all very well detailed in their book - Can't really expect them to detail their plans in a few minutes!
As any CPA will tell you…never let your outgoings be more than your incomings….you can be asset rich but cash poor….you have to want to work to earn money..
Well done to finish paying your mortgage early.
Its still better long term to first focus on wealth building by utilizing the tax breaks you get and employer contributions on a personal persion, then an ISA then over pay the mortgage this is our plan right now.
Great info.. thx!
Excellent
Years ago we paid a 12k chunk off of our mortgage and aside from the time saved, it also saved us the same amount in interest. That was the thing. Not the time, the interest saved.
I’n Australia you can pay mortgage off weekly, have an off set account, against Morgage live off credit card pay card off before monthly bill with money in off set account I asked about this here in Uk 30 years ago and they said yes can pay mortgage off weekly but we make repayment s monthly, Big Banks have had it sewn up here
Totally the wrong advice given in this video - these people don't even realise the fundamental mistake they made. There were likely better options available to them. In the UK there are significant tax advantages to overpaying into a pension (which if invested correctly should grow at a similar rate to the mortgage if not better) and then maybe using the 25% lump sum at early retirement to clear the mortgage. So provided the mortgage is affordable and you don't need to build equity for an upgrade then don't overpay it but let inflation erode it's value and make higher pension contributions. I could have been mortgage free in my 30s but would have been poorer for it. Consider the mortgage as some leverage to enhance the long term return on your capital.
Exactly this. If you are a high rate tax payer building wealth in your pension will always beat paying off a mortgage at a much lower APR than growth in investment funds.
@@sl0w_racer It would have been more interesting to have explored with them how they earned so much money that they had enough spare after tax to make £50k pa of overpayments. For the numbers involved this is not just being frugal. They are either high earners or they received a windfall inheritance etc - certainly not possible on just the average joe income especially if you have kids etc.
@alexk3948 it's pretty easy when you are on a big income. I max out my pension at £60k per year and my ISA too. But I don't overpay on my mortgage at 3.84% because my investments are generating me about £40k per year in growth plus dividends on top which vary
The point you make is valid but considers only positive outcome. Rate of growth can also be lower. Pensions and ISA’s are only better if everything happens perfect so it is not guaranteed return. Paying off mortgage early is guaranteed to save you money and make you debt free. Also house value most likely will increase. That being said, the best is to combine salary sacrifices with paying off mortgage early.
@girtsjermacans9877 Even if the rate of investment growth is lower (which seems unlikely over the long term as a diversified mix of equities tend to both grow with inflation and benefit from reinvested dividends) the tax advantages make it hard for pension contributions to underperform a mortgage rate. At the moment even my zero/low risk Cash ISAs and Money Market investments are returning a higher rate than my mortgage so it would be mad to overpay.
It seems that everyone in this country wants to pay off there mortgage, but loose out on all the memories you can make going away with your children when they’re young. You only live once make the most of it. Too many of my friends simply get a job, work hard to pay off their mortgage, then retire.
I think you’re right there is a balance. I used to be all about the OP but now I’ve taken a step back for now til the kids grow up. You can do both
why you should do a balance and if you can easily afford an extra 100-250 you should do it
So what is going to happen to the lazy equity in the property? As the saying goes, you cant eat equity. Smart money would have a balance thats controllable and using equity as a 2nd charge to buy more cashflowing assets.
I'm 40 years old and only got 1 year left until it's paid off
Any advice how to invest for my future?
Remortgage and get a mortgage on property
@@elliott256 buy to let mortgage??
Diverse portfolio
Invest the money into a good investment fund and enjoy some of it!
If in the UK then stop overpaying your mortgage (maybe even ask for some overpayments back) and prioritise pension contributions for the tax advantages. The money in a pension should long term grow at a similar or better rate as the mortgage.
It's incredible how much money you can save by paying off your mortgage early. I've been considering ways to accelerate our mortgage payments to save on interest in the long run.
That's a smart idea. Paying off the mortgage early not only reduces the total amount of interest paid but also frees up cash flow for other financial goals, like saving for retirement or education.
Amazing such motivation for people who are not thinking about this
There are other ways to finish off mortgage.
Stay with ur parents.
