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Let’s talk mortgages with Marsden Building Society - £100 voucher to be won

(271 Posts)
JustineBGransnet (GNHQ) Mon 03-Aug-20 13:38:12

When taking out a mortgage, it’s the case for most people that they aim to pay it off before retirement. However, taking a mortgage out in retirement is becoming increasingly common. With that in mind, Marsden Building Society would like to hear your thoughts on mortgages - and in particular how you’d feel about taking out a mortgage in later life.

Here’s what Marsden Building Society has to say: “A number of factors can lead to borrowers seeking a mortgage in later life, from wanting to move to a new house to remortgaging your home, or even releasing equity from your property for home improvements or to help children or grandchildren onto the property ladder.

At the Marsden we offer a range of solutions for those looking to borrow into retirement including 55+ Retirement Mortgages which are just like a conventional mortgage, except they are available to applicants aged 55 to 85 and Retirement Interest Only (RIO) mortgages – an alternative to equity release.

We’ve been helping our members to own their own homes since 1860, so we understand what’s important when looking for a mortgage provider. Our mortgage advice is free, which means you’ll only pay a fee if you choose to proceed with your mortgage, and our UK-based teams pride themselves on their straight-forward service. If a product isn’t right for you, we’ll let you know.”

What are your thoughts on mortgages generally? If you’ve paid yours off how did that make you feel? Would you consider taking out a mortgage in retirement? What would your reasons be? If you’d never consider it, what would stop you?

All who share their thoughts on the thread below will be entered into a prize draw for a £100 voucher for a store of their choice (from a list).

Thanks and good luck!

GNHQ

Insight Terms and Conditions apply

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Marsden Building Society is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in the Financial Services Register under no:206050. Marsden Building Society is a member of the Building Societies Association, the Financial Servicescompensation Scheme and the Financial Ombudsman Service. Principal Office 6-20 Russell Street Lancashire BB9 7NJ. FP191711

vampirequeen Tue 04-Aug-20 11:40:31

I've never had a mortgage. Saving for the deposit was always beyond me even though I could have afforded the monthly payments.

Charleygirl5 Mon 10-Aug-20 17:26:12

I paid off my mortgage when I retired, using my lump sum and it was a huge load off my mind.

I would not dream of taking out a mortgage now- okay, my pension is fixed but I doubt if I could afford it, living in London.

Missfoodlove Mon 10-Aug-20 19:49:12

We own two properties, one is an investment, we are however selling it as we sense a downturn in city properties.
We do not currently have any borrowing.

We would consider a small mortgage to buy a uk holiday let.

janeainsworth Mon 10-Aug-20 21:40:40

It was with relief we paid off our mortgage in our 50s.
I can’t imagine any circumstances in which I
might take one out now.

marpau Tue 11-Aug-20 09:52:42

I paid off my mortgage as soon as I could best feeling in the world! I would never have a mortgage in retirement as I was able to retire early with the money saved. Having a mortgage would mean working longer and I would rather have the free time

rizlett Tue 11-Aug-20 09:54:35

I've had a few mortgages over the years but currently have a 7 yr loan which was used to finish my house build. It's a good interest rate but I'd happily switch it to a mortgage if needed.

Jacks71 Tue 11-Aug-20 09:55:58

Looking forward to being mortgage free. Might be interested in a different way of doing equity release but that’s a long way off.

silvercollie Tue 11-Aug-20 10:09:20

I have always considered a mortgage to be a method by which a large population can be kept under control.
Cannot understand the phrase 'own your own home' when you owe the lender a massive amount of money. Because that is what having a mortgage becomes. It is basically a long loan coloured to make people think they are 'in charge' which, of course, they are not.
Then, to make themselves feel better about being in such a lot of debt, they look down their considerable noses at those who choose to not follow the unsafe practice of using their homes as collateral.
A bit of a large con, n'est ce pas.

Nezumi65 Tue 11-Aug-20 10:17:21

I'm pleased to see Marsden are thinking about older people. I think the property market is changing rapidly now and the way people will live is changing. Our neighbours have bought a huge house where they live with one of their children and grandchildren. The house is big enough to have separate areas so they're not falling over each other and it has made me think it could be a possibility for the future for us. We're a family who get on well but don't live in each other's pockets, so with the right property could work. I am expecting to work into my seventies (am retraining in my 50's with that idea in mind), and while I wouldn't be keen to take on another mortgage after we have paid ours off (not that long away now), I can see that I might do it to achieve the right property. If we were staying in a house ourselves we would downsize so would have no need of increasing a mortgage.

So although the question is about retirement mortgages (my husband may retire before me, although maybe not), I guess it means that there will be more available for the older age group in general. We have shocking pension provision (as do many of our age and younger), so I guess working until older is going to become a lot more common.

It's good to know the option is there though, even though it wouldn't be my first choice.

homefarm Tue 11-Aug-20 10:18:52

We paid off our mortgage when we retired.
It was a struggle for years with the high interest rates.
I would not consider another one or even worse, equity release.
I loathe the way living accomodation is advertised as well - a real put off for me.
They say "BUY A HOME"
No you buy a house/flat or whatever and "MAKE a Home" i it!

Gelisajams Tue 11-Aug-20 10:22:09

We took a small twelve year mortgage out 3 years ago, at the ages of 63, using our projected pensions to pay for it. Quite happy to do so as it enabled us to buy a house similar to the one we left, to be nearer the children, in a more expensive area.
Looking forward to paying it off though, we have never been completely mortgage free. The mortgage protection was about twice what we were previously paying. That told us in no uncertain terms that we were getting old!

