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Working til 70

Discussion in 'Personal' started by JAFF23, Feb 8, 2016.

  1. JAFF23

    JAFF23 Occasional commenter

    Anyone else been told they need to work til they're 70? My bank have told me this due to my mortgage and I am desperately thinking of alternative career paths as I really don't think I can hack the teaching profession too much longer!! Many thanks
     
  2. FritzGrade

    FritzGrade Senior commenter

    If you can pay the mortgage why do the bank care whether you are working or not? If you need to work to pay the mortgage then you go to 70 when that all stop.
     
  3. FrankWolley

    FrankWolley Star commenter

    Presumably you new this when you took out your mortgage? I mean if you started a 25 years mortgage when you were 45 then, yes, 70 seems about right!

    Alternatively, you could use your Teachers' Pension lump sum to pay it off (or some of it) earlier - and sell your house to downsize (or move to a cheaper area). Just a thought.
     
    lindenlea likes this.
  4. Flere-Imsaho

    Flere-Imsaho Star commenter

    If you can't hack teaching much longer then working until 70 is the least of your problems. If you really want career change you need to think about that mortgage and if you can afford to do something else. It's a balance of what you can put up with at work versus how (and possibly where) you want to live outside of work.

    If I hated my job, I would look for something els, even if it meant having to downsize and change my lifestyle. I hope you have some options at least.
     
  5. foxtail3

    foxtail3 Star commenter

    Can you overpay on your mortgage each month, so the term is shorter? It might feel better if it doesn't feel so long.

    If not, get researching transferable skills so you can get out of teaching.
     
  6. lanokia

    lanokia Star commenter

    We deliberately got a mortgage that went till we were 60.

    Surely the bank means you'll have to keep making payments till you are 70. Working or not is another matter. You might win the lottery...

    Or you could make small extra payments and pay off more of it quicker? We're considering doing that when I get a more stable employment situation.
     
  7. lanokia

    lanokia Star commenter

    Ours we can overpay by 10% without penalty.... so if it was £700 a month I assume we can pay upto £770.
     
  8. InkyP

    InkyP Star commenter

    I have to agree with this. Whenever I took out a mortgage (three times) I always ensured it would be paid off before I was 60. Using your lump sum and down sizing or moving to a cheaper area is the only alternative I can think of to working to 70.
     
  9. marymoocow

    marymoocow Star commenter

    We had a flexible mortgage and overpaid each month. When mortgage rates went down, we continued to pay the old amount. It is amazing how many years you can knock off your mortgage. We got our first 25 year mortgage 22 years ago, increased it's value and term when we moved house 16 years ago and we began over paying. We paid off a 5k lump sum from a relative that died and 2 years ago paid off the final payment with a small pay off from work and are mortgage free. Basically a 30 year mortgage was reduced to 18 years.
     
    wanet and lanokia like this.
  10. jacob

    jacob Lead commenter

    Banks will do and say anything to try to avoid another situation like 2008. Which bank? Is it one of the ones we "own" or one we bailed out? If it is, remind them of that. Your pensions got screwed and your pay held back so the government could prop up those banks. They can pay your mortgage several thousand times over out of the bonuses their bosses get for being profligate. Have they no guilt at all?
     
  11. TheoGriff

    TheoGriff Star commenter

    .

    Possible other careers

    Best wishes

    .
     
  12. Middlemarch

    Middlemarch Star commenter

    Well, yes and no - we don't know the exact circumstances of the OP's mortgage. If they took out one which won't be paid off until they're 70, surely they knew this at the time?

    Otherwise, I can't imagine why their bank would say such a thing.
     
    wanet likes this.
  13. Flere-Imsaho

    Flere-Imsaho Star commenter

    It's the sort of things banks tell you now to make sure you know the risks of borrowing and stop another PPI type scandal.
     
  14. burajda

    burajda Star commenter

    Crisis or no crisis, boom or bust the fundamental is that people have not, are not and are unlikely to volunteer to save enough for old age and eight years on the risks continue to be insufficiently insured. In good times perhaps individuals making bad or ill informed pension choices didn't matter so much, but today pension reforms should also consider restricting choices as ill informed pension decisions will result in destitution in old age. Sadly the government is not doing enough to legislate and educate to ensure that pensions are sustainable and defined between generations.
     
    wanet likes this.
  15. wanet

    wanet Star commenter

    But governments are only concerned with short periods of time. A short period in office ensures that this happens.
     
  16. lindenlea

    lindenlea Star commenter

    OP might have opted for an interest only mortgage at some stage.:(
     
  17. lanokia

    lanokia Star commenter

    Can you still get interest only? [and why would you want one!]

    When we went for a mortgage we didn't have the option of interest only.
     
  18. oldsomeman

    oldsomeman Star commenter

    When I was in debt I had to borrow money .I had not realised my house was secured against the debt. It would have resulted in my paying the mortgage till I was 85!
    Luckily we got paid some money from the PPI stuff this year which meant i could finally clear the balance owed.However , I doubt i could have hacked teaching full time till 70 in the present climate.
    You can change mortgage lenders if your terms are not right.seek impartial advice.
     
  19. Middlemarch

    Middlemarch Star commenter

    There's a fair extent to which the onus is on each of us to understand the terms and conditions of our own mortgages, surely? You can blame the banks to a certain extent, but the more educated of us ought to be able to understand the risks we're running.
     
    wanet, lanokia and Flere-Imsaho like this.
  20. wanet

    wanet Star commenter

    I recall a bank trying it's hardest to force an endowment mortgage on us. We resisted strongly. Others obviously didn't. If you buy something you need to understand what you are buying.
     

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