to rent or buy smaller, may come out of work at 62

angeace

asking for a friend who works for small company that may not be in business more than another 8-10 years due to owner wanting to retire if he stays in good health, which will make my friend 61-63 with no job..
would it be better for him to sell house now worth 130000 and downsize try pay mortgage off quicker or keep house and sell when need to for cheaper house or then rent? guessing if he rents he will get help from government if out of work but searching for work
THE worry is age 61/63 at best,getting new job and currently has mortgage until 65,, so could have few years with no wage coming in and mortgage to pay., so would he be best sell nearer time of lose job,rent, pub money in bank or buy smaller cheaper house?
hes also registered partially sighted so may struggle to get new job
thanks

bexster1975

Hello

8-10 years is a long time. Can he not spend time in the meanwhile preparing for a few years with no/less income? He might be able to retrain in an area of interest, develop a skill or hobby. In terns if money, is it possible for him to save/pay more off the mortgage over the next ten years? If he only needs to reduce the mortgage by a couple of years he should use the overpayment calculator to see how much per month he'd need to overpay to finish the mortgage at 61 and 63.

Just initial thoughts

Bexster

beanielou

Could they maybe overpay meantime while they still have an income?
Every little helps.

pennystretcher

If your friend feels like he'd downsize anyhow no matter what the outcome, it might be the time to do it. If he has the need to have the place of the size where he is now, keep it, but OP where you can. (or let out a spare room etc to bring in extra income..)

ps housing market is difficult to predict, but if he sells at right time and the bubble bursts, he'd get a whole lot more for his money if he can rent for a while (or even better get a council flat/house to keep him going). Just something to be aware of now that IMHO housing markets seem to be a bit shaky..depends the area as well though, so keeping that in mind.