Save save save and buy it outright from the auction (always cheap at auction)
Alison said she had a morgage
Let’s work out the maths. Cost of living has rose by over 12%. Anyone in the real world knows food has doubled. So that proportion is 100%. Overall I think it’s about 20% all in. But i need to find something as simple as just £100 extra.
So If I need a pay rise of around 20% plus the extra £100 per month errr. No sorry. My employer said no. And maths says no. In fact I’m now earning less. But at least everyone in the show is mortgage free. Der is earning 600,000 a year from this show alone. We need to be more grateful.
Highest in decades nooo also its low rate and fair can’t be 1% for ever
Nonsense , you need to earn more money ! There is no special tricks here. Yes overpay when you can but if you can over pay, why not take a shorter term or different mortgage. 250k for 25yrs. You sacrificing quality of life and your pension here.
The hosts havnt got a clue what a mortgage is
imagine if they invested all that money what they could have now.
Big sacrifice
Instead of paying off your mortgage, take the equity out of your home (it's the cheapest large debt you can find) and invest that money. You will become financially free much more quickly and then have the time and life freedom to make choices about what you do.
The issue is that people buy liabilities rather than assets.
Lease your liabilities and buy assets and spend the money you earn from your assets.
The dream of being mortgage free is another tool that the banks and government use to keep the middle class from becoming rich.
Living montage free is such a financial trap to being poor.
Can you explain this a bit more please?
£380,000 over 7 years is over £54,000 a year, (4,500 a month) and that's without any interest added.... ridiculous story
It’s possible lol. Get your money up and stop whining.
imagine locking yourself in to a dying country
Wow
Mortgage free make mot much difference with the cost of gas and electricity plus council tax
Allison hasn’t paid off her mortgage. Course she hasn’t.
She's got a hairline like Gervinho 😂😂
The two presenters have obviously mortgage free with the income they earn!!!
Highly dangerous advice being spouted in this video! If you search TH-cam you will find most respected channels say it is better to overpay your PENSION/ISA than to overpay your mortgage. Mortgage rates may average e.g. 5%+ over 25 years but world stock markets have grown on average 10%+ pa over 25 years. Plus there is tax relief on pension contributions (you pay £100, the government adds £25 or more). Plus your employer might match your contributions up to a certain level e.g. you put in £50 and your employer adds another £50. After 10 years the money you overpay into your pension/ISA is likely to be far higher in value than the mortgage interest you would save by paying off your mortgage early. You could use your ISA, or if you have retired then take a 25% lump sum from your pension, to pay off your mortgage. After this, you would still have more pension/investments to retire on than someone who paid off their mortgage early.
I'm glad someone has commented this already, it's exactly what I was thinking throughout this video.
Not technically true. Yes initially if you invested for example 10 years against over paying your mortgage you would earn more money investing. However the caviat is that the investment would eat away at the remainder of the mortgage plus interest. So you are technically not better off. Also you are basing this on the assumption that the stock market would perform well. While likely its not a guarantee. A lot of people don't like debt hanging over their heads and the security of having a home you can't put a price on it. Whilst others prefer to invest. Its about finding what works for you.
I really depends on what risk you are willing to take. Some people after clearing the house debt would maybe take more risk and develop themselves professionally. Its not a one size fits all although I'm actually doing the investment approach
What if you get sick. And now loose your home. If you can pay your house off completely then invest is so much better.
The key thing is investing in WORLD stock markets. A single country market like the UK could have a poor 10 years. However, over any 15 year period in history world stock markets have always grown close to 10% per year on average as stronger countries will compensate for weaker ones.
Never pay mortgages off! It's a free loan. Use the money for investments instead.
I don’t disagree but it’s definitely not free
Yeh all very well if you can stay at home. Some have to move out at 18 pay rent bills etc live in the real world😂
I moved out when was 18, never got anything from anyone for free. Started with 0, rented for many years. Until I’ve done my own research, stopped listening to people and used my own brain and common sense and decided to get a property. Now I have a second property and plan to pay it off within 5 years max. You have to sit down, do research, listen to professionals not people that have no idea about finances, stop spending money on things you don’t need and work. If you unlucky to be born in poor family like me you have to work if you want to own a property.
@@dagaha3131 Well said and all 👍 true.
Just buy bitcoin and get out of the problems of inflation. It’s easy