How much mortgage can I comfortably take on at 52?

[YorkshireTeaSemiMilkNoSugar]

Hi,

Divorce almost at a close. I am getting 50% of the sale of the house, which minus the ridiculous solicitor fees, leave me with about £120k. I currently have around £700 disposable income so I'm worried about getting a mortgage (family home is mortgage free) and having nothing left for a life! I work hard for my salary 😔.

I'm just turned 52. We aren't touching each others pension etc.

Ideally, need a 3 bedroomed house in the north east.

Pension lump sum accessible at 60. I worked part time for 12 years but still have a decent pot built up.

What amount isn't going to cost me an arm and a leg? What has everyone else got? I finish paying a few bills next year that will give me and extra £400 a month plus I'm due another incremental rise. Salary just over £50k.

Who is best to speak to for advice? I don't want to end up not having money to enjoy my
life.

Speak to London & Country. They can tell you how much you can borrow, maximum term, and how much the monthly payments are likely to be.

They are a fee-free whole of market broker recommended on money saving expert.

Thanks, I'll take a look

You can get a mortgage, I've got one at 53. Point is, how bigger mortgage you want or need.
I'm moving out into one of the pit villages, less than 5 miles away, £20k+ less than similar home closer in, a compromise, but a home that's mine.
It's all about expectations.
Many people can only dream of an income that big, so it's more than affordable/do able as long as you are realistic.

Leeds building society do mortgages for older people. I've just got one from them.

Just checking you have seen cash equivalent transfer values (CETVs) of all the pensions before making agreements. They can be requested from pension providers. Also that you have had full and frank disclosure - all information and documentary evidence set out in Form E - pensions, stocks, shares, etc. (No need to answer here).

Even if around the same CET value the pensions may not be like-for-like. A similar cash transfer value for a defined benefit final salary pension that goes up with the consumer price index is likely to be worth more in income for example. Plus there are the widows benefits (loss) to consider.

Also a pensions on divorce expert report (an actuary report) can show capital and income values, give figures for 50/50 split or another percentage, incorporate different retirement ages.

Just in case...

https://www.bristol.ac.uk/law/fair-shares-project/

https://www.ageuk.org.uk/latest-press/articles/2018/september/women-losing-out-on-money-in-divorce/

https://www.theguardian.com/lifeandstyle/2023/nov/03/women-losing-out-as-couples-try-to-divorce-on-the-cheap

Take care :)

I earn 10% less than you and got a £120k mortgage with Leeds last year aged 50 til am 74 - this is costing me £756pm (5.34,%) but obvs rates have changed. The plan is to enormously overpay to bring the term down which I've yet to start doing as it's tight at the moment paying solicitors and credit cards for moving costs and a place of new furniture off.

I would talk to a reliable mortgage broker. It will cost a fee but save you money in the long term. A good one will go through your budget and talk through all your options. Good luck.

I'm almost 57 & was planning to get a 15 year mortgage for up to £80k on income of £42k/yr & deposit about £240k. I haven't formally approached lenders because we still have to sell marital residence, just messing about online, those numbers seem to be feasible.

ps: about mortgage brokers... I imagine they save the most money for people borrowing huge amounts. For those of us who won't be able to borrow huge... if I fixed for just 2 years, I'm far from convinced a £1000 to broker would be cost-effective.

Can you not get a smaller house? 3 beds on your own is a luxury if it'll leave you struggling

I’ve never had to pay a broker, they just take their commission. I have never borrowed huge amounts (biggest mortgage was £225k most were less).
Ours is a proper independent.

I suppose £225k is still 3x more than I could hope to borrow, though. So tending towards huge in comparison, lol.

Who pays the commission if not the borrower?

Commission is paid by the lender.

My first mortgage was £60k and through a broker and that still cost me £0.

My fixed rate ended this month and as I was staying with same lender and no additional borrowing I could have just selected the new rate online but brokers have access to preferential rates with many lenders so instead my broker set up the new rate and then I got a new email link to complete it online but the rate was 0.2% better for exactly the same mortgage product. That’s not huge but it’s still cheaper and cost me nothing.

Many lenders will allow a mortgage in retirement. First Direct will go until age 80. However, beware if your income in retirement is coming from a Sipp. First Direct and maybe some other lenders will not use income from a Sipp in their calculations so after agreeing to lend in principle and being fully aware of where my income in retirement was coming from, they declined my application causing weeks of delay. I did like their mortgage conditions though where there was no penalty for overpayments right up to leaving a pound in the mortgage on a fixed rate deal. This is available only by applying to them. They don't deal with brokers.

Halifax are apparently quite easy to deal with and will mortgage up to age 75 with no need to go into retirement income details. So I'm hopefully getting sorted with them now.