to get first mortgage after 40?

[ivebeencalledworse]

Mortgages are not something I know about. I am totally ignorant of them. I've lived without one my whole life. I came from a broken home with no guidance on how to be an adult. I left home at 18 and made my own way, which included debt, poor relationship choices, alcoholism, recklessness, and finally an abusive relationship and had to start all over again with a baby.

Don't get me wrong, I managed well enough, worked, remained functional.

But now at 40 my life is totally turned around because I married a wonderful, responsible, and loving man who adopted my child and we've been happy for five years.

He's younger than me and ambitious. He's supporting us while I use my income to pay off debts, which is going well. I aim to be debt free in the next few years.

I have a council home but my family want a better life so we are talking about a mortgage together.

I have a lot of research to do but when I say I'm ignorant I mean I'm starting from scratch.

Any glaring things I need to know would be gratefully received.

Am I "too old" or anything? Will my bad credit history (even if I am debt-free) be a real issue?

Also, I'm a freelancer with a variable and small income. I will not be going back into full-time employment. My maximum earning will be £1,000/month.

I genuinely never thought I would even be thinking about a mortgage but life has never stopped surprising me.

I appreciate input.

@ivebeencalledworse it takes time for your credit score to improve

Even after paying off debts

Plus they will assess your credit record. Not just the score on the day

They also assess spending for 3-6 months prior to the application. So if there is debt repayment in there they will see it.

It's a lovely idea but honestly I think you're going to be in for a hard time getting a mortgage based on what you have said so far. Even in a few years time.

Thank you, it's valuable information.

It's an option he gets the mortgage just in his name. We will do whatever's best for our child and whatever best facilitates us living a life we can all enjoy.

I'm just wondering now, pin the debts for a second, but surely couples where one is a non-working parent get joint mortgages? Or is that likely to be where the breadwinner earns a much bigger salary?

You write well so you obviously have a level of intelligence, it amazes me why you aren't finding out about the things you know nothing about.

Google 'right to buy'. Then you can see if it's right for you. Google 'mortgages' (then 'interest only mortgage' 'endowment mortgage' and 'repayment mortgage' [hint - go for repayment]). Google 'should I be on the mortgage' (answer - YES).

Don't rely on an advisor or your DH - you can educate yourself.

I'm going to research but haven't started yet, just putting the feelers out here because mumnsetters seem to have mortgages on the whole. I'm being lazy. I have a big project I'm working on so this is just an easier way to get some info while I work.

Yes I'm 100% for knowing the ins and outs myself.

Why do you say don't rely on an advisor though? Do they give inaccurate or biased information?

I will add though it all seems boring and I'd much rather be researching something fascinating. I find it almost impossible to concentrate on things that are not exciting and is there a more boring topic than mortgages? I'll probably find some videos to listen to as I do housework.

@ivebeencalledworse we’ve just got a mortgage, I’m 51 and DH is 56. It’s over 12 yrs, fixed for 10. We intend to have it paid off sooner than that.

We have had houses in the past, however for this mortgage we were classed as first time buyers (not for the stamp duty though 😢) because it was many years ago. We’d been living in married quarters for a lot longer than we thought we’d be because I’m disabled, and I ended up not being able to work. We thought we’d have to rent for the rest of our lives but it turned out not to be the case.

Our mortgage was surprisingly easy to get. We used a broker, they came back with this provider. They just wanted proof of deposit. No one ever looked at our current account. We had to show DH’s payslips and income from his pension and that was it.

Good luck with it all. It’s quite daunting. I felt unwell when I was doing all the ringing around and making decisions but it’s worth it in the end.

@ivebeencalledworse it's an incredibly bad idea not to get your name on the mortgage

It will leave you financially vulnerable. And your child.

Oh really? they did not want proof of your income? Just a credit score for you both or what?

You can get joint mortgage if you're married & it would be silly to not put your name on there.

