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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:
Adversecamber22 · 27/05/2019 09:56

We live in a very lovely house but could have afforded something very grand indeed. We looked and did find an amazing house, the garden was big enough to build a couple of houses on. We were also mortgage free and it did mean another mortgage though a much smaller one of about 100k. It had a dreadful survey so we walked away. I then became seriously ill and I’m lucky to be alive and was medically retired with a quite decent pension in my late forties. What newjobnerves writes is exactly what happened to me. I drive past our dream house, someone did buy it and has spent a considerable amount on sorting it out. DH and I are a little regretful but financially it’s a good job we didn’t go ahead.

If you have no garden would you consider getting an allotment?

Frankiestein402 · 27/05/2019 10:01

Got 10yr, 250k at age 56, a year or so after 2008 crash, on the basis that retirement at 65 could no longer be enforced and crash recovery ought to be coming, however anticipated retiring at 65 and paying off remaining mortgage with pension lump sum, worst case could extend and continue working.

Given size of repayment at time (~2k pcm) we took out fixed rate - as it happened rates stayed low so fixed actually cost more than variable would have. However did give peace of mind because at that age /state of economy I had no expectation of salary increase.
Ended up paying off residue at 64 after moving pension into flexible drawdown and taking tax free sum early (actual drawdown still not started)

On reflection decision was right for us at the time, money was tight for 8yrs and contingency virtually non existent but we were lucky and nothing significant cropped up - plus general economic chaos mitigated against big travel.

Making decision now - I think you have to take a position on the likelihood of another crash, austerity and brexit vote means we haven't really recovered from 2008 so next crash will be worse - what will happen to your job(s)/how long would you be willing to work?

NeverTwerkNaked · 27/05/2019 10:04

I would only do it if you are both very keen. You don't want one person resenting every big mortgage payment. If you both really want to it will probably be ok, but if one of you doesn't I wouldn't push for it.

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Original poster
BarkingUpTheWrongRoseBush · 27/05/2019 10:16

It’s me who wants a garden. I have an allotment but it’s a mile away. I love it but having a largish garden would mean I could potter about at home. We have a back yard that is full of plants.

I’d be v happy moving to a smaller less grand house with a garden. Dh doesn’t want anything less grand or big.

We’re not really on the same page.

OP posts:
Pinkbendyman · 27/05/2019 10:32

Or stay in our nice paid for home and go on nice holidays, retire early and do what we want.

^^ I would definitely do this.

BenWillbondsPants · 27/05/2019 10:39

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 probably wouldn't then. Did you post about this before OP, it's really familiar?

JaneGlorianaVillanueva · 27/05/2019 10:43

I think at that of you're getting £7500 in ever month after tax you should absolutely go for it, if your jobs are stable.

You'll have a lot of equity in the house, you'll have £100k in the bank if you need it, like you said you can rent your existing house out which as you've got no mortgage on it you'll make lot per month on top of the equity you have in it...

I think that if you live in a good area where the houses are likely to go up in value over time then go for it!

JaneGlorianaVillanueva · 27/05/2019 10:49

Ah think I misread your post and that you wouldn't be keeping your current house to rent out as well. That does change things. I'm not sure I would! I think I'd consider moving and getting another mortgage in your circumstances but not with that big if a jump from no mortgage to 300k.

titchy · 27/05/2019 10:55

Given your incomes and the fact that you have £200k savings I'd say go for it.

Out of interest if your plan was to rent the current house out and travel, why couldn't you do that with the new one?

Kez200 · 27/05/2019 10:56

This is what we are doing. Saving like Billy oh. If house prices drop so the huge move up is much cheaper we will use savings to do it in next 10 years. If not we will stay put.

WhoAteMyNuts · 27/05/2019 11:06

No I wouldn't move.

I think you are mad to consider it given that you have already gone through redundancy.

What happens if one of you is too ill to work? No one likes to think of illness but it happens and is more likely to as we get older.

I am mortgage free and wouldn't change it for anything but then I value the freedom that gives me over a bigger house or garden.

Guylian2019 · 27/05/2019 11:24

Crazy plan for a garden.

Original poster
BarkingUpTheWrongRoseBush · 27/05/2019 11:28

Theres been a couple of similar posts recently which have added to my pondering. If we rent out new house it would be to pay off mortgage. If we went out old house and don't buy new house that would be too fund fucking off and travelling.

