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  • FIRST POST
    • westv
    • By westv 4th Aug 18, 9:28 AM
    • 4,623Posts
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    westv
    Mortgages after Retirement.
    • #1
    • 4th Aug 18, 9:28 AM
    Mortgages after Retirement. 4th Aug 18 at 9:28 AM
    It appears that interest rates may stay low for some time.

    I expect most people's mortgages will be paid off prior to retirement but do many here plan to keep running one on the expectation/hope that investment returns will exceed the mortgage interest over the long term?

    It was something I had considered but we are probably going to move after I retire and I understand mortgages and drawdown don't mix ie lenders don't generally take account of drawdown income.
Page 3
    • MoneyGeoff
    • By MoneyGeoff 6th Aug 18, 9:00 AM
    • 137 Posts
    • 89 Thanks
    MoneyGeoff
    I had a quick look at RIO mortgages. The market looks very limited.
    Originally posted by westv
    They are new because the FCA recently relaxed the rules. The market will open up over time.
    • downshifter98
    • By downshifter98 6th Aug 18, 2:13 PM
    • 375 Posts
    • 271 Thanks
    downshifter98
    For me it purely comes down to the maths; next year I will be able to take my pensions (at 55) but well aware that they will be discounted by 5% pa (over inflation) for taking them early - therefore I'm happy to borrow instead if the cost is sub 5% with the aim of repaying (probably) at age 60 when the pensions are at full value. To this end I'm currently owing 38t on credit cards at an annual rate of 1.45% - I'm currently mortgage free but will definitely keep an eye on the RIO mortgages if needed.
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