I would consider carefully whether it's the right decision. There's nothing wrong with living in a council house & the rent will be loads cheaper than private rent or a mortgage. You will have money for clothes, going out & having holidays.

Look at prices of houses where you are interested & then go on a mortgage calculator. It should give you an idea. I think zoopla has one at bottom of screen.

I would also be wary about being SAHM when your partner is on a salary of £40k. It's enough at the moment as you're in a council property. But that salary won't be enough for a mortgage and looking after 3 of you. You've got 27 years until retirement so probably need to be earning.

We still owe £130k and pay almost £1k a month which we find expensive with other bills on top. Look also at council tax - we pay £220 a month now since we moved not far from our previous house. It went up by £80 when we moved. You may find things like council tax & water rates are more expensive.

I don't really agree with right to buy but it does exist. You would pay for example £180k for the property at a reduced rate. Live there another 5 years and sell at say £240k which would give you £60k deposit towards your new house.

Do you mean financially vulnerable or do you mean in terms of housing situation?

believe me, giving up my tenancy was a hard sell from him. My standards are low because I grew up on a horrible council estate on the top floor next to child groomers and kids with baseball bats.

I then lived around in shared housing while studying and working. Absolute craziness in some of them.

Then I got my own place, a studio, which to me was a castle, all my own.

Now I have a 2 bed house with a garden on a quiet street - this is my pinnacle. I expect literally nothing better.

It's my husband trying to elevate us. I refused to consider it saying I wanted security, was not a mortgagey person, was finally settled, and wasn't budging.

Now I'm considering it because my husband is the most wonderful man who wants to provide for us both. I have not been asked by him to earn anything, but I'm choosing now to work more and pay off all my debts and move with him and a mortgage really is the only way; either his or both of ours, either of which is fine.

It's a plunge for sure but a mortgage (whichever way) seems the only way to move into a nicer house?

(dad is of the forced to buy ilk, that council flat sold for £150K and he bought a house outright for 80 which I'm set to inherit along with any leftovers - and I never asked for a pre-nup. We trust each other and didn't take marriage lightly. We worked through big issues already, been together five years. Honestly I have a treasure)

@ivebeencalledworse

The more you post the more this entire situation is raising red flags

You have low standards

He has swooped in to save you and your child, elevating you to lofty heights of home ownership.

You sound lovely but there is something nagging me about the way you describe him in your posts. A bit white knighty

You make great points, all of which I've considered back and forth. I could earn much more but I won't do it to myself. I don't enjoy employment. I can look at building my potential, well I am. I've done some business consultancy and sales of late which was a great little earner that I'm looking into. I just refuse to put pressure on myself because it caused a breakdown in the past. thankfully my husband and I are on the same page with traditional gender roles (for us, not prescribed for anyone else especially our daughter) it's just where we are.

He leaves dinner plates in the garden and goes back to work. I get taken on holiday. It's a deal, a symbiotic relationship of mutual appreciation.

But as a SAHM I still give focus to my future earning potential, just on my own terms.

I don't agree with right to buy either. Yup, nothing wrong with living in a council house, and was always my aspiration.

Can't deny it really. What can I say? It's what's going on. He wants to live in a nice big home and be a successful businessman etc. etc. I couldn't be too arsed. We both agree our child deserves the best.

@ivebeencalledworse

Please make sure if you do go down this road to get your name on the mortgage

You'll be making yourself vulnerable by giving up your home and doing this

Tbh I don't think it will work out, unless he wins the lottery he isn't going to be earning enough in the next 5-10 years to make up for your low salary on a mortgage application but still.

But to have my name on it, my income has to be taken into account, right?

Thank you for your input. Allow me to be dense; a family on £50K cannot repay a mortgage? Surely there are families on a lot less with mortgages?

It's cheap up here by the way, we're probably looking at £200K max, and we are waiting to see what the situation is after this bubble we're seeing.

But my main question at this point is it seems like you're all saying we can't cover repayments but I didn't think mortgages were only held by high income households? And I would have assumed that couples with SAHMs also frequently held mortgages too?

