Life After the Mortgage

carboot_karaoke

solidpro said:

carboot_karaoke said: It's a fully flexible product allowing you to withdraw up to our original mortgage if necessary.

You have a mortgage that lets you easily just take a huge loan at whatever the base rate is +.79%? So for example if you needed a quick £50k you can just get it? I've never heard of that - I thought you had to remortgage.

Yes that's right !! Also includes no charges for overpayments or withdrawals the product no longer exists.  Hence I'm holding onto it until the end 😄

Cus

You have paid off your mortgage which is major result. You should go on holiday and forget about this topic, and then pick up this thread when you return..

fimacdoodle

You are in a good position, so safe is increase pension payments - risk is BTL if you have not been involved before. 
Take time to enjoy and decide !

carboot_karaoke

Cus said:

You have paid off your mortgage which is major result. You should go on holiday and forget about this topic, and then pick up this thread when you return..

Your probably right 😁. 

carboot_karaoke

fimacdoodle said:

You are in a good position, so safe is increase pension payments - risk is BTL if you have not been involved before. 
Take time to enjoy and decide !

Thank you for the sound advice 😊

daveyjp

solidpro said:

carboot_karaoke said: It's a fully flexible product allowing you to withdraw up to our original mortgage if necessary.

You have a mortgage that lets you easily just take a huge loan at whatever the base rate is +.79%? So for example if you needed a quick £50k you can just get it? I've never heard of that - I thought you had to remortgage.

My last mortgage was fully flexible at 0.25% above base, it worked like a credit line in that you had a limit which was a LTV figure of about 80%.

At any time it was possible to draw down cash to the credit limit and the monthly payments were increased to ensure the mortgage was paid off by the due date.

Alternatively you could overpay thereby saving on interest, but could withdraw any overpayments.

Sg28

carboot_karaoke said:

This weekend, thanks to some forumites  l discovered we are in a position to pay off our mortgage hurray!!

But this now leaves me the question of what we should now do with our income in the short/long term.

We are mid 40's modest earners 22k /18k respectively and this is unlikely to change significantly in the coming years. 

With the mortgage cleared we are left with 15k in an investment bond - which l can withdraw and 12k in a 1 year fixed Isa @ 4% maturing in January. 

We will have about £600 extra available each month although, l must admit after 15+ years of living frugally l would like a nice family holiday as a little indulgence .

We also don't have much in the way of a pension just a few 1000 which l know needs addressing!! Although once we have an empty nest we do plan a significant downsize which should raise 100K .

Any suggestions ?? For example would you cash in the investment bond and replace with a savings account? I feel like a savings account is more reliable but the bond has produced a good return.

We have also talked about investing in a BTL for when our eldest leaves home. Probably 4+ years away.  

I know future planning (ie Pension ) is important but would like easy access to some funds for emergencies etc. 

Id share that 600 between pensions, savings and spending on nice things. 

Maybe 200/200/200

solidpro

carboot_karaoke said:

Yes that's right !! Also includes no charges for overpayments or withdrawals the product no longer exists.  Hence I'm holding onto it until the end 😄

Does it have a particular name?

solidpro

fimacdoodle said:

Take time to enjoy and decide !

Yes, I agree. If you want a holiday and a slush fund, do that first and take a good investing book with you. This one, for example (just happens to be the last one I was recommended on here, and read). UK,post pandemic, post-brexit -centric

carboot_karaoke

solidpro said:

carboot_karaoke said:

Yes that's right !! Also includes no charges for overpayments or withdrawals the product no longer exists.  Hence I'm holding onto it until the end 😄

Does it have a particular name?

Its a FD offset mortgage...not sure if it has a different name