To be contemplating taking on a large mortgage in my 50's?

[MrsPatmore]

I think this will be our last chance to trade up property wise. Live in SE London. Joint salary 80K. Jobs very secure (public sector) but I'm worried about if we get ill etc. The mortgage would be 220K (would be 50% LTV) and would take us too age 70 but the plan is to downsize to the coast a couple of years before that so we would live in it for 17 years. Have good pension provision and savings for ds university should he wish to go but no house deposit for him (possible substantial inheritance but not banking on that.)

If times get tough, thinking we could get language students/lodger. I can also work weekends etc. Quite desperate to move.

If you manage to get the mortgage, I'd get language students in asap and use that money to over-pay your mortgage.

I must admit I wouldn't but what are the circumstances of where you live? Is it lack of space, dreadful neighbours?

I would only contemplate if whatever was an issue was hazardous to my physical or mental health.

Have you ever lived by the seaside in winter? I grew up at the seaside and it is utterly depressing when the weather is bad, the tourists have gone and lots of things shut.

Current house tiny, step into the living room from the street with downstairs bathroom - bit depressing and really don't want to stay here until retirement. Not much chance to add value - would rather use the money to move. Just seeing an opportunity now prices reducing a bit to get a modest house in our preferred area. Potentially I could earn an extra £10K but would have to take on a much more stressful role. Would rather work ad hoc at the weekends/cut back spending.

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I did it in my late 40s. It feels worth it. Whenever I worry about the what ifs I just remind myself that I can always move again and on that LTV you are unlikely to end up in negative equity.

We just did it, I had anxiety attacks in the middle of the night thinking about it before it happened but now I'm so happy we did.

I would;t like to take on a new mortgage in late 40s / 50s but if it was a case of being cash buyers would be different. Could you pay off current mortgage early and do that perhaps.

We just did it, at 52 and 58!

We too have lived in a dolls house for nearly 20 years!

We now have a big house and a much bigger mortgage! We have also gone the whole hog and bought near the sea.

Yes, I do worry about interest rates (we got a 5 year fix which was much more expensive) and illness too. But I just thought we only live once. And I wanted to make the equity we have built up work for us.

But what would happen if you can't keep up the repayments? It's surely more likely to get ill in older ages. Sorry that would stress me out.

You might struggle to find a lender - we took on £280K on 25 yr when DH was 43 I was 47, combined income on £120k, no debts or loans, LTV was 40%. We were turned down by 2 lenders on age!

Have you spoken to a broker? Not all companies will be willing to offer a mortgage, and to go past retirement age you'd need the broker to agree that it is likely you'd be able to continue in work (so if you had a very physical job, I'm guessing that would limit your chances!).

We’re into our 50’s and still with a £320k mortgage so I’d be very happy with just £220k .

Got a new mortgage last year aged 45. It makes me feel sick that I need to work for the next 25 years to pay it off. I didn't have any choice though.

now prices reducing a bit

For so long now, we have lived in a world, well, here in the SE England, where with the occasional blip, house prices have in the medium to long term been on an upward trend. If prices are reducing a bit, what will stop them reducing further? Negative equity can be managed if you have time to ride it out.

Im very sorry you are in this position, it must be tough.

Sorry theyre in this position?! Gosh. From where I am I think they're in an incredible position - pensions and savings for uni. Thats already far more than we have (and most people really).

I would do it. Secure as it comes jobs and financially stable, and the ability to use the asset with lodgers and downsize in the future. Yep.

Out of interest, what does happen if people get sick or can't make the repayments, say at age 60 / 70...would they then have to sell and downsize?

I would rather have a smaller place than lodgers. Don't want to live like a student in older years.

My grandparents got their first mortgage after they retired. Bought their own council house. Was a fairly small mortgage though and the repayments were less than their rent.

Thank you for the responses. Heartened to know some of you have done this. We have spoken to our broker who has several deals we would qualify for (perhaps they take into account the size of your pension pot plus this new mortgage will be around 50% loan to value so we still have sizeable equity). Repayments would be £1200 per month on a fixed deal - we take home 5K a month. Just seems high compared to our current mortgage of £750 a month.

Difficult knowing whether to wait another year or two as I'm sure house prices where I am will fall further, but then so will my house and it will probably be harder to sell then.

Can you not max out your pensions and retire early (to the sea)?

I'm 50 and have just taken on 18 year mortgage of £180000. It's ok and I overpay a bit every month.

Gotta live somewhere!

Oh and I am single parent and earn £50k.

Could you do the coast now? It sounds like you could do your jobs anywhere?

We have, and we are doing air b and b to cover our mortgage.

Would love to move now hooligans but child has just started secondary school and is settled. Earliest we could go would be sixth form/university transition I think. Not sure it would be easy starting new jobs/moving house mid 50's plus we enjoy living in London now but think we'd like a change of pace post retirement hence the 17 year plan!

We 18 took out a mortgage when I was 53. Not a huge amount, £110K, we already have equity.
We bought a 5 bedroomed house and my ( very elderly) mother and two young adult ( 18 and 20 year old ) children live with us.

The chances of us still being a family of five and needing such a big house in for that whole 19 years are pretty much zero.
So although this house suits our needs now our plans in the medium term future - 5-8 years are to sell and downsize.
Our house has increased in value by 25% in the past 4 years ( we knew that would happen before we bought, it is due to local circumstances) so when we sell we will be able to purchase a new smaller house and have no mortgage.