How much would you borrow for a mortgage at 50?

[NorthGirlie]

Hello,
I’m not sure what to do. I’m coming to the end of a divorce and, at worst, will get £125k which is 50% of the family home. I will have to sell the house as (a) it’s too big for what I need now, (b) too many memories here and I want a fresh start and (c) I would need to buy out stbx.
I’m wondering what to do about a mortgage. I really don’t want to have to get a mortgage at my age but it’s looking like I will have to. I have been mortgage free for a few years. We are in the north so house prices are cheaper. I don’t want to end up in some grotty estate so wondering if I should just take the hit and get a mortgage but how much can I comfortably afford?
My current take take home pay is £2250 but will increase to £2500 in August and will rise again, to £2750, in a couple of years. Then I’m at the top of my scale and I don’t want to jump to the next level as it’s be too stressful for me.
My bills are £850 and this includes a £143 a month loan which I’m paying back another three years and, also, car payments of £242 a month over the next 3.5 years. I needed the car for work and days out etc. Without these I could probably get my bills to less than £500 a month but my gas and electricity is currently fixed until August 2023. I don’t receive any child maintenance and, yes, I am hoping my financial settlement figure will be better than what he is currently offering.
I spend £350 a month on top of the above on food and car fuel, then £100 a month on pocket money for my two teenagers. My eldest is 18 and will, hopefully, be working later this year so his phone contract will
be handed to him to pay and I’ll probably stop paying pocket money to him.
How much would you say I could spend on a mortgage over 15 years? I don’t want to live like a pauper until I retire. My pension is also reduced as I was part time for 12 years. I have been back full time since 2016. I like to go to London every few months and have a holiday abroad every other year. And, like to eat out at weekends (just a Costa or something). Would I be stretching it too much to get a mortgage of over £100k at my age?

It’s more income protection I would be after to pay the mortgage if I was I’ll or even pay it off in death or something. I am covered for the worst case via my employer but it depends how long I’d be I’ll for before I died. Bit morbid but have to think of these things.

@NorthGirlie

It’s more income protection I would be after to pay the mortgage if I was I’ll or even pay it off in death or something. I am covered for the worst case via my employer but it depends how long I’d be I’ll for before I died. Bit morbid but have to think of these things.

Not morbid at all. It's practical. If I was in a position where I could only afford life or critical illness, critical illness would win every time. However, your premiums will be high if you're starting the policy in your 50's.

Personally I’d go for the cheapest house in the ‘nicest’ area you can afford but looking at nicest in terms of access to facilities and safety because now I’m over 50 I realise these are becoming much more important to me than my dream house in the country with no neighbours etc. The smaller your mortgage the better your security, it doesn’t sound like your job is one you want to be in till you retire either.

I'll go against the grain here and say that I think a mortgage would be affordable. I know most posters on MN seem to pay off huge mortgages in their 40s and have hundreds of thousands but the reality of my own life is that the majority of people I know will pay off their mortgages in their 60s
If your salary is going up to £2500 in August you are spending approx £1300 on all bills Inc food, fuel and pocket money. That leaves you £1200 a month to pay a mortgage and all other expenses
In a couple of years you will be earning £2750 a month and in 3 years your loan d car loan will be paid freeing up another almost £400 a month
I would buy the house you want taking out the mortgage you need to but once your loans are cleared and your salary goes up, concentrate on overpaying and aiming to get it paid off asap

I’ve seen a few cottages up for sale in villages at around £180k. A bit small but, tbh, I would prefer that. Council tax only band A too. Big bonus that they are in a village location and this is what I had planned on once the kids left home anyway.
One has a loft room converted out as a bedroom so that would give me the 3rd room.
Really don’t want to pay loads out even though, like pp said, my car and loan will be paid off in 3-4 years. However, I wanted to enjoy life a bit more and travel.
Maybe I’ll meet a nice man one day to make me happy!

Pay off your loans with the equity from your current house sale.

Then see how much of a deposit you have left with the remainder.
Calculate how much of your income is comfortably affordable for mortgage payments once the loans are cleared.
It will put you in a better position with a mortgage application, and leave you with more desposable income going forward.

Approx debt from your repayment figures = £14K
Remaining deposit after house sale and debt repayment = £111K

Proposed house purchase of £180K;
Mortgage required = £69K, plus fees

MSE Calculator:
£74K repayment mortgage over 15 years at 3.5% = £529 per month

(This is £144 more than you are currently paying for your loans, to give an idea of affordability).