Applying for mortgage & DH too old for 25 year mortgage ...

[Missisdoyle]

We have sought the advice of 2 different mortgage advisors & they've both stated that as my DH is 47, we can only get a 17 year mortgage. He will probably be working until he is 70 anyway (!),so why is this so ? Has anyone else managed to get a 25 year mortgage, in their senior years ?

We found this out after choosing our house based on what we thought we could afford to pay each month. In the end we are on the shorter mortgage but 1) we have decided that it will be great to have the mortgage paid for early, 2) we are in a position to do this and 3) it just means a change of lifestyle for a short period of time. Good luck OP.

Well, of course the funny thing about bubbles is that everybody denies that they are happening and then, when they pop, everybody says they saw it coming.
So Bowlersarm, i fear that you are wrong.
Overpopulation is a myth. I can prove it easily. When you buy a house you are buying the right not to pay rent, in economic terms.
Therefore, if population is increasing, rents should be increasing.
They are not. Well, they are, but at a rate that (nationally) is below the rate of inflation.
They didn't increase at the same rate as house prices after 1997 either. Go and look.
What did increase was mortgage lending.
Try this little experiment for yourself. Ask people what will happen if mortgages were limited to 50% of annual income.
Prices will drop, right?
So we can see that house prices are a factor of lending not of population growth.
After all, Japan in the early 1990s had a stupidly out of control price bubble. Everybody said what you are saying - prices will not fall, because of population. Prices will not fall, because of low interest rates.
Then. Bang.
In Tokyo, prices fell 90%. Across Japan, 70%.
The popualtion didn't grow.
Interest rates didn't rise.
We now have more bedrooms per person in Britain than we did in the early 1980s. What's interesting is that there are only three European countries that have more bedrooms per person than we do.
Two of those three are Ireland (50% price crash) and Spain (50% price crash).
House price increases are being replicated across the globe. Unless we are being invaded by mortgage taking martians, it is not population that is the problem.
I say again. Do not buy now. Wait until after the election. Bad stuff is coming.

first of all, i suspect that jamie is an hpcer spreading his message like 'dad's army's fraser and his catchprhase of 'we're doomed'...

most people on mumsnet don't have a treatise on imminent hpc's up their sleeve as they're too busy putting up their feet after persuading the kids that it really is bedtime, even though it's still sunny outside... plus, kids give you a sense of a real tomorrow that will be made to work.

so, jamie, if you do belong to hpc site, explain how the 'crash' that the followers have been espousing for the past 15 years has worked out for you? still in rented accommodation, waiting for the sthtf?

if there IS a crash on the way, whether or not you own outright, have a mortgage or rent, we'd all be, to use a terrible political catchphrase, 'in it together'. and will all feel the affects... unless you have a helicpoter to take you to neccker island, you WILL be caught up in the ensuing mess. but, most people who have paid off at least a third of their mortgage at least have a signifiant buffer to see house prices drop by a third before paniching and, even a first time buyer (if there is such a thing in the south east) who bought in london from 2010 - 2013 in london has done just as well.

your pov sounds very much like theirs: bought into the 'end of days' of capitalism and banking an age ago... those that gave up waiting to make a killing among the ruins of a crashed market and bought a house anyway have left, leaving a core of people who desparately need the crash to justify their stance whereas everyone else just got on with living and families..

even now, most hpcers are just hoping for a crash so they can finally buy into the housing market at a discount (or a price they can actually afford).

so, jamie, what's it like in your 'enders' bunker?

(obviously, if i've impuned you, then apologies but you really do look like the stranger in town as, admittedly, do i. apologies to the site, too, for a slight hijacking of the subject.)

Marineville, I think most of the posters on hpc have given up waiting for the 'crash' to happen and gone and purchased a property, having read a number of their posts/threads over the years.

And personally, if we'd waited we wouldn't have paid off a huge sum from our mortgage. We'd just have paid a huge amount off someone else's mortgage.

So future crash or not, you can't wait it out for ever, it may be after the election (can't see it), it may be in 10 years time when you are 10 years nearer to a mortgage free property. It may not happen at all. Who knows. All you can do is find the best possible mortgage you can, be as sensible with money as you can, and not over extend.

Well I am with Jamie, there has been a lot of misleading statistics and spin by this government.
I have been a reader of HPC since the site started but never joined. I would like to add that I got rid of a mortgage in 2007 by downsizing after what I read on the site. Well before the banking crash members were predicting the financial crash. Not weeks before but probably a year before it happened.
All the supermarkets bar the two cut price German ones are losing trade, Asda laying off thousands this week announced. I have to say that since 2007 anyone who took out a mortgage that stretched them financially could have their worse nightmare come to reality by mid 2015. IMO the economy is not all it is being portrayed as, this guy Osbourne is better than Brown was at using mirage economics to talk his way to get the Tories re-elected . I hate to add that I honestly believe there will be very serious social disorder before the end of 2015. When so much of the money in circulation is fed to buy to let landlords and banks via mortgages it stifles the economy. Houses are worth what someone is prepared to pay for them. I am 70 and have seen a few house price crashes , but the coming crash will make them all look insignificant.

