If you are in your 50s and 60s- mortgage question

[CookieDoughKid]

Are you any closer to paying off your mortgage. If not, what's your plan?

We live in Didcot which is fine. It's got a lot of redevelopment happening and we have a nice family new build on an estate. We will pay it off in our mid 50s if we don't move to a more expensive house or expensive location. The house we are in is fine and convenient but it's not my dream house. If we do decide to move we will have to be working till our 70s or downsize later. If we stay we can comfortably afford our house on a single salary. Not sure what to do hence reaching out to more experienced folk here!

Mortgage runs til end of 2020 when dh is 59. Will be gone end of 2019 when he retires for the second time, or sooner, if we save hard for the next year or so. I was going to chunk £10k off it, but then we had to move (we rent abroad), and that is the quickest way to burn money that I have yet found!!

We're mid/late 40's and have always been financially conservative regarding our mortgage debt. Context and life experience will drive your motives. We've offset almost all of our mortgage 2 years ago and are focusing on our pensions and other investments in order to potentially retire earlier than 67/68. DH's male side of the family don't seem to live beyond their mid 60's so I would personally like him to have the opportunity to retire a few years before that.

Realistically, we work in industries (telecoms/IT) where the average age demographic is youngish and the majority of employees are not 50+, let alone 60+ (not in the private sector anyway). So, redundancies are common for those in senior positions from 50+ onwards and it is harder to secure equivalent posts. Redundancies in 2003/4 and again in 2008 - both in times of economic downturn, we are nothing if not realistic that we will be facing that again in the near future. Consequently, I make sure that we save/invest a healthy amount when we can (make hay whilst the sun shines!) and that we don't have all our eggs in one basket because you simply don't know what's round the corner.

I have younger friends (just turned 40) who have just committed themselves to a £400K mortgage in order to buy a 'WOW' barn conversion. He's a GP partner and she's a vet though so I guess that job security/income wise, it's not a huge gamble for them.

If you have good job security, go for it but personally, I wouldn't be prepared to have to work long and stressful hours for an additional 20 yrs into my 70's for the "dream" house.

My youngest is 10 so we're aiming for early retirement of 60 since by then, she will hopefully have finished her undergraduate degree.

Next week, I'm attending a family funeral. My relative died of cancer at 73 after a shockingly rapid decline of less than a fortnight after diagnosis. This has certainly focused my parents' minds (they're in their late 60's/early 70's). They have decided to sell off their holiday home overseas as part of streamlining their assets. I don't think it's a coincidence.

This thread is interesting for me. I'm in my 30s, but trying to be mortgage-free by the time I am mid 40s. (I don't have very elevated expectations in terms of a dream house or anything, and I live in a very cheap part of the country, so am on track to do this).

However, I have started to think for the first time about retirement. Where do I want to retire to? Where do I want to be? I honestly don't know. In practical terms, I think I am pretty much stuck in the city where I currently live while I work, even though it's not my ideal location. But after that? What if I want to move to a more expensive area of the country - like back to where I'm from, which is a place/landscape that I love??

Would it be sensible to take on a second mortgage in my 40s for a place to retire to? Or is this a crazy risk? Thoughts?

We are in what was our dream house. It is too big and too expensive to run now we are in our fifties - large garden with lots of nearby trees, hefty community charge, runs on oil, has a septic tank. Has recently required redecoration which was a mammoth task as when it was stripped off, it needed replastering, floors needed re-sanding etc. Everything is a big job. It is pretty here, but also the very narrow roads are busier and have become dangerous. I lose my wing mirror every few weeks and have to run a banger because of all the scratches and bumps from the hedgerows.

We only haven't moved because two of our grandchildren live with us so rooms are generally used. Reading some of the posts on here, this house is a home for a family in their thirties with younger children who can enjoy the garden (and all the work it entails).

It will be paid off in our early sixties (six years), but we only have a small mortgage and we could get rid of it if we put our mind to it.

Don't forget that you do slow down in your mid fifties. It may be your dream home now, but bear in mind it might not be in a few years time.

The pp who said they had downsized to a cottage, well that sounds lovely and is a move we should really be making.

Can I ask those of you downsizing what made you decide to do it?

I am worried because PIL are 70 and are thinking of upsizing. They hoard a lot of stuff, and there is no longer room in their house for everything. However, they aren't really managing their 3 double bedded semi as it is - the standard of cleanliness has definitely gone downhill, and there are boxes piled in every room, with stuff absolutely everywhere. Without exaggerating, it looks like a house that is in process of being moved in or out of. MIL doesn't seem able to bring herself to get rid of anything any more but there is far too much furniture for the space and piles of junk in literally every room, hallway, and corner.

In addition to this, FIL is losing his mobility quite badly. He walks with a stick, hunched completely over, but refuses to have a badly-needed knee op. I fear he will be in a wheelchair before much longer. The clutter is a real health and safety concern as he is now prone to falls.

However, their apparent plan is to move to the biggest house they can afford so they can spread out all their stuff! DH and I are worried that this will be a millstone around their necks with the upkeep and will not actually help to deal with their problems going forward.

