We’ve put a deposit down on a house and cleared some debts. Is this a sensible thing to do? We’re keeping hold of our flat and letting it. I feel like maybe I should be doing something different. Suz xx
Clearing debts is always a good idea, as in general, you will be paying more interest on them than you could receive by investing the money. For me, I had already paid off the mortgage, so I invested all of it against the day I can no longer work. I am single, no family, so there won’t be another source of income if mine stops. If I didn’t already have a house, I would certainly consider it, although I’d be a bit worried about whether my choice would still meet my needs in years to come. But no more worried than I am about whether my existing house will! If I was buying now, I might look for a bungalow, or at least somewhere with a downstairs loo, in case I can’t manage the stairs. But as it is, I’ve got stairs, and stuck with 'em. I suppose if I eventually can’t manage, there’s always adaptations or moving, in that order. I’d start off with a stairlift first, and see how that goes. But even modest adaptations like that aren’t cheap, which is why I’ve put the money away. I don’t think there’s a “right” answer - just depends what your objectives are. Also depends whether you have a reasonably secure second income from someone else in the family. Tina
Hi Suz
We discused my CI payment last year and finally this January it paid out. I paid off my mortgage in full and had £500 left over which we spent on our newly decorated living room. We had actually saved additional money as we had re-mortgaged since taking out the policy, so we spent the other £5k too, it felt amazin!!!
Do what you will with it, in my eyes it was free money and should be spent!!! I agree with Tina regarding investment, but have a wee splurge too. Hopefully you’ll have many more working days to come with a steady income and a new mortgage won’t be a problem to repay.
Don’t feel that you have done the wrong thing, just see it as an opportunity that has came from this horrible shitty illness and enjoy it, i am!!
All the best and enjoy decorating.
Paula xx
It’s so frivolous but I took the family to Florida.
I had a husband in a good job at the time and money was not really a problem – my payout was only a few thousand so I spent it!
Looking back now that I am single and living on benefits would I have done anything differently.
Not likely! I’m glad that I have those wonderful memories of a very special holiday while I was well enough to really enjoy it. It was a golden 3 weeks and I often think about it when it’s cold and grey.
Jane
Please excuse my ignorance with this subject but is the critical illness insurance included in your mortgage and can you put in a claim when diagnosed with MS?? I might be grasping at straws but things have been difficult since being diagnosed. Thanks for any help x
downstairs toilet, that we didnt have revamp kitchen always dreamed of a small holiday couldnt pay morgage off due to my policy covering half of morgage and my husband the other half, didnt realise at the time . samix
For my own part it was an insurance policy that I paid into. It was only small because when I took it out “it will never happen to me”
Some people do have mortgage protection insurance that kicks in with MS but I didn’t - again “it will never happen to me”
Jane
It is definitely worth checking to see whether you signed up for critical illness cover at the same time as taking out the mortgage. This is often offered as an option, for a small extra payment. Not an option I chose to take, alas, but hey, you live and learn!
Alison
x
Thanks for your help and advice I will start looking into it Alyson x
Yeah, it does depend what cover you have. It’s the life insurance policy that you usually take out when you get a mortgage. Cover is usually for critical illness or death. You can also have additional cover, such as job loss. For the critical illness, if you have that cover, there should be a list of critical illnesses that are included. I guess it depends on your provider, as to what is and isn’t included as a critical illness. If you find out you are covered, again I guess it depends on your provider. For me I had to have had a sensory or mobility episode that lasted for at least 6 months, in order for the money to be awarded. Hope this helps. Gill
I bought a bungalow but had to take out extra mortgage to do so. Now Im getting on a bit, looking back its made life a lot easier. Im currently searching for another bungalow which takes into account my future needs (forgot those) (so anyone thinking of doing this, please write down a list of possible future requirements as I didnt - space required outside, room to extend and access).
Love my little place, but my needs have changed, my fault for not thinking ahead. The positive thing about CI is it gave me the chance to try resolve my disability issues without too much nail biting, Im ever so glad I took out the policy. My father suffered bad heart problems, so there was me thinking I might suffer similar, never thinking I would be diagnosed with something like ms! Indeed it too was covered.
At least I forward thought whilst taking out a small mortgage and shall have to do from now on.
bren
x
I was talked into taking this policy out by my Banks financial adviser. I think it was to run until my youngest child was 18 as a sort of life policy for them to benefit should I die but now it has been paid out to me and it has been used for me to live on for the last 3 years. I am in receipt of ESA,DLA and a small pension which covers the rent and council tax, so I need to dip into the insurance money each month for everything else
I paid off all debts credit cards and loans, but there was not enough to put down on a house, nor would I have got a mortgage now. When it runs out maybe I will be able to get a council house, until then I will not worry
I would love to go on holiday just to treat myself, but I dont think I could do it now
jax
I chose not to buy a property as I found out the hard way years ago that when you are out of work there is very little help available to pay your mortgage whereas if you rent you can get your rent paid. Cynical I know but that is my experience which is all I can base my opinion on. Since then I have rented but had kept on the critical illness policy, which like a previous poster I had taken out due to a family history of heart attacks, and had never considered something like MS!
I used my payout to pay off my debts, bought myself an automatic car and treated my son and I to a holiday as we hadn’t been able to afford one for several years. I have invested the rest for my future although I will probably dip into it a bit this year as Jamie, my son, plans to leave for Uni in autumn and I want to downsize to a home with no garden as I cannot manage it now. I will need to use a removal firm for the first time ever as there aren’t enough fit, healthy men left in the family to help me move and I also want to treat us to things like a new washing machine, cooker, sofa etc so our new home will be set to last us for several years. It is so nice to have the money available to be able to do this! I plan to find a bungalow or a flat so if I have another bad relapse which affects my mobility for a while I can manage indoors a lot easier. I’m in a cottage at the moment with steep stairs which are unsuitable for a stairlift to be fitted and I had to be admitted to hospital for a week for IV steroids to improve my walking before they would let me come home as I was a danger to myself on these stairs! I figure if I move somewhere more practical I would be able to stay at home as groceries can be delivered and friends/family can deliver medication etc if I am unable to get out. I’m keen for Jamie to spread his wings after Uni and go off to live his life so if he knows I am somewhere secure and safe and doesn’t have to worry about me this will make it easier for him.
Alyson - check your paperwork and if you think you may be covered put a claim in!
Tracey
paid my mortgage of with mine and still had a few bob left for a couple of nice holidays. having no debt around my neck is like having a big weight of my shoulders. now i can get on with whats important to me…my wife and children!