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Mortgages

Discussion in 'Retirement' started by Prim, Dec 8, 2019.

  1. Prim

    Prim Occasional commenter

    Just wondering, if you have/had a mortgage how quickly did you pay it off and did this then impact upon your career choices? i.e. Did you reduce your workload/position, aim to retire before 55 etc? Save more or just go on a no holds bar spending spree :)

    Thanks

    Prim
     
  2. Dorsetdreams

    Dorsetdreams Occasional commenter

    I still have a mortgage, children in higher education and I'm the sole bread-winner. BUT I've just reached 55 and if I had to stop now the lump-sum would clear the mortgage and I know I could get by on the pension.
    I find I'm feeling considerably less stressed than in the last couple of decades!
    I have not and will not reduce my 'position' but I have every intention of reducing my workload subtly. Although management might not agree, I'm quite convinced I'm teaching better as I let the silly tasks and deadlines slip.
    Last week I emailed my line manager to say I was too busy for our weekly meeting. Never done that before - bit of an experiment really. Result? He replied 'no problem, busy too!' . Life really is looking up!
    [Sorry, this doesn't really answer your question at all.]
     
  3. diddydave

    diddydave Established commenter

    When we met my wife-to-be had a flat that she couldn't afford to live in because she had stretched herself to the limit to get on the property ladder and then mortgage interest rates shot up to 15%+.

    I rented the flat from her and a couple of years later just after the crash in prices we bought a house - couldn't sell the flat because of the negative equity. We rented the flat out and that covered the mortgage on it until its value returned and we sold it at a small profit.

    These experiences made us very keen to pay off the mortgage as fast as possible and I think we cleared the house mortgage within 15 years (no kids and two wages - head of departments). About 10 years later we had saved enough to buy a bigger house with more land.

    With regard to careers in the early years we took on extra responsibilities, I did exam work and she wrote a text book - the money from these went to reducing the mortgage, though any year where our income pushed into the higher tax bracket we bought extra years or put it into private pensions.

    I'd been badly advised in the early years about opting out of the TPS but was reinstated with no loss after 5 years when the scandal broke and I complained about the advice.

    We were mortgage free in our 40s but it wasn't until we were approaching 50 that we started to look at retirement more seriously...once we realised we could go we did - aged 51 and 54.

    So in summary, we took on extra work to pay down the mortgage quickly. We aimed to stop working by 55 but found we could afford to go earlier. If we'd paid more attention we could have gone sooner.
     
    Nanny Ogg, Dorsetdreams and Prim like this.
  4. lindenlea

    lindenlea Star commenter

    We paid our mortgage off by the time we were mid fifties - overpaying whenever we got the chance.It coincided with offspring leaving university so all of a sudden we had much more disposable income. We decided to invest it in a more expensive house. That meant it wasn't such a big jump when we moved again to a more expensive part of the country after we had been retired for a few years ( I went at 58 , husband at 60). When we were working we lived fairly frugally and pursued career moves. We both aimed to stay working for as long as we could and it has paid off in retirement. No regrets.
     
    Prim likes this.
  5. thejudgesscoresarein

    thejudgesscoresarein Occasional commenter

    I took out a mortgage when I brought my first home in 1983 for £23,000 and then again, when I sold it in 1991 for £28,500 to buy my current house for £39,000. The mortgage term was for 35 years, and I finished paying this off in 2018. Doing this is enabling me to retire at 59 in August 2020 where I’m planning to sell up and re-locate down south.
    I always had in mind from my early days of my career that I would ideally like to retire before I’m 60 so that when I do eventually retire, I don’t have the hassle of still having to pay the mortgage and working up to at least 65.
     
    Prim likes this.
  6. HannahD16

    HannahD16 New commenter

    I'd been badly advised in the early years about opting out of the TPS but was reinstated with no loss after 5 years when the scandal broke and I complained about the advice.

    Diddydave can you explain the issue around advice you got to opt out and how you managed to get those years reinstated. I was supply for two or three years and was advised that I could request my pension payment to be reimbursed. I was supply at that time with you family, low incomes, expensive mortgage etc etc so took the money! Those lost few years would make such a difference to my decision making now. If only I had known then.
    I suppose it’s too late to do anything about it now is it?
     
  7. Prim

    Prim Occasional commenter

    We are focusing on clearing ours in the next 15 months, hard going but worth it I think. Better than saving at the moment. Still in our 40s just so like DiddyDave aiming to finish asap.
     
  8. littlejackhorner

    littlejackhorner Occasional commenter

    Good for you. I can vouch it is worth it. We paid our mortgage off within 6 years. We were still in our forties then.We both had well paid, responsible jobs so we just budgeted really carefully. Both of us planned to retire at 55. Once we had paid off the mortgage then our retirement savings began in earnest. We still had decent holidays and nights out but always stuck to a budget. Living on far less whilst we were earning a good salary really helped us understand what we could survive on. We are not wealthy but we have a comfortable life and have no regrets about retiring early. Good luck to you with your plans.
     
    Prim likes this.
  9. pauljoecoe

    pauljoecoe New commenter

    I took this attitude some years ago when we started receiving pay rises less than inflation. As a music teacher, I always went beyond the call of duty with concerts and extracurricular activities. Each year as my pay became effectively less due to being eroded by inflation I just did a little less. No one seemed to mind or even notice! I felt happier as a result.
     
  10. pauljoecoe

    pauljoecoe New commenter

    I took out a offset mortgage some years ago (10?) which meant any spare money paid off the mortgage. Hence it was paid off 4 or 5 years earlier. I also put as much as I could into AVC's. We could of had retired several years ago but I guess it depends on what you are happy to retire on. We then moved abroad to teach for a few years and earnt and saved a lot in the last 3 years so am able to retire comfortably next summer at 58.
     
    Prim likes this.
  11. avenka

    avenka New commenter

    Paying off the mortgage was the real game changer as far as giving me choices over new careers and retirement plans. My advice would be to always pay it off asap.
     
  12. PeterQuint

    PeterQuint Lead commenter

    When the mortgage has gone, I’m gone.
     
    eljefeb90 and Prim like this.
  13. heldon

    heldon Occasional commenter

    our mortage was gone when I was 50, wife was 44, another six year after I was gone and my wife also. Life is quite wonderful. Even enjoy Christmas which I has begun to dread in schools.
     
    Dorsetdreams likes this.
  14. eljefeb90

    eljefeb90 Senior commenter

    Mortgage paid..tick. Kids graduated...tick. Totally fed up with teaching...tick.

    Your responsibilities are only to yourself. Retire and do what you like whenever you like.
     
  15. maggie m

    maggie m Senior commenter

    Mortgage paid off last year. Daughters both graduated, in earning and in their own places. Retiring in the summer. Can't wait, ticking off the days.
     
    Dorsetdreams and Prim like this.

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