News0 min ago
Paying Off Mortgage
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I need to pay £10,000 to pay off my mortgage in August (we have talked about this before but this is a bit different)
Now I have the £10,000 to pay it off but it will leave me very little savings.
Went to financial advisor about 2 weeks ago who has told me that I can borrow whatever I want ie perhaps 20,000 or 30,000 pay the £10,000 off and keep paying the mortgage and leaving me £20,000 better off monetary wiser off) I have no children and to tell you the truth to have a bit of paper saying that I own my house does not bother me cos the paper will be threw into the drawer).
What happens when I croak it - then house is sold eg Santander or any mortgage provider - will get their £30,000 back and if my house is worth let's say £100,000 then £70,000 will go back to my relatives I just think although I have talked over with friends too - I just feel why shouldn't I have the money in my pocket while I am alive - after all I am not going to enjoy the £70,000. Any advice please or snares I would not be aware off. thanks for any advice
Now I have the £10,000 to pay it off but it will leave me very little savings.
Went to financial advisor about 2 weeks ago who has told me that I can borrow whatever I want ie perhaps 20,000 or 30,000 pay the £10,000 off and keep paying the mortgage and leaving me £20,000 better off monetary wiser off) I have no children and to tell you the truth to have a bit of paper saying that I own my house does not bother me cos the paper will be threw into the drawer).
What happens when I croak it - then house is sold eg Santander or any mortgage provider - will get their £30,000 back and if my house is worth let's say £100,000 then £70,000 will go back to my relatives I just think although I have talked over with friends too - I just feel why shouldn't I have the money in my pocket while I am alive - after all I am not going to enjoy the £70,000. Any advice please or snares I would not be aware off. thanks for any advice
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For more on marking an answer as the "Best Answer", please visit our FAQ.Equity release can be a good idea in these circumstances. Things to be aware of though- the interest rate may be fairly high- say 7% pa, there may be a set-up fee of say £1000 plus legal costs, and the cash you get may mean your savings reach a point where you are no longer entitled to pension credit or housing benefit
thanks fiction - I dont get pension credit or housing benefit or any benefits. The equity question came up with the Financial Advisor and she started talk about going on to Equity when I became 70 years old. I couldn't take much more jargon just stayed with what I mentioned above. I receive a private pension which pretty much stopped me getting anything from the government.
I think it can still be worth doing if it gives you cash to hand for emergencies and for holidays and little extras without having to worry about the next heating bill.
But remember if you borrow £30000 interest only the interest at 7% pa would be around £40 a week.
I will find you a good guide to equity release- I'll attach a link later this evening
But remember if you borrow £30000 interest only the interest at 7% pa would be around £40 a week.
I will find you a good guide to equity release- I'll attach a link later this evening
I don't mean this in a harsh way but I do have plenty of nieces and nephews that one or two I bother with so I would not want all of very well earned money to go to them - I do know there are other things to do with the money but just feel it should be in my pocket rather than theirs - they don't do (nieces and nephews) any wonderful things for me - sorry for sounding mean. My will had been to brothers and one sister but like 2 brothers are dead and the other 2 are dead men walking - to leave a will to them would be stupid. They are too old - I made that will in 1994
Conne, I'm not trying to convince you, just saying what I think.
I'd pay off the mortgage with piece of mind knowing I don't 'rent' from the bank or anyone else. Then budget myself to save for going on vacations or treating myself to 'luxuries'.
This is what I did. Now everything I work for is all my own. Pay a few utility bills and that's it; all is mines. As I said, I hate debts.
I'd pay off the mortgage with piece of mind knowing I don't 'rent' from the bank or anyone else. Then budget myself to save for going on vacations or treating myself to 'luxuries'.
This is what I did. Now everything I work for is all my own. Pay a few utility bills and that's it; all is mines. As I said, I hate debts.
she actually gave me a quote for (note is downstairs) for paying hold on I will get note This is the note ie to borrow the payment back
£10,000 x 5 years - payment will be £78 per month
£20,000 x 12 years payment will be £170 per month
sorry that is the info I can read as she did scribble all around the page
£10,000 x 5 years - payment will be £78 per month
£20,000 x 12 years payment will be £170 per month
sorry that is the info I can read as she did scribble all around the page
society I know what you are saying but sure if I was to go tomorrow I haven't left debts - my house will be sold at quite a good price - £10,000 will be paid and the rest go to probably undeserving relatives. No I genuinely don't think I have debts over my head. All the money is in this house. I am a wealthy woman dead.