Property expert Sarah Beeny, architect Damion Burrows and designer Max McMurdo will meet individuals across the country who are self-building unconventional homes with one aim in mind – to be mortgage free.
The trio will be looking at these alternative ways of owning your own property in Channel 4's new series, How to Live Mortgage Free, this week. Here, Sarah talks about what we can expect...
Your new show is How to Live Mortgage Free - what is it all about?
Obviously with no money, you can't own a house. But if you have some assets, let's say you've saved up enough for a deposit, or you've got some capital in your home with a big mortgage, is there a way of living in proper low-cost housing? Is there a way of looking at things in a slightly different way, and instead of having a home that will cost you £300,000, can you do it for a tenth of that cost? Can you get a home for less money, so you don't have a massive mortgage?
And what is the answer?
It's all about finding slightly alternative ways of living. If you want to go the standard route where you live near Starbucks and the tube in a three bedroom Victorian terrace, you probably can't live mortgage free because you need more money for that. But a lot of people spend an awful lot of money on rent. If you can stop paying rent then you save an extraordinary amount of money.
What will we see on the show?
We have one girl on the show who pays £20,000-a-year in rent. She saved about £25,000, but that, as a deposit, was nowhere near enough to be able to buy a flat where she lived in London. So she ended up buying a barge for £168,000 and refurbishing it, and living on the water. There are a couple of people in the series living on the water. There are other places and other ways that you can live which are much lower cost, which either enable you to save up for a bigger deposit and a smaller mortgage, or you can just buy outright. We've got somebody else who's bought a double decker bus and turned it into a home, which is really cool. And there's another guy who's turned the back of a lorry into a home. He does live on a farm in Wales, so he's got the luxury of the fact that he can use his parents' land. Land is the biggest cost involved – if you've got a piece of land with planning permission, that's the biggest hurdle overcome.
One of the ways of doing that is to build on a brownfield site [land previously used for industrial or commercial purposes]. How do people go about finding such places?
Well, that's the key. You need to be a dog with a bone. This is not the easy path, which is why it's not the normal path. You have to hunt around. One of the things I've learned in housing is that the big wins go to the people who take the big risks. Brownfield sites are really interesting. It's an easier planning battle to get a home on a brownfield than a greenfield site, and you end up with a much cheaper property. Quite a lot of people in the series are selling their homes with a mortgage and buying a new home for a lot less money.
What was your favourite solution that someone came up with for going mortgage free?
The double decker bus is really cool, and the lorry too. Everyone knows you can build a home out of a shipping container, but the lorry was really interesting to me. It's mobile, which means you can take it with you in the future. It's not simple to move around, but you can move it. And if you use a container, it's difficult to put in the windows and doors because a lot of the structure is in the walls. But a lorry back is effectively a frame, and in-filling a frame is so easy, anyone could do it. My kids could do it. And you can fit it with any size of windows or doors. You need a low level of skill to turn a lorry back into a home, so I thought that was really clever.
Catch How to Live Mortgage Free on Wednesday 19 April at 8pm on Channel 4
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FAQs
It's all about finding slightly alternative ways of living. If you want to go the standard route where you live near Starbucks and the tube in a three bedroom Victorian terrace, you probably can't live mortgage free because you need more money for that. But a lot of people spend an awful lot of money on rent.
How to live mortgage free documentary? ›
Sarah Beeny meets people who've escaped mortgages quickly by using some clever and simple tricks. Annie turns an industrial brownfield site into a house. Sarah meets the creator of an affordable three-bed prefab. Sarah meets a couple hoping to build a free-floating home.
How to live without a mortgage or rent? ›
14 Ways to Live Rent-Free
- Teach English Abroad.
- Volunteer with Peace Corps or AmeriCorps.
- Become an Au Pair.
- Trade Services for Free Rent.
- Become a House Sitter.
- Become a Resident Assistant at Your College.
- Find a Job That Provides Housing.
Below are the five ways that we lived rent and mortgage free!