Molli Tue 11-Aug-20 10:25:41

18 years ago when we bought out current house we had a part and part self cert mortgage with about 30% being interest only. It’s worked well for us over the years. We’ve also overpaid when we can. However now with 6 years to go we are facing not having the finances that we had relied upon to pay off all the interest only part. DH Unexpectedly lost his job 8mths ago ( he had expected to be there until state retirement age) and so is now drawing down from his pension pot. I am self employed and my income has gone down by 3/4 as a result of COVID and now looking to perhaps take my pension early. We have always been very careful with money but it is a worry. One of his pensions had always been ear marked to repay the interest only part. You can never predict what is going to happen however careful you are.

Riggie Tue 11-Aug-20 10:33:48

It felt very "grown up" when we paid our mortgage off. Never thought of taking one out in retirement but its an interesting thought!

Morgie52 Tue 11-Aug-20 10:38:27

We paid off our Mortgage after a small inheritance. After which we downsized in order to help our three children with their property purchases. We are just comfortably managing now and hope that we never need another Mortgage.

AliBeeee Tue 11-Aug-20 10:42:24

I paid off my mortgage before I retired. I wouldn’t take out another one. If something happened that meant I needed to raise funds, I would sell and downsize rather than take a mortgage on my home.

lovebooks Tue 11-Aug-20 10:52:16

We did a draw-down in 2009, having paid off our mortgage. Our fantasy was that we'd get a few things fixed, and then do some interesting stuff like holidays etc while at the same time reducing IHT for our children. A very long-term friend, a City gent with a lot of financial knowledge recommended Godiva.

It was the stupidest decision we ever made. My husband died suddenly a few years later, so plans fizzled out. Our friend, the financial advisor, also died, followed shortly by the suicide of his wife because she couldn't face losing the house that she loved. At the time we did the drawdown, interest rates were 6% where they have remained unchanged. Add to that compound interest... well, what a nice little earner we have all been for Goviva!

Our drawdown was 'lifetime', meaning that we'd never lose the house. These companies collect when you either die, sell the property or go into so-called 'care'. Death's the easiest one - other people's problem after that - but 'care', if needed, costs a fortune, and house-selling isn't exactly cheap.

In retrospect, I'd always advise downsizing, and yes I know now exactly what we should have done and didn't. These companies are sophisticated well-heeled loan sharks. Avoid them like the plague.

Athenia Tue 11-Aug-20 10:59:45

I am actually in the process of preparing to take out a mortgage on the retirement flat I live in, bought outright for cash. In fact, people with a pension income have a more reliable income source than those still in work, because a pension is guaranteed. And after all, the mortgage company have a legal claim on the property if their client dies before the term of the mortgage. So mortgages for our age group are actually a very good financial product. My provider says that all his clients are in their seventies and eighties. In case you are wondering why I need a mortgage. I want to extend the lease on my property, but also as a horse rider throughout my life I am in the process of buying my next horse. I may be 71, but am very fit, and as a member of the Facebook group 'Gals Over Fifty and In the Saddle', I fully intend to enjoy every moment I have with the next horse in my life.

Shandy3 Tue 11-Aug-20 11:05:22

When I originally took a mortgage out my intentions were to pay it off a.s.a.p.
However later in life I think that as long as you can afford it why not have a mortgage especially when interest rates are so low?
At any point in life as long as there is affordability a mortgage can support your needs and even be a type of equity release I.e not digging into your savings!

CrazyGrandma2 Tue 11-Aug-20 11:34:53

We paid off out mortgage using DH lump sum when he retired early on health grounds. We are very fortunate to have been debt free since then. We only use loans etc if they are 0% interest and it suits us. Under no circumstances would we now take out a mortgage.

GeminiJen Tue 11-Aug-20 11:53:15

Thoughts on mortgages generally? ....I've had a fair few over the years (I'm 76 now) and my feelings are mixed. The first was taken out when I was expecting our first child. While it was a bit of a struggle financially, I do remember that home ownership felt good. Not so good were the years when interest rates reached 15%. That involved real hardship for a while and made me determined to be mortgage free as soon as I was able. I managed this before retirement and the feeling of elation was immense.
Would I consider taking out a mortgage now in retirement? Never. I've already downsized and would do so again if need be.

gillyknits Tue 11-Aug-20 11:53:50

We were in the generation that were given endowment mortgages and as we moved, eleven times over the years, ended up with ten endowments. Only one of them paid out the expected amount and the others had shortfalls amounting to £60,000. We sold them and tried to pay the mortgage off but in retirement we’re left with a substantial sum.
We have just taken out a lifetime mortgage to pay this off and it’s such a relief to know we won’t have it hanging over us anymore. Hurray!

HHBBNN54 Tue 11-Aug-20 11:55:29

I paid my mortgage off some years ago now and the way things are going in this country job wise I am pleased I no longer have this to pay now I am retired.

lurchergirl Tue 11-Aug-20 11:58:33

We had an endowment and all the problems with the policy not paying out enough to clear the debt. We tried to get some compensation without any luck so we paid it off when my Mum died and left me her house, It was wonderful to not have that weight. I would not want a mortgage in retirement.

AlysonH Tue 11-Aug-20 12:01:00

I also would not want a mortgage in retirement. When we returned from living overseas we bought a small property outright rather than have a mortgage which would tie us down for years.