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Original poster

Reasonable amount for mortgage age 40

26 replies

Fruitshootloop · 10/02/2021 20:50

DH and I can’t decide whether to go for a bigger house or pay off the mortgage where we are and enjoy that. Joint income circa £120k. Currently have £70k left to pay on mortgage, should take three or four years. Buying a bigger house of the type we like would mean a new mortgage of around £400k. Is that too much to take on age 40? I hate the idea of being tied down again for so long but would really love a bigger house and garden. What do you think?

OP posts:
TheFlis12345 · 10/02/2021 20:58

Same age and income, just taken on nearly £450k. That’s the South East with a short commute to central London for you!

AnneElliott · 10/02/2021 21:29

How many years would you pay off the £400k? Would you finish it before you get to 60?

Original poster
Fruitshootloop · 10/02/2021 22:04

@AnneElliott yes, I would hope so. But I imagine it would take the full 20 years.

OP posts:
Original poster
Fruitshootloop · 10/02/2021 22:05

@TheFlis12345 terrible isn’t it! Do you mind me asking how much you pay per month?

OP posts:
CoffeeRunner · 10/02/2021 22:09

If the home you’re in now is suitable for you. If there is enough space for you both, any DCs as they grow up, any pets you have/want to have etc, then I would stay put.

A nice new house is exciting but I really value financial security now more than ever.

DustyVenetian · 10/02/2021 22:14

I took on 270k solo aged 40. It was 35 year term and it scared me when the payoff age was 75!

I overpay when I can and hope to bring it down that way. 3 years on it's already helping.

Is that 20 years accounting for any overpay or does it just cover repayments ?

LaceyBetty · 10/02/2021 22:15

I'm early and my husband is late 40s and our mortgage is more than that with a 23 year term. We overpay when we can and hope to clear it before retiring.

DustyVenetian · 10/02/2021 22:16

Should say I had no choice when I left exH.

It's on my mind a lot and I would love to be down to just 70!

MeanMrMustardSeed · 10/02/2021 22:16

Depends. Would the new house add dramatically to the quality of you/ your families life, or would it be a vanity project?

Original poster
Fruitshootloop · 10/02/2021 22:19

@DustyVenetian I think we would aim to overpay where possible but I can’t see it being drastically less than 20 years.

@CoffeeRunner suitable but not ideal, currently. We have just about enough space but missing some things like a big garden for the DC, and the school catchment is poor at secondary level.

OP posts:
blue25 · 10/02/2021 22:19

No I wouldn’t. Try to be happy with what you have.

Being mortgage free will mean you can cut back on work or retire early and do lots of travelling, hobbies etc. If you take that size mortgage out now, you’ll be stuck working until you’re 60+.

ladygoingGaga · 10/02/2021 22:21

I was in all most identical position three years ago, frightened pants off me having mortgage that big. But love the big house and land we got for it, changed our lives.
I think it depends if what you get will make you happy.

Original poster
Fruitshootloop · 10/02/2021 22:23

@MeanMrMustardSeed not a vanity project but it would be doable to stay where we are.

OP posts:
MaxRushden · 10/02/2021 22:23

How old are your children?

We're a couple of years older than you and have two children at university- it's a really expensive time, it's worth researching what your contribution would be if your children chose this route.

Even before this the mid teenage years were expensive- one of ours did GCSE PE which meant sports' clubs, equipment etc.

Worth considering.

DustyVenetian · 10/02/2021 22:24

I'd be tempted to go for it. I'd do it for the school alone tbh. It so important and if you have an option I'd do it.

Good luck with the decision

AnnaSW1 · 10/02/2021 22:25

If you think your life would be more enjoyable by moving then I'd go for it.

Original poster
Fruitshootloop · 10/02/2021 22:26

@ladygoingGaga and @blue25 sum up the arguments going round my head!

OP posts:
TheFlis12345 · 10/02/2021 22:27

It’s about £2100 a month. A lot, but just less than a third of our take home pay so manageable. We’ll also be over paying as much as we can.

ladygoingGaga · 10/02/2021 22:36

There will be sacrifices, if you are used to larger disposable income now then you need to plan and talk about what you will be giving up. Balanced against what you will gain.
Good old fashioned list helps, pro’s and con’s somehow seeing it in black and white helps to think about it

Original poster
Fruitshootloop · 10/02/2021 22:37

@MaxRushden interesting point, thanks. Children are under 4 now so uni feels far away but definitely worth considering!

@DustyVenetian thank you. I’m hoping that the school improves or catchments change by the time DC will be due to go, but it is a big risk.

OP posts:
Mrgrinch · 10/02/2021 22:43

I'm confused as to why you would need to move to a house worth 400k more?

Original poster
Fruitshootloop · 10/02/2021 22:45

@Mrgrinch it’s the step up from a flat to a house in our preferred area.

OP posts:
Bubbles1st · 10/02/2021 22:51

Are you talking a £400k house or putting down all the equity as a deposit and still having a £400k mortgage?

DustyVenetian · 10/02/2021 22:53

I'd be also looking at private school cost if you stayed put.

Money saved on the actually move and then not paying the subsequent higher repayments might work well as a fees fund.

Depends on area how many kids at secondary together etc.

Iamtooknackeredtorun · 10/02/2021 22:54

If I've read that right that you're in a flat and want to move to a house then I'd do it in a heartbeat with your level of income and your age.

When the children have left you could downsize. You may not need to be there till til the end of the term.

Enjoy things now. On your salaries the mortgage isnt much at all.

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