The getting older and more likely to be ill is worrying me. But ....I've got good workplace cover for illness and early ill health retirement. DH doesn't.

It wouldn't be a completely stupid thing to do. But...it obviously leaves us in a more vulnerable position than now.

OP posts:
Original poster
BarkingUpTheWrongRoseBush · 27/05/2019 11:29

guylian yep...!

OP posts:
Dowser · 27/05/2019 11:30

I’d stay where you are and get a country cottage or static caravan or tourer
£300k can buy you a lot
It’s lovely to be mortgage free
We were at 51

mindproject · 27/05/2019 11:31

I would do almost anything for my dream house. I think you should go for it.

DramaAlpaca · 27/05/2019 11:34

A word of warning about the garden. Ours is huge, it's lovely & we are very lucky to have it but oh, the upkeep... we didn't mind so much when we were younger, but now, in our mid-50s & both still in demanding full time jobs, it's hard work.

WhoAteMyNuts · 27/05/2019 11:34

I have good workplace sickness and critical illness cover but it wouldn't be enough to fund a 300k mortgage for 10 years on top of the extra expense of a long term illness such as heart attack or cancer treatment.

The chance of you needing it are low BUT shit happens as you know from DH redundancy. What happens if that occurs again and the job markets plummet? What happens if you or he has a serious illness, the cover and savings should help you manage the logistics and extra expense of that if you stay put rather than just trying to stay afloat with your mortgage.

It's a gamble and only you can decide whether to gamble or not on getting a bigger garden versus better financial security.

harajukubabe · 27/05/2019 11:36

Depends.

Are you about 55 OP?

If you are going to get stretched on 300k more, from your income it seems doable.

A garden to potter around in in your retirement is huge. I would do it.

What's the worst that can happen? Can u weather it? Seems you can with the savings you have. I would do it.

BrexitLetsCalltheWholeThingoff · 27/05/2019 11:41

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

@mysteryfairy - Or you could let someone who can only afford a little terrace buy it. When you want to actually live in one, you can sell your big house, buy a little terrace and move in.

Dowser · 27/05/2019 11:45

We are at our static now and have Ben here since Wednesday. Stopping here till tues night . We’ve already stayed enough nights this year to pay for our ground rent of £2000 if we were paying for a travelodge at just £50 a night
I’ve had grandchildren stay, cousin stay but mostly it’s just two of us
We could cultivate the area around it but haven’t bothered
We are the end pitch overlooking a meadow...lovely
We’ve spent days in Harrogate, york, Ripon, Northallerton or just roaming the country lanes that are looking beautiful this year.

There’s a farm up the road where we get our chukky and ducky eggs and their mare has a brand new foal we go along to see. Loads of pheasants are about, hares and rabbits, chickens roam the site, wild geese fly over head, there’s a beautiful lake 5 miles up the road teeming with geese, ducks, swans and occasionally you’ll see deer crossing the road.

Our static is home from home. Central heating and double glazed. We bought second hand and we refurbed it to our taste.

Honestly I feel like I’ve died and landed in heaven
Only an hour from home so not taxing getting there and back
You must pick your site with care though. There’s nothing on ours and we are often the only ones here. Just as we like it.

If it goes tits up we can walk away without being financially ruined.

BrexitLetsCalltheWholeThingoff · 27/05/2019 11:47

@Dowser- I get the feeling OP's DH isn't the type to enjoy staying in a static caravan Smile

Ursaminor · 27/05/2019 11:58

A point to note in your planning - if you have a mortgage, you have to get the lender's permission before you can rent. And they can refuse. Or insist you remorgage as a buy to let. Something to bear in mind.

thebabessavedme · 27/05/2019 12:16

56 and mortgage free here, no way would we take on a large debt now, we downsized from a pretty large 4 bed to a 2 bed modern apartment and like dowser have a static, ours is in the wilds of east anglia, also get to have 'nice' holidays, last year maurituis. the best part of feeling this secure is that dh has felt for the first time in years he can take a few chances with his business and is renergised after having to stay 'safe' for many years. the bottom line is, there are now just the two of us, why in the hell pay out for rooms and 'space' you hardly ever use. i did manage to fit 9 round my christmas table last year and enjoyed doing it, I also liked the thought that i could pay to take everyone out for christmas lunch if i felt like it!

Singlenotsingle · 27/05/2019 12:28

I'd go for it! On that sort of income, you could easily afford it. You might never get the chance again!

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