what would you do? was mf...not now.

ceecee1

Hello all, I would like your opinions please. Not sure what to do......a bit of background.
When I divorced about 20 years ago we were heavily in debt and as he did a disappearing act I paid off all the outstanding amounts myself.
Managed to hang onto the house and bought him out. I still remember the day when I could say that everything in the house was mine and I didn't owe anything to anybody......

Anyway, the area that my house was in was becoming run down. My mum hit 80 years old and wanted me nearer. So I part ex'd into a new house.

My dilemma is that from being someone with no debts and no mortgage I now owe £80k......people keep telling me not to worry about it - it will all be fine !

I am torn between throwing every spare penny at the mortgage to pay it off...but then again - what for?
I am 54, live on my own, no kids, nobody to leave a great inheritance too....in 15 years when I am due to fully repay this interest only mortgage I will be 68 years old. Probably due for a little sheltered flat !!

I have £65k eqiuity in the property. The majority of my friends say that I am thinking of the mortgage as a debt and not the house as an asset.

Just want your input really - in my position would you still do holidays and not worry about things and just overpay a little to give me enough to still enjoy myself OR would you put everything you could into paying all the money back at the end of the 15 years ...

My other worry is that if I become ill (not planning on it) whether I could pay the mortgage......should I save the money or get some sort of insurance.

I dont know what to do for the best

Sepa74

Hi CeeCee, if it is any comfort, your dilemma is exactly the same as nearly everyone else's on the board!

Perhaps you feel yours more acutely because you spent so long struggling to become debt free from debts that weren't yours? That is amazing, by the way, I really admire you!

I think most of us feel that it's about finding a happy medium. We want to pay off the mortgage for the security it brings, but also know that we have to have a life too!

Given that you are in your 50s with an interest only mortgage, I think it is probably an excellent time to speak to a Financial Advisor. If life expectancy is anything to go by, you will probably live well into your 70s and probably into your 80s, so there is a long period of retirement you will have to fund, and I don't think any of us seriously expect to be able to rely on the government these days (and let's face it, why should we? I don't really want my taxes to fund anything other than a safety net for those who are less fortunate than I - most people can and should look after themselves).

But anyway... you still have time to save for a better income in retirement, and you also need to think about what happens if you do start suffering ill health. You also need to make sure you can pay off the capital when the mortgage is due - you certainly can't rely on rising house prices to do it for you!

So in short, my advice (for what it's worth) is this.... see an Independent Financial Advisor to go through EVERY aspect of your finances - retirement, savings, mortgage, insurances - and make sure you are on track to be financially secure for the rest of your life (which, modern medicine being the marvel that it is, could be a long one!).

Then start up a diary and join us in our MF journeys by watching the pennies and throwing all your small savings on the mortgage, while still saving so you can enjoy a decent life - have a holiday every year, just not an extravagant one - go to the theatre or the movies once a month rather than every week, that sort of thing, and watch that mortgage come doooooowwwwwnnnnn

Good luck with everything!

ceecee1

Hi Sepa - I think you are right - I took great pride in not having any debts and its hard to think of having to watch the pennies again.

I think I need to find a happy medium, not spending on loads of stuff that I dont need (which is what I used to do) but look to spending my money on enjoying myself but not going overboard.

Even if I dont pay off all the house in 15years and have to sell to go into my sheltered flat - will have more money to spend then on going around the world !!!