Mortgage in retirement?

peterg1965

kidmugsy wrote: »

What are her annual earnings? Is she still contributing to her NHS pension?

She stills works for the NHS, albeit on a permanent 4/5 full time contract, so, yes still contributing to the scheme. Her salary last year was £22500 and she has 20 years full time equivalent NHS pension accrued thus far. So £10k in a SIPP this year leaves her well within her AA.

Thrugelmir wrote: »

Where do you expect to obtain a consistant 7% rate from ?

I am not necessarily expecting a consistent 7% guaranteed return, it's a half decent rule of thumb estmate though depending on how the market performs and how we decide to invest. it will no doubt be an inconsistent return but likely to outperform cash.

MARTYM8` wrote: »

Clearly it depends on your circumstances and the cost of the mortgage

If you have a generous final salary pension - fine.

If you expect to rely on the state pension - probably not.

Plenty of lenders are happy for those in their 70s or 80s to have mortgages - albeit presumably relatively small sums.

Agreed, as I said we will have about £45k of index linked final salary pensions between us before SIPPs come into it, so that gives us options. I will discuss in more detail with my current provider (Nationwide) at the appropriate time.