What to do..

Iamdebtfree

Me - 49. Partner - 52. No kids.

I've just cleared all of my debts - spent 30 to 49 heavily in debt - am now completely debt free. Managed it all without DMPs or bankruptcies or anything of the kind. We're currently renting.

My salary's 28K a year; partner is on benefits - this to my knowledge does not count as income.

Recently got a decent inheritance - almost exactly my yearly salary. I have a private pension where I have around £16K but of course can't touch it until I'm 55.

Best case scenario - £28 x 4 - just over £110K. That is, if anyone was even prepared to give me any kind of a mortgage. You won't get a shed for that amount here in London.. If we did, by some miracle, get a mortgage for what we need to buy... we're way too old to ever pay it off in our life time. Additionally, having spent my entire adult life in debt.. I'm loath to yet again saddle myself with massive debt for the rest of my life, even though it's 'good' debt.


So... renting it it, for the rest of our lives? Looks like there is no choice. Part of me is glad - I don't ever want to owe any bank a pence as long as I live. Part of me is thinking, renting is for the young and for the poor and is the opposite of 'wise' and 'secure'...

Thoughts?

spadoosh

Youd get a nice 3 bed semi round here for that money. (preston)

Whilst you might get a paycut from your job, supermarket workers round hear earn at least £16.5k working full time, which should still get you a decent house for about £100k.

And its about £2.80 a pint locally. And we have lots of trees and clean fresh air. You can get back to london in 2-3 hours on the pendolino.

Doesnt look like youre going to buy in London. If you want to buy youll have to move elsewhere, if youre not going to move elsewhere, youre not going to buy.

Iamdebtfree

Thank you... thought so... can't leave my job though. 10 years.. very good secure position with a huge global company. Not too badly paid for something based way out of central London......plus partner would rather die than leave his beloved London Town............

spadoosh

I struggle to think its a financially sensible option.

Youll know the sums and figures better than i do but im kind of expecting you to be cutting back quite a bit in retirement? Have you got a plan for rent in your retirement?

Mortgage_Adviser

Well this all depends on a number of circumstances.
For example I know a lender who in the righnt circumstances can lend up to x6 annual income and accept certain benefits.


The deposit needs to be at least 15% though



They can also go in to the age past 70 if the jobs are non manual.


So if your partner gets say 15k in acceptable benefit income you may be able to get up to £258,000.



So my advice is for you to have a chat with a decent broker as the older you get the more the maximum amount you can potentially borrow reduces.

Iamdebtfree

Thank you to all who responded. To be perfectly honest .. the entire subject makes my already bad depression and anxiety sky-rocket. The idea of being in debt to the tune of MINIMUM a quarter of a million for the rest of my life - even if it's good debt - is at present completely unfathomable. I have several 'life-long renter' friends who having reached retirement age got themselves settled in small 'retirement/low rent' flats in my area- and that's my plan too. Another option would be to buy a very cheap property up north and move there on retirement. There are also retirement flats all around my area.. I just do not want to commit to a ginormous London mortgage and then realise that I'd made a mistake. There's about a dozen huge £1 million + houses for sale in my road alone - nothing's selling.. people are stuck trying to sell for years.

We have no kids... it's just us. No kids, no debts. Some assets. Private pension. I'll live day by day and hope for the best.God knows how long we've all got left on this planet anyway. * sticks head in sand*