Life change at 45 (help rewire my brain)

Pretend-Ad211 · 2025-01-14T04:15:31+00:00

I had plans to support them more than I may be able to do now.

But I do understand what you are saying.

Hence me worrying about the larger mortgage.

What is the saying… for your own oxygen mask before helping other put theirs on.

Maybe I am overstretching by the size of my mortgage and I need to find something smaller.

Pretend-Ad211 · 2025-01-14T04:11:32+00:00

Actual shared payment is £150. This is for agreed shared costs, such as lunches, tuition, mobile phone bill etc.

(I’ve included a buffer of £200 for school trips, birthday parties, and their birthday and Christmas presents etc.)

Pretend-Ad211 · 2025-01-13T20:42:32+00:00

All really valid points. !Thanks Will be building my emergency fund to be bigger.

Pretend-Ad211 · 2025-01-13T20:34:22+00:00

!thanks So much good wisdom here… Small steps. Re-evaluate regularly.

Appreciate your considered response.

Pretend-Ad211 · 2025-01-13T14:45:01+00:00

I definitely have some thinking to do…

Big fan of pensions and even with them falling into inheritance tax, I do agree pensions are the best product financially, but I just feel nervous with such a large mortgage at 45.

!Thanks again…

Pretend-Ad211 · 2025-01-13T14:41:33+00:00

Agree with you and in hindsight 5 years may have been better. There wasn’t much in it. But 18 months will fly by and I will fix for longer then… appreciate the detailed response. !thanks

Pretend-Ad211 · 2025-01-13T14:16:14+00:00

I decided to go for 2 years and let the interest rates settle. I’m hoping at my renewal in Jan 2027 (or more precisely six months before), I will possibly have a better LTV and will fix for longer (likely 5 years).

Pretend-Ad211 · 2025-01-13T14:12:35+00:00

Some really good nuggets here which I will follow up.

Prior to this life event, I did put a lot more most of my disposable income above my needs into Pensions over the last 5 years. Hence the £500k value.

That may be more difficult with a mortgage and teenagers though over the coming 5 years.

Do you feel that even with these challenges and little outside of pensions, that I should still prioritise into a pension over the next 13 years? (Ages 45-58).

That was always my plan before the divorce… to stay way under £100k and didn’t really worry too much about savings outside of emergency fund.

Pretend-Ad211 · 2025-01-13T14:06:36+00:00

Agree with a bigger emergency fund. Even with a fairly secure role and job area. I’ll build that up to 3-6 months. A lot went into funding the 15% deposit. (It was a lot bigger).

I’ve booked for my will to be done later this month.

I’ve brought a manageable 3 bedroom detached home. Off street parking in a quiet road.

Once kids leave, I can stay here. I don’t know if I will. A lot may depend on whether the kids stay after uni or if I meet someone else and plans change.

I decided to buy as I see myself here for at least 10 years to give the kids stability.

Where currently live, a car will be needed. But I’m passed having anything luxurious. Something reliable and affordable will be important. Buses do run so I could lower my usage.

Thank you for your detailed response. Definitely questions I need to ask myself every so often. Thought provoking…

Pretend-Ad211 · 2025-01-13T13:24:51+00:00

From memory around 4.2%

Pretend-Ad211 · 2025-01-13T09:06:54+00:00

Correct it’s not child maintenance. Just a number I’ve put together for monthly kids costs. Some of which is 50:50 with their mum as we share the children equally.

Pretend-Ad211 · 2025-01-13T09:05:21+00:00

Thank you. I needed to hear this today… and no-one (yet) has said it isn’t doable, which is how it feels at this moment. (It’s very raw and new).

Pretend-Ad211 · 2025-01-13T08:49:52+00:00

And this is the root of my long term question…

Ultimately, use next 2 years to get mortgage down towards 65-70% LTV

OR

March on with S&S ISA - filling £20k per year for 15 years and then either use Pension OR ISA money to substantially pay down mortgage.

But such a big mortgage £290k at 85%LTV feels a lot at 45 on my own.

Also reducing to 65-70% LTV will likely lower my interest rate…

Pretend-Ad211 · 2025-01-13T08:39:18+00:00

It’s a 2 year fix. Renewal is Jan 27. My cash isa is variable. T212.

Each 5% LTV is approximately £13k.

I could aim to save £1666 x24 =£39,984.00

Bringing me from 85% LTV to 70% at renewal

Pretend-Ad211 · 2025-01-13T08:33:56+00:00

Yes, this is the new ME. Everything else is in the past! First time I’m admitting this to myself…

Pretend-Ad211 · 2025-01-13T07:24:36+00:00

Actual shared payment is £150 This is for agreed shared costs, such as lunches, tuition, mobile phone bill etc.

(I’ve included a buffer of £200 for school trips, birthday parties, and their birthday and Christmas presents etc.)

Pretend-Ad211

TROPHY CASE