Mortgage, DMP and Looming Retirement

tigergambit

kimwp said:

I think once a mortgage is small (under £40k), then it's unlikely that you can shop around and get a deal with other providers, but you should be able to fix with your current provider.

Yes, on reflection I think I may have the wrong end of the stick here. I will speak to my provider. Thanks.

fatbelly said:

Thinking about what you've been saying, a decent redundancy package, some time in the next few years, could be just what you need....

Haha.Yes. Unfortunately in that sense I have only been a CS for 7 years. Best job I've ever had - interesting, very little pressure, great conditions and only 37 hours a week. There's just no way younger me would have been able to keep my mouth shut about all the waste and poor management though, so probably just as well I didn't join earlier!

I'd miss it and I think it's highly unlikely but you're right. I'll stop worrying about that.

kimwp

If I was in debt, I'd be optimising the air BnB stream of income - what are the costs involved?

tigergambit

kimwp said:

I think once a mortgage is small (under £40k), then it's unlikely that you can shop around and get a deal with other providers, but you should be able to fix with your current provider.

YES, thank you so much for that! I have spoken to my lender who confirmed that I can re-fix if I owe more than £10k. (Whether that's worthwhile will depend on charges, but it's very reassuring).

Thank you for your very supportive comments. It looks like my initial post is a strategy which will hold up. Once retired we won't be in a position to be able to pay much so the creditors can wait until we die and claim off our estate. All that time inflation will be eating away at the value of the debt and as we are never going to go down the credit road again that's just dandy!

AirBnB does work well if you have the right home in the right area. We have a very minimal lifestyle (no clutter at all) and can lock off our bedroom so we don't find it a hardship. We aren't sentimental about posessions so are relaxed about "strangers" staying. Not for everyone, I know, and it's a mindset, but tbh everyone who has stayed with us has left the place spotless. It's great to have a weekend away knowing someone else has paid!

tigergambit

I have had PRA calling me first thing every morning and leaving messages so I took one of the calls. Standard how are things call. I admitted to having had a pay rise for the first time in three years but explained that had gone on higher mortgage payments, council tax and living costs. Very nice lady then asked me about previous settlement offer of 23%. Was it still available? Yes it was. Off she went (supposedly) and came back with an offer of 33%. (Last one was 80%).  I politely declined as the money was being given by family and that was all I had.

So we chatted a bit more about cost of living etc and I'm wondering what is going on and 5 minutes later her "manager just walked past" and off she went again. Came back and offered to settle at the 23%  I offered a year and a  bit ago. I agreed subject to them putting it in writing that this wouldn't be sold on and payment was final and so on. They did not ask for any further SOA or proof of income.

A week later I hadn't heard back and so called to chase it as the settlement figure was on the website. I received the email next day. Success!

Just thought I'd let people know as I am aware PRA have a reputation for not discounting.

Just Tesco still holding out and Sainsbury's who appear to have mislaid the account.

enthusiasticsaver

In your situation I would do the same.  Focus on  the mortgage as keeping a roof over your head is the most important thing and then ask for the unsecured debt  to be written off once you are retired on SPs only on the grounds your income will not improve.  In the meantime use any spare income to hammer the mortgage.