AIBU to apply for mortgage ?

[Cocknose]

AIBU to be taking on a mortgage at 45 ?

I currently work part time, have three primary school aged DC. I am also studying for a degree and I am hoping to have completed this and my masters in 4 years time.

I will be 43 when I complete my degrees and the qualifications will open up more job opportunities and earning potential

If I am successful in completing my degree / gaining full time employment I was considering applying for a mortgage when I am 45

I have started saving now towards a deposit and I will be able to increase the savings amount over 2 years when I start my full time employment to enable me to put a decent deposit down.

We will need a bigger house then due to mixed sex children.

My husband is in agreement that we need to find a larger house (He is currently working in low paid employment but training at night school to qualify as electrician so will hopefully be in a better financial position when working for himself) and has told me that I am being unreasonable to expect us to be accepted for a mortgage aged 45 as we will be to old as less time to make the repayments.

Just looking for thought on this ? We are currently renting but I am thinking it longer term security if we have our own home

Of course you can. The term may be a bit shorter eg a 20 year mortgage instead of 25 or 30 so you may need to factor that into affordability

Yanbu but why not apply now or is deposit the issue?

Have you looked into things like shared ownership? I have mortgage on 40% of a 3 bed house that way, and my rental + mortgage is singnificantly less than the equivalent full rental would be.

Retirement age is 65 so you could still get a 20year mortgage.I divorced and got a mortgage at 56,I was offered longer terms but went for 10years.So no 45 is not too old and anybody moving from their own house to a bigger one would also still need a mortgage so it's not as if you're on your own.
So good luck with your plans.

Thanks for all your replies. I feel more positive now! Deposit would be the issue which is why I can’t do it sooner. I will look into shared ownership as this is something that I have not have given any thought to

Yes of course, but as the other have said the term would be much shorter and therefore your monthly repayments much higher

Actually you can get mortgages up to about 75, as long as you solemnly swear to keep working in order to pay them. You can get them for longer if you can prove your retirement income but this is difficult in practice unless you are close to retirement. With the affordability assessments, if (and this is a very big if) interest rates are still low, you will probably be assessed for a mortgage with repayment lower than the repayments you could in fact tolerate. So just overpay and you will in practice reduce the term. With inflation you will also likely be able to overpay in future too. You will be ok.

We have got our mortgage at ages 45 and 46 last year. We had a 25% deposit as we had owned a house before, which reduces the repayments a bit.

DP is a mortgage broker. There's actually providers with no maximum age I.e. You can be into retirement. Have a look on google and look at for smaller building societies he says.
Of course he also says it might be useful to use a broker!!

I don't think taking out a mortgage at 45 is a good financial decision, no. You need to be thinking about paying your mortgage off in your fifties so from that perspective, it's all a bit late.

Could you put lots of funds into private pensions instead. There are lots of videos on youtube explaining why renting and putting funds into your pension plan is as profitable as buying your own house in many cases.

In London and the South East isn't the average age of a first time buyer around 38 or something similar? Things have changed, I don't think many people will be fortunate enough to pay off their mortgage on their fifties anymore. My friends have just bought their first place on their early forties and we've just taken on a much bigger mortgage in late thirties/early forties as it was the only way we could afford a decent house in a decent area. All professionals in good salaries. I don't think it's an issue these days as well all be working into our seventies anyway I would think!

@notsuchasmugmarried. That is very outdated now. Op you are giving me hope that at 41 I can still do this too

We got a mortgage earlier this year, my partner is early fifties and it runs until he is seventy. We hope to have it fully repaid well before then, if all goes to plan but if not we’ll both work until it is. In our case he was almost forty when we bought our first house, which we outgrew years ago but had to stay in after the effects of the 2008 crash.

I think you’ll be fine, OP, it’s not unusual these days at all.

Most people now have a mortgage til around 70. Sign of the times and house prices I'm afraid so absolutely no problem taking on a mortgage at that age depending on affordability I.e based on calculations if you need £200k you might not be able to afford that over your maximum term so you'd need to look at a cheaper house. Also you can only go past retirement age generally with a pension in place that you're currently paying into. So get set up into a pension when you can. Otherwise seek good financial advisor from a decent mortgage broker before proceeding.

Lol at paying off your mortgage in your fifties. I'm expecting to work until I'm at least 65, probably 70, so that's how long my mortgage runs. Not ideal, but reality if you want to buy a three bed house in the south east on an above average but not huge salary.

There is no retirement age now, although some companies will not allow you or want you to work over a certain age. My state pension age is due to be 68, but I expect that it will increase. On top of deposit, you will need money for solicitor fees, moving costs, emergency costs , mortgage arrangement fee. Pay extra into your mortgage each month, do you really want to be working at 70 ?