ChatterBank3 mins ago
Mortgage Or Not ?
I am selling my property for £200,000 and buying another for £250,000 so we need £50,000 to make up, I have £75,000 in savings but not sure if its best to use that or have a mortgage, me and the wife are both 74 and have a joint pension income of £20,500 a year, any advice please.
If my wife and I were in your place, we should use the £75,00 savings. We do not like owing anybody anything, and using the savings would mean that we should not be in debt to anybody. After all, none of us knows what's around the corner, and we should like to be able to sleep easy at night.
16:13 Fri 18th Sep 2020
Personally, I would take it out of savings. I am in the same age group. Why would you want a mortgage and be paying out monthly in times of uncertainty. It would depend obviously of why you feel your savings are necessary. You may have a plan for them. A financial advisor might give you better advice than we can give on here without knowing your circumstances.
We are in a similar situation. Except it would be £100,000 extra needed. I also would not have a mortgage. There is a form of equity release that allows you the money on draw down. You only take what you need when you need it. So in effect you have access to £100,000 if and when required. This is after you’ve purchased the new property of course.
Funnily enough our savings in Business ISAs are now back to what they were before Covid. Other savings are providing no interest worth talking about, so we are spending them on improvements to property. Our financial adviser is worth his weight in gold. The thought of being tied to a mortgage at our age is quite frightening and as Jack says there are very few mortgage providers who would be willing to lend at our age.
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