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Could i ever afford a mortgage?

(8 Posts)
Blankiefan Tue 19-Mar-13 10:52:36

I don't know if this is good news or just depressing but my IFA told me last week that banks are quite happy to mortgage you now based on retiring at 75...

Mum2Fergus Mon 18-Mar-13 16:50:44

Definitely not too late...I was a FTB in February, and will be 45 in October, so never too late.

NatashaBee Mon 18-Mar-13 13:28:20

Message withdrawn at poster's request.

MorphsMum Mon 18-Mar-13 13:18:51

Thanks Cogito I will do that, appreciate your replies. Feel abit more optimistic now!

CogitoErgoSometimes Mon 18-Mar-13 11:53:26

(Sorry, thought you were just paying back a student loan rather than a debt plan)

Not too late at all. The main limitations are the working years you've got left. So if you're mid-forties with retirement age now being mid sixties or beyond you could still get a twenty year deal potentially. Still worth aiming for, I think. Being rent-free & mortgage-free, plus having an asset to sell or pass onto DCs in due course has to be a reasonable part of retirement planning.

The earlier you act, the better, of course because house-prices rarely stay depressed for long and rent never gets any lower. There are mortgage lenders that will talk to people with less than stellar credit ratings so maybe talk to some independent mortgage brokers and see what's actually possible.

MorphsMum Mon 18-Mar-13 10:40:50

Thanks Cogito.
I defaulted on all my debts in 2010, then went onto a repayment plan, that will be on my credit record for 6 years, i.e. until 2016 (as mentioned).
I could afford £400 per month as rent is more than that, and it would take me approx 3-4 years to save up £8K. Unfortunately, though I did qualify professionally, it's not possible to exercise the profession I chose with two small DCs (and stay sane...) so earnings are unlikely to jump up as I now work in a less skilled job and only PT due to school pick-ups etc. Child care costs will decrease in about 4 years' time...
Hmm, maybe it will be possible when I'm in my mid 40s - but is that too late for a first mortgage?

CogitoErgoSometimes Mon 18-Mar-13 10:20:29

Assuming today's prices and interest rates still apply you'll need £8,000+ as a deposit and the monthly payments would be around £400/month for a 25 year mortgage with a 90% LTV ratio. As long as you're paying off the student loan regularly and your debt record is good with no defaults and so forth, that should help your credit rating. If you're qualifying as a professional will your earnings jump up at some point? Will your child-care costs decrease?

MorphsMum Mon 18-Mar-13 08:20:34

Am 37, currently paying off large student/ professional loan on repayment plan (which will affect my credit record until at least 2016). Loans will be repaid end 2014, after which I should be able to save £2-£3K per annum.
Single with 2 DCs, not on any benefits except DLA.

Would i ever be able to get a mortgage?? Live in an area where house prices start around £80K.

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