Anyone else with a mortgage they may never be able to repay?

[Notcontent]

When I first started working I did all the right things - saved money, bought a flat as soon as I could, etc. However, as a result of moving to a more expensive area (not through choice), divorce and being a lone parent (all not my choice!), I have ended up with quite a large mortgage, which I took on in my mid 30s. I am now in my mid 40s and despite making extra payments I am on track to keep paying it off until I am in my 60s. The problem I face is that while I am happy to work for as long as I can, it is very unlikely that I can continue in my current reasonably well paid job indefinitely. I therefore think it’s very likely I may need to sell the house at some point. It’s a very small house, so not exactly downsizing...

I’m sorry you’re feeling worried about this.

I know very little about economics, but just a quick thought - if we as a country have inflation in the years to come, and £10,000 now is worth less over time, and wages change to reflect that (ie increase), then the capital that you owe would stay the same and would be more manageable in terms of overpaying and paying off in full.

Vinoandbrie - yes, that is true. I am trying not to worry about it too much, as anything could happen I guess.

I bought in my late 30s. I don't expect to finish the mortgage until I'm in my 60s, it doesn't seem so old to be mortgage free. Though I've some health concerns recently discovered that may mean I do not see the day myself. Hopefully my death in service will cover it for the children, other than the practical concerns of keeping everybody housed their doesn't seem to be much point worrying about it.

You say you can't downsize, but is there any chance you could move to a cheaper area to buy a similar sized property and reduce your mortgage that way?

If downsizing isn't an option would you consider 'down-areaing' once your DC's older and you don't have to worry about school catchments etc.

Assuming your DC will fly the nest before then can you not downsize?

Why can't you carry on in your current job? Having a mortgage till mid 60s seems pretty normal to me. Haven't really considered not staying in my current job till then!

@Notcontent

The sad thing is that - yes - we do have inflation but that wages do not rise in line. When I first worked I was on a scale where you could rise 2 or 4 increments at a time and the scale went up by a substantial amount each year, I recall in one year the scale went up by 17%! Imagine that these days! I had second and third jobs casually. Overpaying on a mortgage is the way forward. However you need to calculate the result. If over 20 years you pay off £100 extra a month then you will have reduced the mortgage by £24000. You need some calculation as to how much will write it all off in a set time.

It's not easy...

Thanks for your comments. I do really want to continue working but I work in the private sector - and basically the only older people are in senior management and everyone else is pretty young. I think there are lots of job sectors like that.

But just because there are a lot of you people in your sector it doesn't mean you can't keep working there surely? If you are doing a good job you just keep working no?

Have you tried looking at a mortgage overpayment calculator? Even small amounts add up over the years so it could end earlier. Check you don’t have a penalty for this www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ I’ve taken 6 years off my term by putting in what I can when I’ve been able to

@Notcontent

Thanks for your comments. I do really want to continue working but I work in the private sector - and basically the only older people are in senior management and everyone else is pretty young. I think there are lots of job sectors like that.

so? If you're doing a decent job and don't hand your notice in then why would you assume you wouldn't be able to stay?

I’m assuming you’ve got a capital repayment mortgage op?

What interest rate are you on? We bought our house at 4.89% nearly 10 years ago, our fixed rate ended and as a result of paying off some capital in our standard payment and the value of the property increasing we fixed again at a much lower rate.

We’ve been able to use the difference (£260) to overpay at no cost to us which will reduce the term by nearly 7 years.

By the time you get to be in your 60s it will be the norm for people to be working until they drop so I wouldn't worry about still doing your job.

Thanks for all the tips. I made a large overpayment a while ago and will keep doing this in the future.