We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Mortgage free in Forever Home :-)

Options
1579580582584585628

Comments

  • LadyWithAPlan
    LadyWithAPlan Posts: 3,744 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    Watty1 said:
    That should reassure you that the place was just a toxic environment.  Love Chloe tales and her recovery.
    Completely agree, but as you say you need time also to mull over and come to peace with what happened with that boss.

    You cant expect to know the full job from day one btw!

    DON'T BUY STUFF (from Frugalwoods)
    No seriously, just don’t buy things. 99% of our success with our savings rate is attributed to the fact that we don’t buy things... You can and should take advantage of discounts.... But at the end of the day, the only way to truly save money is to not buy stuff.    Money doesn’t walk out of your wallet on its own accord.
    https://forums.moneysavingexpert.com/discussion/6289577/future-proofing-my-life-deposit-saving-then-mfw-journey-in-under-13-years#latest
  • f0xh0les
    f0xh0les Posts: 7,614 Forumite
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Photogenic
    That is one for the clever-chops on the pension boards.   What a lovely surprise though! 
    And ... devil's advocate 👿 🤘 a lump sum would take the mortgage under £200k and save interest ....
    I suppose it all depends on how clever you have been with your other workplace pensions and when you are considering giving up on the world of paid work. 
    4/10/22One Year Mortgage Free Yay!
    NSTurtle # 55 🐢 🐢 🐢 🐢 🐢 🐢🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢🐢🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 🐢 No Turtle gets left behind.[/b]
    ******PROUD MEMBER OF THE TOFU EATING COALITION OF CHAOS !!!******
  • CCW007
    CCW007 Posts: 1,081 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    I believe you're a HRT payer; assuming you have to start accessing the income once you take the lump sum, I would leave it alone until you are a basic rate tax payer. 

    Good to have options though and I like f0xh0les framing of using the lump sum to make a huge dent in the mortgage when you do access it.
  • KajiKita
    KajiKita Posts: 7,612 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    CCW007 said:
    I believe you're a HRT payer; assuming you have to start accessing the income once you take the lump sum, I would leave it alone until you are a basic rate tax payer. 

    Good to have options though and I like f0xh0les framing of using the lump sum to make a huge dent in the mortgage when you do access it.
    Flipping good point! Thank you  :smile:

    KK
    As at 15.07.25:
    - When bought house £315,995 mortgage debt and end date at start = October 2039 - now £233,521
    - OPs to mortgage = £11,338 Interest saved £5225 to date
    Fixed rate 3.85% ends January 2030

    Read 40 books of target 52 in 2025, as @ 29th July
    Produce tracker: £243 of £300 in 2025

    Watch your thoughts, they become your words.
    Watch your words, they become your actions. 
    Watch your actions, they become your reality. 
  • redofromstart
    redofromstart Posts: 5,829 Forumite
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    Also worth asking questions of the fund itself, generally if you take defined benefit pensions 'early' there are reductions in the annual amount and any lump sum to reflect this.  Usually the later you take it, the more you will get.  For example in one scheme I know of, a 65 standard retirement scheme retiring ten years early can result in a 35% factor/deduction in the annual pension.  Both of my (sadly tiny) defined benefit schemes will let me model what I would get at 57 versus 65 for example, so at 65 it is £1,920 per annum, at 55 it would be £1,400.  

    There was a lot of speculation that the rules will change around lump sums but at the moment that lump would be tax free, but usually with a defined benefit you can't take the lump sum without triggering the annual salary.  
  • Brie
    Brie Posts: 14,733 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    agreeing with the others about holding off on taking your DB pension.  I mean you could recycle (all? some of?) the income back into a private pension but then you'll be losing some of the £ to fees.  And would make doing a self assessment really necessary to regain the tax deducted.  Of course the £35k lump would bring you to within spitting distance of £200k on your mortgage which would be delightful.  

    No - I'd say make a note of it on your big spreadsheet of money and take another look at it when you are hitting 60.  AND you've got enough on your plate right now and don't need something else to fuss over.  

    (blinking heck!  nearly 55!!  still just a kitten!!!)
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards.  If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board:  https://lemonfool.co.uk/financecalculators/soa.php

    Check your state pension on: Check your State Pension forecast - GOV.UK

    "Never retract, never explain, never apologise; get things done and let them howl.”  Nellie McClung
    ⭐️🏅😇
  • dawnybabes
    dawnybabes Posts: 3,338 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Fab, is that his vehicle ? 

    Does he go to the Yorkshire WW show, with the enactments ? We go every year 🤣
    Sealed pot challenge 822

    Jan - £176.66 :j
  • KajiKita
    KajiKita Posts: 7,612 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    Fab, is that his vehicle ? 

    Does he go to the Yorkshire WW show, with the enactments ? We go every year 🤣
    Yes, this is the one he restored in the early ‘90s 😊

     We are a loooong way south of Yorkshire so we’ve never been that far north with any of his vehicles, but we go to local shows 😊

    KK
    As at 15.07.25:
    - When bought house £315,995 mortgage debt and end date at start = October 2039 - now £233,521
    - OPs to mortgage = £11,338 Interest saved £5225 to date
    Fixed rate 3.85% ends January 2030

    Read 40 books of target 52 in 2025, as @ 29th July
    Produce tracker: £243 of £300 in 2025

    Watch your thoughts, they become your words.
    Watch your words, they become your actions. 
    Watch your actions, they become your reality. 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.