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Original poster

Mortgage late 40s how much?

56 replies

wombleflump · 19/02/2022 16:45

If you were a single parent but a high earner would you take out a mortgage if £250k in your late 40s or would you rather be mortgage free?

OP posts:
TheHoptimist · 19/02/2022 17:35

@Blossomandbee

I think you'd struggle to get someone to lend it to you at that age unless it was on a short term with high monthly repayments. I personally would rather be mortgage free if I had the choice, or a small mortgage.
They will end to at least 67 A 20 year plus mortgage isn’t short term, 2( years used to be the norm
over2021 · 19/02/2022 17:39

@wombleflump

How much do IFA charge?
What do you that earns you £100k+ but renders you incapable of using Google? Hmm

Lots of people in their 40's take on mortgages with sizeable deposits (which I'm assuming you have if you can afford to buy somewhere for cash). Speak to a mortgage broker (details can also be found via Internet)

Original poster
wombleflump · 19/02/2022 18:07

Yes thanks I’m not asking how to arrange a mortgage. It’s more about asking what’s the correct mindset to have over finances. I think Ea etc are so divorced from economic reality you kind of get swept along with all their hyperbole. I’m Just looking for reality check. I just get anxious about things around work finances. Also on my own with young kids so have responsibilities not to make a mess!

OP posts:
Bunnycat101 · 19/02/2022 18:26

I’d take it on in your position. Loads of people have mortgages that run until retirement age or beyond. If you’re frugal a mortgage of that size on your income shouldn’t be too bad over 20 years.

The most tax efficient way though would be to chuck as much as you can into pensions for the tax relief and then pay off a a big part of the mortgage with the tax free lump sum. You really don’t need a financial adviser- they’ll charge you a fortune.

Primrosecottage · 19/02/2022 18:32

@Blossomandbee

I think you'd struggle to get someone to lend it to you at that age unless it was on a short term with high monthly repayments. I personally would rather be mortgage free if I had the choice, or a small mortgage.
Mortgages are frequently given at this age with very competitive rates. It’s common to have terms until 70 now. Some will go beyond with guaranteed pension or BTL income.
Primrosecottage · 19/02/2022 18:34

I mean it’s really not ‘old’ www.theguardian.com/money/2022/jan/22/average-uk-first-time-buyer-is-now-older-than-30-says-halifax

JaninaDuszejko · 19/02/2022 18:40

We got a 20 year £250k mortgage at 47. Our joint income at the time was £100k and so at the lower end of your earning range. We have 3DC and don't particularly scrimp and save but the mortgage is easily affordable and we save more to pensions and other long term savings than we pay on the pension.

You'll always get people on MN who are obsessed with paying a mortgage off early but you will have no trouble getting a mortgage of that size, particularly with a sizeable deposit. Buy the house you love and enjoy it.

alwayswrighty · 19/02/2022 20:22

@wombleflump I work in an IFA as a Protection Adviser. The IFA (specialises in pensions and investments) has varying fees dependent on the complexity of the work involved but fees have to be declared upfront.

BarbaraofSeville · 20/02/2022 03:34

It depends and what is right for you isn't necessarily the same as what other people think.

How secure is your income and how likely are you to be able to keep working to keep paying the mortgage?

What pension arrangements do you have and when can you access them?

Will this be a forever property, suitable for old age or will you be looking to downsize when DC leave home?

fedup078 · 20/02/2022 07:31

I'm having a similar dilemma (Worse problems to have I know, but...)
Also single parent but I'm 38 and on a low income so my figures will be a lot different to yours
I can live here mortgage free but as much as I love the house I don't like the area and don't feel like this is my 'forever home'
My mother died at 58 so I'm kind of in the mind set that I should take out another small mortgage to live somewhere better and enjoy life more while I can and at the same time I'm still investing in property

Frenchfancy · 20/02/2022 07:44

I think it depends on what you do to earn the money. If there is any chance AT ALL that you might lose your job then I would go mortgage free.

Trying to find a new high paying job as a woman in your 50s with no backup sounds terrifying. And an IFA isn't going to give you any advice on that. They are good at helping you place your money to get the best returns, not at giving life advice.

Original poster
wombleflump · 20/02/2022 09:51

I have a profession for which there is a national shortage. I think I would only loose income if I became ill or made a mistake and lost my profession. Hopefully this is unlikely. I don’t want to buy and downsize though I’m thinking a forever move and prefer to not move again.