It's a very delicate subject to raise as they aren't open to advice and there's nothing worse than giving someone unwanted counsel. We also don't want to appear like we are telling them how to spend their own money. We don't mind if they buy a new house that costs whatever - it's more an issue of practicality/comfort.

We live in a top floor tenement flat. We're mid forties and will be mortgage free in two years. I don't have savings or a great pension but once we've cleared the mortgage we can start that.

I'm really happy to stay in our lovely flat. It's relatively low maintenance (victorian build so touch wood), safe, warm and secure.

I love the disposable income a manageable mortgage brings. There's no way we'd start again now.

We will be moving back to the UK at the end of 2019 to our house there. We are going to live in it for 5 years or so, and then decide what we want to do. Whilst I adore the place, and it's my forever home, it's a large family house, and there will just be the two of us and the cats, presuming ds will be in gainful employment by then. It's in a village, not that well served by public transport, and you have to drive everywhere. Either we move to the local town (yuck), or we move over the county border or a town further away to ensure we can drop to one car, and be within walking distance of shops etc as we get older.

Guilty, hammering home that houses are more likely to sell when they've been thoroughly decluttered might make them rethink. Did they never see house doctor?!

PickA - I honestly think it's at a problem level where MIL cannot let any object go. They literally have about 13 side tables in their lounge, it's like something out of the Crystal Maze navigating it. Their loft is full of junk - I mean things like broken midi systems from the 1980s - but nothing can ever be binned. I think the only way they can envisage moving house is literally taking everything with them.

What is a dream home though? And is that going to change as you get older anyway?

I watched my dad deteriorate in old age. He lived with mum in a large 4bed semi with a big garden that they had been in for 40 years. The house didn't have a downstairs bathroom (2 upstairs) and dad couldn't get up and down and so had to go into a home, and mum is left with a large house and garden to maintain. Mum said in hindsight they should have downsized to a bungalow or retirement village where they could have managed for longer.

My experience with dad has made me think that I really need to think ahead as I get older. I love my current house but it is on a hill and has steps front and back. They will be impossible to climb if I should get less mobile as I age. I would like to move somewhere that I will be able to stay in as long as possible, so my dream house for old age will be very different from my dream house now.

MissWilmotts - It makes me laugh sometimes on here when I hear people talk about their "forever home" because it's such an obvious denial of ageing! A perfect home when you are 40 with 3 growing children is very different from a perfect home when you are 75.

Part of the problem is that older age has changed: people are living much longer, but not necessarily in a fit and healthy state. SO many older people find themselves in that exact same boat as your poor Mum, because they haven't wanted to face the issue of needing a different kind of space for care needs/mobility issues. Those who have the best time tend to be those who have anticipated and moved early, so that they've been able to settle into a community, and a home, that suits their needs while they are still active and healthy. There are lots of different choices on offer these days, and some people are even setting up their own communities!

(I know a bit about this because I've done some research in this area!)

Yep, one of the great things about the house we're buying is that it's a dorma bungalow with about 2/3 of the square footage downstairs - kitchen diner plus two reception rooms plus bathroom. Upstairs is 3 double bedrooms, so the boys have their space as they grow up and into adulthood, as they both have SN that make living completely independently unlikely - the location is also good for access to 5 different universities if DS1 does take an academic pathway. Meantime I can live in it just as a bungalow, in years to come.

My parents really want to downsize but my dad has so much stuff from his hobby that he's completely overwhelmed by the prospect of sorting and selling on. It's really specialised stuff so no one else could go in and do it for him.

Ah, downsizing. It realistically takes a couple of years to organise after 30 or so years in a House.
Firstly, clear loft of everything. Especially DCs childhood or Teenage clutter. Throw away anything you were saving in case you need it. Take to the charity shop any unwanted books. Bare in mind this is only the first tranche of ‘clearing’ and at least 2 years before you want to move.
Next, go through each room either freshening the paintwork or completely redecorating. DCs once childhood bedrooms will need the complete works, plus a cheap replacement carpet.
By this time you will have been interrupted by either Christmas, summer holidays, visitors or adult children temporarily returning. Or all 4!
After the redecoration and fixing of outstanding DIY, or problems caused by the redecoration, it is time for the serious decluttering and throwing out. It depends on the size of house and how downsized you are going to be. We became 2/3rds smaller.
After you’ve thrown out all the unnecessary furniture, nick nacks, kitchen utensils and books, you’re exhausted and you can ring the estate agent.
Then the real stress begins !

I would echo what others have said. We raised 2 DC in a 3 bed house. London so we could not afford more. For a couple of years it was a bit of a squash but by the mid teenage years it was fine. Now one is at University but the other has returned and the house is just the right size. We will probably be here till we can't manage the stairs.

I also agree with earnings becomming less secure when you get older. Know someone who always earned massive ammounts. This stopped mid 50s. Their spending didnt.

I echo others who question what a dream house is.