- Resident Advisors. Being a resident advisor is a great way to get your housing paid for while you're in college. ...
- Renting Out Empty Rooms. Have an empty room lying around in your house? ...
- Strategically Downsize. ...
- Granny Flats. ...
- Employer-Paid Housing.
Put your savings in an offset mortgage
The product works by linking a borrower's savings account with their mortgage. The savings are then used by the lender to offset the amount it charges you in interest. So if the loan is £200,000 and you have £10,000 in savings, you will only pay interest on £190,000.
What percentage of Americans live mortgage-free? ›
The share of US homes that are mortgage-free jumped 5 percentage points from 2012 to 2022, to a record just shy of 40%.
What is the home afford rule? ›
Key Takeaways. The general rule is that you can afford a mortgage that is 2x to 2.5x your gross income. Total monthly mortgage payments are typically made up of four components: principal, interest, taxes, and insurance (collectively known as PITI).
Where can I live when I have no money? ›
10 Best Places to Move With No Money
- Cattaraugus County, New York. Cattaraugus County offers cheap small-town amenities alongside beautiful natural scenery. ...
- Detroit, Michigan. ...
- Flint, Michigan. ...
- Gary, Indiana. ...
- Youngstown, Ohio. ...
- St. ...
- Camden, New Jersey. ...
- Philadelphia, Pennsylvania.
First and foremost, homeownership means that you are tied to a specific living situation whereas renting affords more freedom in retirement. Instead of spending your time worrying about mortgage payments and repairs, renting allows you to spend your time exactly how you want to spend it.
Is it smarter to rent or own a home? ›
Buying a house gives you ownership, privacy and home equity, but the expensive repairs, taxes, interest and insurance can really get you. Renting a home or apartment is lower maintenance and gives you more flexibility to move. But you may have to deal with rent increases, loud neighbors or a grumpy landlord.
Key Takeaways. Paying off your mortgage early could free up your cash for travel, retirement, or other long-term plans. Being mortgage-free may insulate you from losing your home if you run into financial difficulties.
At what age should you no longer have a mortgage? ›
O'Leary's Take on Paying Down Mortgages
According to him, your best chance for long-term financial success lies in getting out from under your mortgage by age 45.
How can I retire without a mortgage? ›
Here are four tips to help you retire without a mortgage.
- Make extra principal payments. ...
- Pay bi-weekly. ...
- Take advantage when interest rates are lower. ...
- Downsize your home.
Our attitude towards money was becoming continually less stressed as the mortgage was being paid off. Once your savings rate is above 50%, which often coincides with mortgage being paid off, then its much more relaxing financially as very little can now screw you over (except yourself!).
How do you feel when you pay off your mortgage? ›
Paying off your mortgage in full can bring with it a great sense of satisfaction, not to mention extra cash each month once the debt is cleared.
What is an unencumbered mortgage? ›
Essentially, it is the word we use for a property that has no mortgage to pay on it. That means there must be no loans, charges or restrictions in place. If you've completely paid off your mortgage, or you purchased it outright with cash, your property is unencumbered.
What is the best housing documentary? ›
Dispossession is the story of people fighting for their communities, of people who know the difference between a house and a home, and who believe that housing is a human right, not an expensive luxury.
Is it good to be mortgage free? ›
The benefits of paying off your mortgage
Being mortgage-free can make it easier to downsize in other ways – such as going part time – and usually makes it cheaper and easier to buy and sell your home. Generally, a smaller mortgage gives you greater freedom and security.
How to get a mortgage if you are poor? ›
FHA loans offer less strict qualification requirements, which can help low-income borrowers or home buyers with poor credit histories qualify for a mortgage. These loans are popular because they have lower credit score requirements, low down payment requirements and potentially lower closing costs.
Who presents my mortgage free home? ›
Amanda Lamb helps families who want to sell up and leave behind their monthly mortgage payments. She shows them different properties that each offer a new life, debt free.
