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Original poster

Getting a 300k mortgage at 50...

64 replies

BarkingUpTheWrongRoseBush · 27/05/2019 08:38

We’re mortgage free in a nice terraced house. A lovely detached with period features, off road parking, sun room and a much longed for garden has come up round the corner.

We can afford the mortgage over 10 years. But it means no option of retiring before 60 whereas now I could go part time or finish and take pension at 55.

Dh lost his job last year and was unemployed for a year...no mortgage meant that was less stressful.

Are we mad to even be thinking about it?

OP posts:

OneRingToRuleThemAll · 27/05/2019 08:40

Is that an additional £300k? That's a huge extra mortgage. It's up to you but I'd be living mortgage free at your age not taking on a whole new mortgage.

needsahouseboy · 27/05/2019 08:42

I’ll be paying my mortgage until I’m 68 and you will have lots of equity. If it’s your dream home then go for it if you think your jobs are secure enough.

MeanMrMustardSeed · 27/05/2019 08:43

Totally depends what your household income is. At under £100k, you’d be mad, I’d think. But if you’re both earning big bucks then go for it.

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RicStar · 27/05/2019 08:44

Those are going to be large mortgage payments over 10 years which I would find stressful but without knowing your income / jobs it's hard to say. For example if one of you is in a partner in a successful gp practice then it's probably fine.

TooTrueToBeGood · 27/05/2019 08:45

Unless you're so unhappy where you are, and it doesn't sound like it, I think it would be a poor choice. You have limited working life ahead of you, you're both of an age where it can be difficult to get another job in the event of redundancy, interest rates are highly likely to go up and with so much political and economic uncertainty there is a good chance of a sustained decline in property values. You'd be taking a big gamble with downsides that far outweigh the upsides IMHO.

Drogosnextwife · 27/05/2019 08:45

For a house? Yes I think that's mad.

MrsMozartMkII · 27/05/2019 08:47

Can you afford the upkeep in your retirement years?

peanutbutterismydownfall · 27/05/2019 08:48

There are lots of factors you haven't mentioned. Are you on final salary pensions? Are you anticipating any inheritances in the next few years? Do you have DC and, if so, have they successfully left home or might they need support over coming years?
I think the thing which would really put me off would be having to pay stamp
duty on what could be a shorter term move.

Original poster

BarkingUpTheWrongRoseBush · 27/05/2019 09:08

We’ve got £7.5k coming in a month after tax. Minimal outgoings. Dh has one kid with a year to go at uni.

Both got savings totalling about 100k. Which we aren’t intending for the house, that’s our ‘in case’ fund.

We’ve got pensions.

But in my head at the mo I have the idea we could rent out our existing house, I could leave my job in 5 years and fuck off round the world....I’m not sure that is actually going to happen....

OP posts:

GreyGardens88 · 27/05/2019 09:11

Could you sell and move to a cheaper area for your garden? I wouldn't want to be worrying about a mortgage in my 60s

Landlubber2019 · 27/05/2019 09:12

I wouldn't take on that mortgage at that age.... I would consider using the savings and getting a small mortgage assuming both jobs are secure.

BBBear · 27/05/2019 09:15

I wouldn’t do it. Enjoy being mortgage free.

Original poster

BarkingUpTheWrongRoseBush · 27/05/2019 09:18

There’s family reasons for staying in the area also we can both walk to work...dh unwilling to give that up. So a house as nice as we live in but with a garden is £250 to £300k more...

I think it’s about what kind of future we want. So we could use the money on a nice forever home. Or stay in our nice paid for home and go on nice holidays, retire early and do what we want.

OP posts:

BenWillbondsPants · 27/05/2019 09:20

In your circumstances, I probably would. Particularly if you are intending to keep your existing home. If it goes tits up, you could sell the new place and move back to your exisiting home. Providing you give any tenants plenty of notice.

BenWillbondsPants · 27/05/2019 09:21

I should add that I would prob do this - only if having this new house would outweigh everything else.

beeyourself · 27/05/2019 09:22

I wouldn't. I'm counting down to paying off my mortgage and can't wait for the (financial) freedom that would give me. Tying yourself to a mortgage/job for another 10 years just to have a bigger house is madness in my view

DrDreReturns · 27/05/2019 09:22

Could you cope with the repayments if interest rates went up a lot? I don't mean to be negative but its something people should consider when taking out a mortgage.

Soola · 27/05/2019 09:25

I wouldn’t do it. 50 is not old but I’ve noticed in that age group onwards it’s the time when health problems may start to appear.

newjobnerves · 27/05/2019 09:29

I don't even want that size mortgage now in my 30s! Is there a compromise? That's a huge mortgage, what if one of you gets ill or unemployed again? Statistically it's more likely to happen the older you get (ill health I mean) so it's quite a risk. Perhaps there's a middle road?

newjobnerves · 27/05/2019 09:29

If you do it, you could get a 10 year fix, Nationwide do them.

Original poster

BarkingUpTheWrongRoseBush · 27/05/2019 09:30

We’d have to sell to afford new house. The renting it out and travelling round the world idea is if we stay in current house.

I’m more up for that than DP though...

OP posts:

bollocksitshappenedagain · 27/05/2019 09:30

I am about to remortgage at late forties for 3/4 of that amount due to divorce with not as much money coming in.

It's terrifying me!

moralminority · 27/05/2019 09:31

I'd probably do it but would get an offset mortgage so you wouldn't pay interest on the 100k savings which would be offset which will save you money (obv you don't get interest on them either though). You can overpay too. We had an offset mortgage and it was the best thing since sliced bread for us.

Applesbananaspears · 27/05/2019 09:32

I would yes, a house is an asset, long term you’ll have a far bigger pot of money to retire on as you can downsize again and release money

mysteryfairy · 27/05/2019 09:55

If you put the mortgage repayments in a SIPP or similar for the next ten years there’s a good chance that would grow faster than a property so I wouldn’t do it on the basis it’s the best way to save.

I’m 47 and live in a lovely ‘forever’ house with a big garden which I do love. BUT it’s hard to keep up with the garden and I feel constantly guilty about it. I have a weekly gardener to help. I have three DC, but two in their 20s have left home and DC3 is 17 so often out, at her boyfriends etc etc. DH is away in the week. I often feel quite oppressed when I’m sat in my regular spot at the very back corner of our kitchen (it’s a stereotypical big extension with bifolds to back and the only downstairs room I need/use) at the thought of all the empty house - so many rooms that no one sets foot in most weeks except to clean. I do appreciate this is a very my diamond shoes are too tight type emotion! Ironically I’ve started a conversation with DH about buying a little terrace with just a yard as a future house, thinking we could rent it out now and then move in future.

I honestly think your keep the existing house and downsize career/have more experienced sounds very attractive.

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