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    • corkymills
    • By corkymills 12th Aug 19, 11:35 PM
    • 1Posts
    • 1Thanks
    corkymills
    Redundant at 62.
    • #1
    • 12th Aug 19, 11:35 PM
    Redundant at 62. 12th Aug 19 at 11:35 PM
    Hi, I was made redundant in May after 20 years of loyal service. I was given 12 weeks paid notice and statuary redundancy pay. I am due to "sign on" in September. Jobs in my field are few and far between and at the tender age of 62 the future looks bleak. I have four years left on my mortgage ( about 25 k ). If I do manage to get a job I wont be on the wage I was when I took on the mortgage. I can pay my way until Feb/March after that I have to put the house up for sale and downsize. I love my house and the area and would hate to move. My house is worth maybe 140,000 and I could buy a flat for maybe 70,000 leaving me about 45,000. I have heard of a thing called equity release and wondered if this is the way to go? I would obviously need there to be enough to pay off the mortgage but I don`t know if there would be any change left for us. With the mortgage paid I could find a job to suit my needs. Any advice would be helpful. Move or stay?
Page 1
    • oldtractor
    • By oldtractor 13th Aug 19, 8:18 AM
    • 2,213 Posts
    • 15,066 Thanks
    oldtractor
    • #2
    • 13th Aug 19, 8:18 AM
    • #2
    • 13th Aug 19, 8:18 AM
    Sorry to hear of your predicament. regarding equity release I would do a lot of homework. I don't think they are very good value for money. I know you do not want too but maybe moving would be better, providing you pick a good property that needs little maintenance so that doesn't swallow up your income. Look upon it as a new exciting oportunity, reach for the new oportunities look upon it as an adventure with lots of possibilities. Best Wishes.
    • tealady
    • By tealady 13th Aug 19, 9:30 AM
    • 3,178 Posts
    • 4,173 Thanks
    tealady
    • #3
    • 13th Aug 19, 9:30 AM
    • #3
    • 13th Aug 19, 9:30 AM
    Hi
    Dont know how you are fixed for space but have you thought about a lodger.
    Also I would contact your mortgage company to explain, they might be able to extend your mortgage.
    Also I would start job hunting NOW. Tell everyone you know you are looking, you never know the company they work for nay only recruit by word of mouth. I have known someone who got a job that way.
    Good luck whatever you decide.
    Proud to be an MSE nerd
    Judge people by their achievements, not by their mistakes
    • MEM62
    • By MEM62 13th Aug 19, 10:42 AM
    • 2,898 Posts
    • 2,576 Thanks
    MEM62
    • #4
    • 13th Aug 19, 10:42 AM
    • #4
    • 13th Aug 19, 10:42 AM
    Sorry to hear of your predicament.

    As already suggested, look at this as a new opportunity.

    Equity release, in my opinion, is an awful product and the last resort of the desperate. Forget all the fluffy adverts, there are very few cases where this is a good choice of product.

    25K is not exactly a stellar sum to have outstanding in your mortgage and this can be serviced on a modest salary. The problem is, we do not know enough about the rest of your circumstances are you;

    Married?
    Wife working?
    Kids at home?
    What is you pension provision?
    What savings do you have?

    All these things will have an impact on how you play things.
    How much will you walk away from your current job with?
    • gwynlas
    • By gwynlas 13th Aug 19, 11:07 AM
    • 291 Posts
    • 341 Thanks
    gwynlas
    • #5
    • 13th Aug 19, 11:07 AM
    Redundant at 62.
    • #5
    • 13th Aug 19, 11:07 AM
    Equity release is unlikely to be much use to you due to your relatively young age, you could live for another 30-40 years.
    You do not say what work you were doing or what other circumstances are but would you be open to doing any job you are physically capable of?
    There are always roles available for carers, in catering and in retail which might be added to by casual work such as gardening or as a handyman.
    A lot depends on your mental state and whether you see yourself as redundant but that is a whole other issue,
    As suggested previously you could take in a lodger for extra income.
    If you are happy in your home and would like to stay there then look through the other sections of the board and seek advice regarding paying off outstanding mortgage. It might seem a huge goal but you could eat an elephant one bite at a time.
    • warby68
    • By warby68 13th Aug 19, 11:18 AM
    • 1,407 Posts
    • 10,979 Thanks
    warby68
    • #6
    • 13th Aug 19, 11:18 AM
    • #6
    • 13th Aug 19, 11:18 AM
    If you love your home, it isn't a money pit and your mortgage is 'only' 25k, looking for ways to stay put and manage that mortgage might be the better thing for you. Any move costs a chunk in fees and expenses, even when downsizing, which is then an immediate write off.

    Equity release? No thanks.

    Could you get another job, any job, quickly just to keep some cash coming in? Not having to live off your redundancy money might help.

    Obviously more detailed advice would depend on your wider circumstances such as savings, debts, dependents and other household earners and income.

    Seeing what your mortgage lender could do, especially if you have secured another job, would be useful.
    • TBagpuss
    • By TBagpuss 13th Aug 19, 11:50 AM
    • 7,643 Posts
    • 9,948 Thanks
    TBagpuss
    • #7
    • 13th Aug 19, 11:50 AM
    • #7
    • 13th Aug 19, 11:50 AM
    How much is your redundancy payment? Is using some of the as a lump sum to rduce your mortgage an option?

    What about pensins? Do you have any pension where you might be able todraw down a lump sum, as you are over 55, to use to pay off or reduce the mortgage?

    Equity release is an expensive way to borrow monw.the percentage of the value of the housthat you can borrow depends on the age of the youngest borrower, and if you are only 62 and therfore the lender is not ging to expect to get their money back for another 20-25 years, so the proportion of the house value you would be able to borrow is likely to be fairly low.

    I'd agree with the suggestion to look into whether you might be able to get a lodger in to help cover the costs of the mortgasge - also consider trying to get a job, even if it is less well paid than the one you have lost. If you are working, you may then be able to look into remortgaging over a longer period of time in order to reduce the monthly payments, until you get better paid work.
    • getmore4less
    • By getmore4less 14th Aug 19, 12:38 PM
    • 37,613 Posts
    • 23,248 Thanks
    getmore4less
    • #8
    • 14th Aug 19, 12:38 PM
    • #8
    • 14th Aug 19, 12:38 PM
    I am due to "sign on" in September.
    You can sign on for JSA the day you finish.
    contributions JSA or equivalent is paid out for 6 months

    if you delay too long you don't qualify

    https://www.entitledto.co.uk/help/jobseekers-allowance
    • happyc84
    • By happyc84 8th Sep 19, 11:22 PM
    • 165 Posts
    • 83 Thanks
    happyc84
    • #9
    • 8th Sep 19, 11:22 PM
    • #9
    • 8th Sep 19, 11:22 PM
    If the OP is still reading this - 20 years service = 30 weeks plus notice period.


    Good luck at this difficult time.
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