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Original poster

Mortgage is it worth it?

27 replies

Todayisgood2 · 13/12/2020 18:33

What are the chances of getting a mortgage just turned 40? Looking to get it in a years time. Both full time and combined salary around 90000. Any advice? 25 years mortgage at our age seems a bit risky?

OP posts:

NovemberR · 13/12/2020 18:35

I don't see why not, if you can afford it.

You'll have paid it off by 65. Or you can still be paying rent aged 85 perhaps...

HollowTalk · 13/12/2020 18:35

I would definitely get one if possible and I'd try to overpay a bit each month, too. You'll be working into your 60s but then you'll be rent and mortgage free by the time you retire.

How much rent do you pay now and how much do you want to borrow? Do you have a deposit?

dane8 · 13/12/2020 18:42

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General money

Oddbutnotodd · 13/12/2020 18:43

I think you need to educate yourself around money in general. Why wouldn’t you get a mortgage with such a good salary? With that income you can borrow a fair amount. Do you have savings for a deposit? In 20 or so years you will have probably paid it off and then can live rent/mortgage free. Interest rates are really low now. Pay off as much capital as quickly as you can. Don’t go for an interest only loan.

CarpetTime · 13/12/2020 18:44

This is the second thread we’ve had asking this question this week.

It’s a totally bizarre question to ask

iftherewereahorseyinthehouse · 13/12/2020 18:46

It will be fine, 25 year term til earliest retirement. I know some banks used to be a bit cagey about lending in longer terms later in life but let's face it, we'll be lucky if we retire before 70.

MissFitton · 13/12/2020 18:47

I managed to get a mortgage aged 41 as a lone parent with a relatively low income. I now pay less in mortgage payments than my ex-h pays in rent.
I'm also able to overpay a little each month which will help long term.
Frankly, on your income, I don't know why you would think it wouldn't be an option?

Thatwentbadly · 13/12/2020 18:48

Yep it’s worth it. In your retirement it means you will be rent free.

Pipandmum · 13/12/2020 18:48

You should try and pay it off sooner than 25 years anyway. But you can get a shorter term (and longer) loan. I just got one and I'm...58.

BackforGood · 13/12/2020 18:48

What Oddbutnotodd and CarpetTime said.

How have you got to your age, and that kind of salary combination without having looked seriously into this sort of question?

christmasathomeagain · 13/12/2020 18:50

@NovemberR

I don't see why not, if you can afford it.

You'll have paid it off by 65. Or you can still be paying rent aged 85 perhaps...

Yes this- if a mortgage at 65 scares then what does rent at 85 do to you?

OnlyFoolsnMothers · 13/12/2020 18:51

What christmasathomeagain said 100%

BasinHaircut · 13/12/2020 18:56

I think the size of a first mortgage these days is enough to scare anyone and plant a seed of doubt but you have to pay to live somewhere, unless you see yourself moving around every couple of years why wouldn’t you?

Obviously there are benefits of renting such as having someone else responsible for big expenses such as new boilers and roof repairs, but that’s a bit short sighted when, as PP’s say, you think about what you might do in retirement when the landlord wants 2k a month rent and you have to move to butt fuck nowhere to make ends meet.

NovemberR · 13/12/2020 18:59

I say this as a person whose grandparents had very different attitudes. GP1 - steelworker in the 1930s, bought their terraced house and in old age in the 1970s managed very nicely on a state Old Age Pension. It was probably the best off they'd been and they could enjoy a few little luxuries.

GP2 - had been a teacher. Thought that owning a house meant you had the worry of maintaining it/doing DIY. Rented the same property from a private landlord (3 bed semi) from the 1940s. They spent their old age struggling - their teaching pension on top of their state pension meant they were not entitled to claim anything and they were still paying rent every month on a house they had lived in for 57 years. They'd paid that mortgage - for someone else - twice over. Money was tight and they had to think about whether they could afford to put their heating on in the day time.

It made me scrimp and scrape a deposit up as early as I could.

shallbe · 13/12/2020 18:59

I think you'll find it's pretty common for 30-somethings to take out 35 year mortgages these days. What you're doing really isn't that unusual and much better than the alternative in my opinion.

wirldsgonemad · 13/12/2020 19:01

Yes get one, rent is usually more than a mortgage.

Wibblewobble99 · 13/12/2020 19:03

Op I wouldn’t worry too much about the term - just make sure you get a mortgage that you can overpay on. Due to an inheritance we just overpayed £15k on ours (wasn’t going to get interest seemed to be the best use) and it’s taken 4 years off the term. Just goes to show you how much interest you’re actually paying. If you can overpay you are hopefully not going to still be paying it off when you’re 65

Donotgogentle · 13/12/2020 19:03

We’ve just taken out a 25 year mortgage at age 48.

Hopefully will pay it off early but renting in retirement seems a precarious position to be in.

Donotgogentle · 13/12/2020 19:04

The mortgage company did ask us about our pension provision. We also had a 50% deposit.

hohohopeless · 13/12/2020 19:07

Yes- it is definitely worth it.

You'll likely be working for another 25 years anyway - so go for it.

You have a good income between you - buy something sensible that you don't have to worry about paying off, and as said above try to make overpayments to reduce the term.

Renting is dead money.

Newwayofthinking · 13/12/2020 19:09

I have taken out a mortgage at 49 for 15yrs, £100,000, put down £30,000 deposit.

I earn 26,000 per annum

ChasingRainbows19 · 13/12/2020 19:16

No reason not to if you can afford it etc.

We got a mortgage at 37/38 tho we had a large deposit and are overpaying as we bought way lower than our max. I’m keen to secure it as fully ours way before the 25 years. I’m aware of better ways to invest money but I’d rather have the security of the house being paid for.

MrsT1405 · 13/12/2020 19:24

We got a second mortgage last year at the ages of 68 and 69. We both have good pensions and we won't loose our jobs! It was to facilitate selling and buying a downsize home. Luckliy we will be able to pay both off next month. But it was a very easy process and we could afford it. Rates are very low at the moment.

Heyahun · 13/12/2020 19:24

My husband is 42 and they gave us a mortgage term of 27 years just last week!

We will eventually lower the years though - we have 2 years fixed term - We reckon we keep saving for those 2 years while in our new house (we usually manage to save about 1500 a month between us) - remortgage at that point and lower the number of years as we will have a chunk more money to put into it then at the remortgaging time

We definitely won’t actually be paying it for 27 years

Blobby10 · 13/12/2020 19:28

I got a mortgage aged 50 last year! Repayment time is only 17 years ie when I retire but at 40 you could still get a 25 year one easily

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