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Original poster

Getting a big mortgage late in life

20 replies

PtolemyTalks · 28/04/2019 10:43

We’re house hunting and I’ve got ideas above my station...

We’re both 50 and mortgage free. We’re househunting and would ideally like a drive and semi or detached with a decent garden. To get that where we are looking would mean a £150 to 200k mortgage on top of our deposit. We earn about £120K a year between us, dh has kids which means more outgoings than me but they are in their 20s.

Well both have reasonable pensions. There’s s bit of me wondering if we are mad to get a new mortgage though when we could buy a nice terrace with a small yard and stay mortgage free...

We’d probably buy a small investment property too if we did that in the area we eventually want to retire too.

I’m coscncious we are in a very lucky position....

OP posts:

WhoAteMyNuts · 28/04/2019 11:46

I think it's all down to what you want and are prepared to sacrifice.

We are mortgage free and wouldn't move again if it meant a mortgage. However we are both happy in our home so don't want to move iykwim.

Is this going to be your last house? If it was then I might be tempted to take the mortgage on with a view of paying it off quickly with overpayments. If you plan to move again then no I wouldn't take a mortgage out and save as much as I could instead for me forever home.

Another thing to think of is what would happen if one of you lost your jobs or became ill and couldn't work. Being mortgage free for us means that we could easily cope with either of those situations.

Original poster

PtolemyTalks · 28/04/2019 12:36

I think the sensible thing would be to save and then get forever house....my DH is of that view. It is a great feeling knowing we haven’t got to make those payments. And we haD a torrid time a couple of years ago when both jobs were at risk...but we knew we had the house...

OP posts:

MrsChollySawcutt · 28/04/2019 12:40

I'm 48 and have 2 years left on my mortgage and can't wait to be mortgage free. There is just no way I would be taking out a mortgage of that size at 50 with the earnings you and your DH have.

Al2O3 · 28/04/2019 23:44

Taking on a new mortgage of around £200k to £250k at 50 will shortly become the norm.

ParkingIInPlainSight · 29/04/2019 06:59

There’s a typo in my post, it’s £160k between us. I know someone people will have to at our age...but we don’t have to, only if we want off road parking and garden.

AdoreTheBeach · 29/04/2019 07:13

We are similar age and we plan to. Badicalky because my husband has always wanted a character property with land. Was not feasible working in the city with the commute, schools for our children etc. So we plan to sell up our almost mortgage free house and buy a character house further south from where we are. We only plan to have it for 5 to 10 years, which is past DH retirement age. But we have good pensions.

PickAChew · 29/04/2019 07:20

We've recently done similar, just with smaller numbers. Our mortgage runs until I'm 70. We plan to over pay once we've done given all rooms a once over.

JamdaniSari · 29/04/2019 14:42

If I was in your position I'd save first before purchasing.

tanpestryfirescreen · 30/04/2019 20:26

If I was in your position I'd save first before purchasing.

And not get a mortgage as too old.

RedHelenB · 02/05/2019 07:56

For a detached I might. Just for off road parking maybe not.

Yeahyeahyeahyeeeeah · 02/05/2019 13:08

200k on your income is nothing. I’d do it.

higgyhog · 03/05/2019 10:32

I think you can usually have a mortgage until you are 70 and if you have decent pensions you could either carry on paying it month by month or pay it off out of your lump sums when you claim them. Probably just a question of working out what your real priority is from the point of view of living a good life at your particular age.

stupidboyman · 15/05/2019 12:51

I'm 40 and owe 400k and thinking about extending by a further 200k. You won't be the only 50 year old
With a mortgage!!

higgyhog · 15/05/2019 14:57

If it is a repayment mortgage (is there anything else these days?) it will have reduced a lot by the time you look at retirement and you can probably pay off the remaining years fairly cheaply out of your retirement lump sum. DH is taking early retirement this year and we will hardly notice the small amount needed to repay the balance (7K?ish)

TheFaerieQueene · 15/05/2019 15:01

I would only recommend doing it if it was a 10 year mortgage term.

SouthWestmom · 15/05/2019 15:04

Dh is 55 and I'm 45 we live in a crappy 4 bed in south east and still owe 200k (it's not worth much) due to taking out a shorter mortgage as we are older. It's £1500 a month and killing us even on decent earnings. I can't leave work, dh can't retire. I wouldn't sacrifice peace of mind for debt.

irregularegular · 15/05/2019 15:06

My parents took out a 120K mortgage when they were in their 60s and moved to their perfect retirement home. They got the home they wanted and could easily afford the £200 per month interest only mortgage on their generous public sector pensions. It was not a large fraction of the value of the house. Now they have died the mortgage must be paid out of the value of the house, but they got to enjoy it while they were alive. Seems perfectly sensible to me, depending on the security of your income.

Ces6 · 15/05/2019 15:06

We did it because we ended up unexpectedly having twins rather later than planned and had nowhere to put them! In your shoes I would do it - think of it as investing your money. If you can afford it, you have to put the money somewhere and property is usually a better investment than a savings account.

Knitclubchatter · 15/05/2019 15:14

We got a “personal line of credit” for 145K.
Not a mortgage per say, the bank and us preferred this option to divesting registered retirement savings plan funds. We both have company pensions.

Afternoonteadelight · 15/05/2019 19:49

I’ve been mortgage free for two years and I don’t think id ever take on another mortgage.

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