I live in my dream house which suited all our needs 5 years ago, but in those 5 years, I have seen my two children move out and my mum had a nasty fall and therefore needs more support. My DH also lost his job 4 years ago and wasn't entitled to redundancy pay as he hadn't been an employee long enough so I upped my hours at work and have been paying the mortgage ever since. While DH has now got a job, it isn't overly secure (middle fifties) and neither is mine. Our house is a dormer bungalow and therefore we could live downstairs in the future, however I now realise that the garden is too big - I'm struggling with it now and also our utility bills are very high, along with constant maintenance.

We seem to have lots of direct debits and not much left over. In our fifties we now realise that we would rather live somewhere smaller and easier to maintain with consequent lower bills and more available leisure time and cash to enjoy it.

We both have had previous relationships and this house is our first together, which we both wanted, however our mortgage still has another 10 years to run and we both feel that we would like to retire early enough to enjoy a healthy retirement.

So, the house essentially was my dream house 5 years ago. Today, I am not so sure. We have discussed downsizing in the next few years so the next dilemma will be finding the perfect property near to all the amenities, some outside space (a patio or balcony will do just fine!), parking for the car, maybe a view but no steps or hills etc etc!

JT - you sound incredibly organised!

Have you seen the new cleaning movement - it's called something horribly morbid sounding like Swedish Death Cleaning. But really it's about setting your house in order (at any age) to ensure that you're not asking other people (or the planet) to deal with your possessions as a burden. The point is to live lightly, with a sense of impermanence. I quite like the idea. I'm hoping to set my own house in order over the next year.

We live in our ‘forever home’. But that just means it’s what we aspired to for a long time. It is ideal for the current stage of our stage of life but we will be downsizing when we retire. We already know what we aspire to in our retirement property (area, size, style etc). That will become our ‘forever home’ in retirement but doesn’t take away from the feeling that the current house is more than I’ve ever hoped for.

I have driven the downsizing here. Primary motive is that we moved from somewhere relatively cheap to somewhere where houses are almost double for the equivalent size.

We moved into the same size house last year and then DH’s job came to an end, he earns half of what he used to post brexit than he did before.

Our current home costs £2.5k council tax, £2.5k oil and logs, we need two cars, the grass takes a day to cut, etc., etc.

We can still afford it but I don’t want to spend our cash on such a money pit. So we are cutting our losses.

I am dreading the process as we have got barns and outbuildings as well as a house twice the size!

We bought in our 20’s and overpaid to pay off in our 30’s. Then remortgaged to extend and did the same. Now late 50’s we’re going through and redecorating, alterations, etc to pay before we retire. Originally house was a stepping stone to something bigger and better. But we love location, know what’s there as we built it originally and will probably treat as a lock up and leave when we retire. We’ve never overstretched ourselves as were always aware one of us could lose our job, rates could rise (and they did to double figures). Yes we could have kept moving but the costs of doing so put us off.

We intend to sell our house and move back home where houses are a lot cheaper

I (and later we) paid a mortgage for 25 years. This was just coincidence really, because there were many house moves within that time, and then buying with my partner, but now we are mortgage free in our early sixties and both retired. I wouldn't say our house is my dream house by any means (I could never afford that small cotswold estate I always hankered after) but it suits us. One thing though, I would never downsize. I have lived in flats and small terraced houses, and I don't like the lack of space and storage. Why do people think just because you're old you need less space? Quite the opposite really. We have room for family to stay, and, more importantly, we have our own areas in the house - a study for my oh and a craft room for me. I would hate for us to be living on top of each other all the time.

Well Lucisky, I can only speak for myself re the downsizing but......

with children at home - a bedroom each and an extra bathroom has been a bonus
with just 2 of us I reckon we could easily mange with a 2 bed or maybe 2 bed + box room

with children at home - we wanted a garden with swings and enough space to run about with a football / rugby ball / cricket game or water slide
with just 2 of us a small place to sit out will be lovely

with children at home, there is a never ending collection of bikes, scooters, even kayaks, but when I retire there won't be

with children at home / growing up it has been a bonus to have spaces I can separate them - one doing trumpet practice while another does homework while another is on the x box etc. I won't need so many 'living spaces' when dh and I live on our own.

When there are just 2 of us I'm not anticipating needing the 'spare' freezer nor the 'spare' fridge.....

etc.etc.etc.

Don't think it is that hard to see why people would want a smaller space.

Thank you all for your responses. Dunraven got it spot on really. Barchester and Spickle - thank you for your perspectives, your houses sound lovely but a money pit at the same time.

The more I think about it, the more I think I am after a dream lifestyle rather than a dream house. I think there is only so long that I want to carry an intensive high paying job. My dh's family, they don't seem to 'age well' in their 60s and beyond, suffering from all sorts of aches and pains and I think, if my dh gets another good 10 years of work we are lucky. It would be so good if we could both step down a gear in our 50s knowing our house is ours and not have to worry about paying the mortgage. So I think for now and not more to a flashy home and posh area. We will stay where we are in Didcot. The most 'normal' town in the UK as the BBC news reported this year. Life is good and we are happy, why add more pressure to us?!