I forgot to add that when people are cutting back on food as they must be and millions rely on food banks you have to wonder about the recovery. If ever there was a time to hold back for a while before buying a house this is it. I could tell some sad tales of past house prices crashing and the effects on relationships and children. Hold on a year and prices could be as much as 30/50% less when this has panned out

I haven't RTFT but I do know that Leeds BS lend up to 75, so an under 50 could still get 25 year term.

Good luck with that one lol. I am seventy and the idea of a mortgage to feed at that age I would imagine would send you to an early grave.
That has to be part of the reason we are where we are in the mess we are in

Er, so Jamie wants us all to rent, not buy, and RonelK is blaming the whole thing on too much money going to "buy-to-let landlords"?? Um.... Who are we supposed to e renting from then? Please don't say social housing, there are enough folks already in the queue for that....

Doom and gloom aside, most of the forum have a desire to live in a house. Maybe (the audacity!) a nice house. With more than one bedroom. And perhaps a garden. How much money that takes is hugely area dependant, and also depends on our savings and salaries. I don't begrudge anyone getting a mortgage if they do the sums and know they will do their best to ensure they can afford the payments. Renting is not the only option here. For some folks sure, but you can't have it the same way for everyone!

I mentioned buy to let and mortgages in the context of pass the parcel. I will explain, we have reached a point IMO whereby many peoples ability to participate in the economy in any meaningful way has almost reached critical . That’s why I mentioned supermarkets downsizing staff and takings dropping in a country where the population is increasing proves my point.Houses are like pass the parcel , if you buy at this time you may well be holding a parcel that is worth much less than you paid for it when the forced sales hit the streets.It.s obvious people are paying too big a proportion of their income on rent or mortgage. This government and the last have done near nothing to solve the housing problem. Cant you see that there wont be bailouts next time , it will be bail ins where people will lose some of their money held in banks. I said hold back for a year or maybe 18 months before buying. Regarding buy to let landlords they have done a lot of damage to the housing market pushing up prices and pricing out many. Live in rented for a while only a fool buys in a market that is so far removed from affordability salary ratio should be 3.5 to 4 not as is in some areas x16
Most of the mp,s are by to let landlords ,so don't rely on vested interests to tell you when the music will stop

Those people who on HPC forum probably never saw bailout of mortgage holders at the expense of savers . Have a look on zoopla or rightmove there are a lot of reductions in asking prices. It has started and if people cant see it they will pay a heavy price. Massive reductions in the amount being lent by banks for purchases has started. I don’t think Osbourne will be able to keep the plates spinning till the election.
The housing market will crash will be a horrendous event this time so don’t mock those people that didn’t play pass the parcel they will have their day

I dont think I would want a mortgage until I was 70, that is a lot of pressure to keep working! However I get your point that the government think we'll be ok to work until this age so why not banks.

I do wish those sad poppets on HPC would fuck off though with their condescending "little women over there on MN" attitude. I read the forum from time to time and am constantly surprised at those wishing for everything to go tits up seemed to have no concept that when the SHTF sniggering at an adult forum that doesn't allow swearing it will bring them down too and the pile of gold they've very smartly stashed will be worthless.