So why are you saying we would have to win the lottery?

@ivebeencalledworse

Yes it would have to be taken into account

But why would that be an issue

It's still more money as a household. It would be silly not putting your name on the mortgage.

If houses are cheap then go for it, but look at how long it will take him to earn the £40-£50k a year salaries in one job. If house prices are cheap I'd also assume salaries are lower in your area too (they often are in areas with cheaper housing)

How long is it taking him to save up the deposit too?

If you give up your Council home, the most secure type of tenancy, and move in with dp you are making yourself vulnerable, particularly if you have a low income/don't work. Make sure you are on the mortgage and think very carefully about what would happen if you became a single parent again in the new housing position. Would there be enough equity, for example if you split up, for you to think about buying somewhere else alone. How would that work on a low income? These are questions you need to think sensibly about as you need to consider your childs future security too.

I would also think about right to buy as, with the discount, you'll have an instant deposit but won't be able to sell for 5 years to realise the full amount. You don't sound very clued up on how it all works so I'd recommend the Which guides to mortgages and house buying. They lay it all out in simple terms.

Try not to let your heart rule your head and good luck.

He opened a help to buy ISA and is putting £200 a month in there. Instead of doing that I'm putting 80% of my earnings to paying off debts this year. My debts are just under 10K so it will take the year and most of my earnings plus me earning more.

He's on 40K now with his salaried job and his shit job. He works 70 hours a week. In return I do all the house stuff and take that area away from him completely. We both understand this deal. He knows I don't have the same aspirations as him in terms of standard of living (I mean it's not a low standard but he wants an office and to travel away for business etc. etc. He's very driven)

So we have 50K combined right now.

A family on 50k with a child can repay a mortgage. But probably not for a house worth more than £200k and the repayments will be a lot more than you would pay for an equivalent council house in rent.

Debts will drop off your credit record after 6 years. So even if you pay off your debts you will still have them on your credit record for a time. That might count against you in a mortgage application.

It's a good idea to pay your debts off regardless, so well done on that OP. I would bide your time though, stay in your secure tenancy for a bit, build up some savings.

See what the housing market is like a few years from now. And see if you're still happy being the SAHM who picks up plates from the garden your DH leaves for you.

Have a word with a mortgage broker. I got my first mortgage when I was 40 and it was paid off before I was 60. I didn’t have a high income and my credit rating was not good because I had never borrowed any money or been in debt before that.

Okay, great, thank you.

I am not going to give any more financial tips as others have done that better than me, but your language is very concerning. And all the power in this house appears to be with your "wonderful" man while you pick up his plates and rely on him having a fantastic career ( which may or may not happen). Doing all the house stuff over years can be soul destroying.

Men are never as wonderful as they seem to be.

Yes, we had to provide DH’s payslips and his pension income, but we didn’t have to provide any bank statements showing what we spend each month. We, also, had to show our deposit and say where it came from but that was obvious from the statement on our savings account.

Our mortgage is in joint names despite me not working. The solicitors just asked DH if he understood what he was getting into. He said he’s been married to me for 28yrs, so it was a bit late to be asking that!

Whatever you do OP don’t make yourself vulnerable and make sure you’re on that mortgage 50/50. Giving up a secure tenancy on a council house is a big deal so whatever you do don’t make yourself financially vulnerable again.

But to have my name on it, my income has to be taken into account, right

I am sure there are non-earning SAHM who have their name on a mortgage.

You might be better splitting your money and putting half into savings and half paying off debts.

When we first bought years ago I had no debts and so had no credit rating. So although DH had credit card and loan payments he was able to prove he was a safe risk to lend money to. You can still buy with debts they just take it into account.

I think £200/month your DH is saving will barely pay your stamp duty let alone a deposit.

What is your current rent? Maybe you could save the difference to see if a mortgage is affordable. So for example your rent is £450 and a mortgage would be £1200 then see if you can save £700 a month & afford to live.