Debt Free at 63... What next?... [Equity release on mortgage free house 2025]

vampirotoothus

Hi, also don't book package hols, check if you can do it cheaper by buying the flights / accom / transfers separately.
I agree with not buying a 2nd place, why limit yourself to one location all the time (also something else to worry about when you are not there, eg security / broken pipes etc). I too will be doing lots of trips and no 2nd home. I will downsize if necessary.
Enjoy your life V x

Sarahwithlove

Instead of doing equity release, could you downsize? Or even potentially move to a cheaper area and release capital that way? Do you not see this being your forever home? If not then I'd look to move sooner rather than later. 

I'm not a fan of equity release generally due to the ridiculously high interest rates. But I can also understand why you want to release the equity and enjoy it now. You have no beneficiaries to your estate so I get the appeal of using it and alot will allow you to remain living in property for your lifetime. 

Ordinary_Yet_Unique

Retirement interest only mortgages can be a good alternative to traditional equity release. However, with your potential level of retirement income and savings back up, you will be fine. There are many people having a satisfying retirement on less.

Have to say as well, equity release is regulated much better now. You can also pay monthly interest to stop it compounding over time. For many it seems to have worked well. There is always a tendency to give negative experiences about anything more coverage.

peejaydj

in_need_of_direction said:

my tuppence worth is that you never know what's around the corner.  Retirement age doesn't mean written off as it used to.  you could meet new people, want to change your living arrangements, etc.  unless you actually need money, keep your options as open as you can.  in the meantime, take care

Very True    However I feel like I need to write my self ON not off ha ha. So after lots of crazy searching and profligate use of AI (I know dont trust it but its good for ball park info) I have looked at Equity Loan and now

1. understand Drawdown (Thankyou Dreaming) which is a possibility eg draw down £30k then £10k 10k when or if required... and on until I am a wizened husk giving the gnarly finger to the care home Dracula`s.

2. I have been doing some budgeting re savings and think I could do a lot with my savings/lump sum before getting into these equity schemes (Thankyou Organgrinder et al)

3. Am looking at RIO  which if I borrowed say £50k quick calculation says I will pay (at 5-6%) £200/ month (from £2k pension/month which is do-able but I will not be debt free and rates may change

OR

4. There is the possibility of doing PART Drawdown and Part RIO apparently if they dont conflict (how on earth do they figure that out?) which is interesting too.

All food for thought... but on the positive I have decided to  dip my toe into travel next year (Canada probably but maybe Japan) at Easter.  And am looking at Homestay accommodation which could save me a bundle... All kind of exciting and giving me a sense of direction and purpose  

Organgrinder said:

For holidays, shop around. Be flexible with your dates. Be adventurous if you see a bargain at short notice eg I once had a weekend to Lisbon for £130 plus food.

Live your best life and enjoy it. If you feel you can't afford something, don't accept it, go and find the means to do it.

Yes ... Here`s to being adventurous 

peejaydj

joedenise said:

I use regular savers to save for our holidays.  I opened a First Direct Account specifically to be able to use their regular saver as it pays 7% interest and you can save £300 per month.

Yep I have one! have been putting away £200/month 6.8% I think  good call.