OP posts:
Shmithecat2 · 20/02/2022 09:56

@wombleflump

I was just wondering what people consider a big mortgage in your 40s I was thinking this is little 250k but maybe it’s big.
We've just got a £450k mortgage - I'm 46, dh is 53.
NoSquirrels · 20/02/2022 10:02

There’s a big gulf between £250K mortgage and mortgage-free.

As a single parent I’d want a smaller mortgage so would look for houses more in the £100-1575K ‘over budget’ price range.

Is that an option?

GOODCAT · 20/02/2022 10:12

You can always downsize later, but just be aware that sometimes you can start to feel as though you want to stop work sooner than you might think you do now.

I am early 50s and happy in theory to work until late 60s but husband wants to stop sooner and he is early 60s. It changed for him on turning 60.

I started getting a lot more concerned about my pension on hitting 50ish so I now want to contribute as much as I can to that, but took out a mortgage at 44 which it will now take until I am late fifties to pay off. When I retire I will downsize, move somewhere cheaper and release some cash. However, it is going to be a frugal retirement. That is mostly due to upsizing and moving to a better location in my 40s although that hugely improved my quality of life so I don't regret it.

In your position I would go with my gut instinct.

Original poster
wombleflump · 20/02/2022 10:26

There is so little for sale at the moment. I missed out on my preferred house which was only 100k over budget.( Due to issue with ex DP ruining my life. ) I need now to move ASAP and the choice is limited.

OP posts:
Original poster
wombleflump · 20/02/2022 10:28

I have a occupational pension which currently not that great only 22k from 60 but may be more of work another ten years. Also I am quite frugal so don’t lead a lavish lifestyle. I’m thinking at current rates could pay off in 5 to 7 years. Not sure if silly to buy a house which may be too big for me in the long run.

OP posts:
Porfre · 20/02/2022 10:48

So you earn between 100k and 200k but are worried about taking out a mortgage for 250k?

If you're living frugally that should be very easy to pay off.

Wfhquery · 20/02/2022 11:06

@wombleflump

I have a profession for which there is a national shortage. I think I would only loose income if I became ill or made a mistake and lost my profession. Hopefully this is unlikely. I don’t want to buy and downsize though I’m thinking a forever move and prefer to not move again.
You don’t have to plan to downsize and hopefully it would be your forever home but the option is always there if the worst came to the worst and you lost your job through ill health or something. I think in your position I’d go for the mortgage if you can easily make the payments without having to cut down on essentials
BarbaraofSeville · 20/02/2022 11:22

@wombleflump

I have a occupational pension which currently not that great only 22k from 60 but may be more of work another ten years. Also I am quite frugal so don’t lead a lavish lifestyle. I’m thinking at current rates could pay off in 5 to 7 years. Not sure if silly to buy a house which may be too big for me in the long run.
It sounds to me like you should go for it. You can always move again in 20+ years time if you decide you want/need to. Or pay for help with cleaning/gardening etc, or do equity release.

Being naturally frugal helps enormously because you have the double whammy of happily living on less money and building up savings because you don't spend as much on cars, eating out, tech, clothes, treatments and accessories etc etc that many see as 'essential' so need a higher income for a standard of living that they are happy with.

Wfhquery · 20/02/2022 13:36

I’d also consider if you have money to save paying it into a pension rather than savings as you get the tax relief which will be worth far more than any investment income.

roadtoruin · 20/02/2022 13:38

God absolutely I intend to very soon. Your money will likely give you a return so what's there to lose if you can afford it?

Perhapsnotthen · 21/02/2022 21:52

A 250k mortgage surely isn’t much of your take home pay? I’d get a house you love.

livingonpurpose · 22/02/2022 15:18

How quickly would you be able to pay off the £250k mortgage? Presumably on your salary you'd be able to pay it off in a fairly short amount of time? That's what I'd aim to do if I were in your shoes and took on that mortgage.

I'm mid 40s and also a single parent. I often contemplate moving to a nicer property, but if I stay put I will be mortgage free in 4-5 years time, whereas if I move I'll be adding at least another 5 years onto that.

Personally I keep coming back to wanting to be mortgage free as soon as possible, so that I can go part time, save for early retirement and not have the pressure of needing to earn xx amount each month.

Mushrooms0up · 22/02/2022 15:23

Do it! You can always sell up and downsize in 15 years or so if it’s too much.