Mortgage Rate Rises

Foghorn Leghorn said:
Ouch :(

In that situation I'd have no choice but to sell and try to downsize. When we moved 5 years ago I extended our mortgage term but kept up the higher payments purely so if the **** hit the fan I knew I could reduce payments back down, and with First Direct there's no limit to the overpayment.
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Honestly the properly prices haven’t dropped here. Yet. But we currently throw £2k towards it each month with overpayment included. I’m hoping that worst case scenario we manage the squeeze into that £2k bracket and just write off the monthly overpayment. That way we’d still spend the “same” but end up with no overpayment. Which is a shame but at least our monthly outgoings would stay the same.
 
TheOracle said:
When does everyone think they'll be able to retire :confused:
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Unfortunately to keep my mortgage increase to below a grand I've had to add 2 more years onto my retirement date :(. 57 now if things stay stead. 53 if I can work a bit harder.
 
The core issue is that not everyone can just get a better job. Society runs on the idea that we need bin men and we need doctors and lawyers. We can't have London full of only doctors and lawyers and the north only full of bin men.

More and more, people are getting serious financial help from their parents or require insanely well paid jobs to afford the sort of houses that were attainable on a single salary from a much lower paid (relatively speaking) job.

Thats not a good thing. People also tend to massively underestimate the effect of luck on their outcome in life. Just because you have worked hard doesn't mean you are deserving of your 6 figure salary. There will be countless people who have worked harder than you and not come close. There are always exceptions to every rule but that doesn't change the rule.

200sols said:
Sounds like 3 camps.
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This is why he gets paid the big bucks. Boss says "dLockers, I need 2 ideas" and he gives them 3.
 
dlockers said:
Unfortunately to keep my mortgage increase to below a grand I've had to add 2 more years onto my retirement date :(. 57 now if things stay stead. 53 if I can work a bit harder.
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Do you have kids? If so, how much consideration for how much you want to pass them is in that number?

If I had no kids, I could plan to retire probably 50. With the cost of nippers [3 of them] (for arguments sake, not doing private school in this example), it's more like 55. And then if I think I want to leave them a decent start behind as opposed to living off my pension/savings and dwindling it down in retirement, then it becomes unbounded, but probably at least 60 and more like 65 makes sense.
 
dl8860 said:
Do you have kids? If so, how much consideration for how much you want to pass them is in that number?

If I had no kids, I could plan to retire probably 50. With the cost of nippers [3 of them] (for arguments sake, not doing private school in this example), it's more like 55. And then if I think I want to leave them a decent start behind as opposed to living off my pension/savings and dwindling it down in retirement, then it becomes unbounded, but probably at least 60 and more like 65 makes sense.
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Kids always cost more than you think
 
TheOracle said:
When does everyone think they'll be able to retire :confused:
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Without inheritance? Probably 60s
With inheritance probably 60 something.

I hope to pay off my 23 year mortgage (200k) in half that time. Which would put me at 50. If I and my partner all my isa directed money into it, it'd be paid off in 10 years I think. Maybe less. But not willing to sacrifice life that much.


But who knows what inflation will do long term, and with no nhs and declining health, etc etc it's too hard to know.
AI/automation might take my job for example or decimate my earnings.

Best case for me I think is 60.
Mortgage free at 50.


No kids so that throws a curve ball. Saves cost now, but also means have to think about dieing with as little cash as possible! :D
 
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fez said:
The core issue is that not everyone can just get a better job. Society runs on the idea that we need bin men and we need doctors and lawyers. We can't have London full of only doctors and lawyers and the north only full of bin men.

More and more, people are getting serious financial help from their parents or require insanely well paid jobs to afford the sort of houses that were attainable on a single salary from a much lower paid (relatively speaking) job.

Thats not a good thing. People also tend to massively underestimate the effect of luck on their outcome in life. Just because you have worked hard doesn't mean you are deserving of your 6 figure salary. There will be countless people who have worked harder than you and not come close. There are always exceptions to every rule but that doesn't change the rule.
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The really obvious point is that the pay gap between the top and bottom used to be much closer. A bin man could also work full time and afford an average house, two kids and a partner that didn’t need to work.

Now you’re lucky if you can afford to rent a place with two of you working full time and no kids. Wages at the top have grown significantly faster than at the bottom.
 
Ooh. Edit. I think could be mortgage free in 7 years if put absolutely everything into it. (even without my partners contribution).
Just put numbers into calculator

So maybe early retirement is more possible than I thought.

In reality in hoping for 10-13 years left of mortgage. As I'm going to have holidays etc
 
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b0rn2sk8 said:
The really obvious point is that the pay gap between the top and bottom used to be much closer. A bin man could also work full time and afford an average house, two kids and a partner that didn’t need to work.

Now you’re lucky if you can afford to rent a place with two of you working full time and no kids. Wages at the top have grown significantly faster than at the bottom.
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If you can't escape those bottom jobs you have to have beneficial circumstances (live in a very cheap area) to escape the rent trap if you also want a resemblance of a life.

Exec pay makes for depressing reading
 
dl8860 said:
Do you have kids? If so, how much consideration for how much you want to pass them is in that number?

If I had no kids, I could plan to retire probably 50. With the cost of nippers [3 of them] (for arguments sake, not doing private school in this example), it's more like 55. And then if I think I want to leave them a decent start behind as opposed to living off my pension/savings and dwindling it down in retirement, then it becomes unbounded, but probably at least 60 and more like 65 makes sense.
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My 3 yo has more free cash flow than me at the moment..so nothing major but I'm going to make sure she has it easier than me and not hold it against her.
 
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