I must be missing something. What is an "HPCer"? I'm not sure why you think i have a ready prepared script up my sleeve, but i don't. If you go over to the Relationships forum you'll find plenty of posts from me, none mentioning house prices. I'm a GP, and i'm female. I also do relationship counselling.
It seems like i've touched on a nerve mentioning house prices. I'm sorry, but i think it is you that are blind. I'll tell you how i know this stuff though. After the credit crunch back in 2007, my DH's business was on the verge of bankruptcy because he couldn't borrow money to help with liquidity. Many of the people we know were in similar positions. His company was very profitable and he'd always met his bank's covenants, but suddenly they wouldn't lend. Jump forward a year or two and with our home remortgaged, we saw that Osbrone was going to launch Funding for Lending, which, we were promised, would reward banks for lending to people like my husband.
Only guess what? He still couldn't borrow. We had to sell our house, at a loss, while he wound down the business. When we'd paid everything off, we had exactly £1,234 left in our bank account. A number i'll always remember.
My now husband got to be quite bitter about it and went digging. It was then that we found out that the banks were using all - not just some, but all - of this cheap lending to expand their mortgage lending business. A bank manager who we know told us why - most businesses, these days, are service businesses in rented offices with leased equipment. In other words: nothing to repossess when the business goes under. Hence, they prefer to lend mortgages, because even in the worst case scenario, there will always be a sizeable lump of asset to offset against the debt.
Osborne's policy (and we are tory voters) has been to do everything he can to push up house prices. But now the EU (not Osborne) is acting to force banks to stress test at higher interest rates and lower income multiples. We are told that mortgage lending is up month on month. It is. But there are fewer loans being approved. This money is not going to first time buyers! And without first time buyers, you cannot have a market.
I've heard the "a crash has been predicted for ten years" line before, in fact i used to spout it myself. But when you think about the £375bn that has been channeled by the government into cheap lending for the banks, you start to understand that even with all this support, outside of London prices have barely moved.
My sister lives in London. She too thought house price rises were inevitable and wonderful. Now she has 4 kids crammed into a 3 bed house. Her house is worth more, but by the time she's paid stamp duty, the difference in price between her 3 bed house and the equivalent 4 bed house is nearly £80,000, which she cannot afford on her teacher's salary.
I say again, house prices are rising because banks are lending too much money. They can do this, because they know the taxpayer will bail them out. It is, frankly, laughable that the privileged few are banging on about house price inflation being a good thing, when really, all they are doing is competing to have the most debt.
As for buy to let landlords, only somebody with a vested interest in property would claim that they are a good thing. I pay nearly £1000 a month for our house. We are told that we can't have a pet. Our landlord is not interested in a longer term than 6 months, which means my son never knows if he is going to be in the same school (we live in a rural area with few rentals). I can't even paint the walls without the landlords permission.
In the meantime, he and people like him are being subsidised by the taxpayer at the beginning of the process (cheap mortgage lending) and at the end of the process (through housing benefit - not in our case, but in many). He has 17 houses that he rents and he once advised me to get involved too - he gets a bit of equity, remortgages, buys his next house. Gets rich off the back of his tenants, claims tax relief on his interest payments (what private buyer can do that?) and proudly boasts that he avoids paying tax when he sells a house by claiming that he lived in it for six months.
How anybody can think that a nation of people living in rented accommodation with no rights while themselves subsidising the greed of others is a good thing is utterly beyond me.
But the crash is coming. When it does, all those buy to let landlords and home owners who have perpetuated the boom will be crying out for help, no doubt.

PossumPoo - ok, so HPCers relates to some forum? I assume given their hatred of women it is like Fathers4Justice?
A house price crash will effect everyone. It will make thousands homeless and destroy the economy. Very possibly, it will result in money being stolen from bank accounts (the IMF is already encouraging this).
Yet, the most likely cause of a crash is a bubble.
Prior to Osborne's help to buy scheme prices were slowly deflating.
It is government policy that has created the bubble, and as we'll remember from Brown's crowing of "an end to boom and bust" nothing is different now and a crash always follows the bubble.

Yes Jamie it's another forum relating to house price crashes. I mentioned them as they linked to this thread in their 'look what the little women are discussing' monotone.

FWIW I think you are right about the crash, I don't know how it will look but prices, imo, in London especially are not sustainable and once it starts to trickle it will fall.

Sorry to hear about your house and business.

Have read the HPC thread as I know the site. They are an odd little group. Most sites welcome a range of opinion but HPC takes great pains to ban anyone who disagrees with their position on house prices and the economy.

Their reactionary and patronising tone towards women (whose opportunity to work outside the home is blamed for HPC due to the effect on mortgage lending) is part of a much broader misanthropy that pervades the site.

To belong to HPC you have to loudly proclaim that you are far more intelligent than the rest of the population of "sheeple". You have to joyfully link to any story that suggests economic suffering or impending doom and rub your hands in glee at the prospect of a financial catastrophe. You have to dismiss every property that isn't a mansion in Kensington as being beneath you, a slum in a shithole, and you have to unleash spittle flecked streams of invective against anyone who buys a house in the current market.

Ultimately HPC'ers would happily see the country burn if it meant they could buy a house at a bargain (I suspect they would buy a few and become the btl landlords they profess to hate given half a chance). [waves - hi guys, still there?]

Meanwhile as someone said above, most of us just get on with it.

In answer to the op I would suggest seeing a good broker. There are options to have a 25 year mortgage at that age but I would strongly suggest that you reduce the term when you go out to work.

You cannot go on the deeds if you are not party to the mortgage anymore.

When the financial crash happened in 2007 they blamed sub prime delinquent mortgages for starting the crash. This time we have forced low interest rates masking what amounts to sub prime loans. Many of the buy to let landlords will go to the wall when rates return to historic levels. Actually IMO it will be when they get to half of the historic level or less. I know a landlord who had 8 properties taken back when he had a void period on one and damage by tenant in another. He has lost his own home. I also knew one of his tenants who has passed away now, who was without heating because the landlord could not fix the boiler due to money problems. He was given an electric heater to heat the house.
A horrible man who could afford a top of the range BMW and did not give a damn about his tenants .
One of the properties went to auction it did not achieve anywhere near purchase price because of it’s badly run down condition.
Jamie the HPC forum members are offering you honoree membership on their board. I must say there was very little in your posts that I could disagree with.
You are up against a Wonga loans enthusiast mentality.

I am a southerner who moved to the north east, I can assure you that I am seeing more southerners fleeing here. Perhaps to avoid the inevitable property crash. Tuesday whilst walking my manic Jack Russell in the park I bumped into yet another escapee. All seem to like it up here where earthy people abound. I am of the opinion that HPC site like any has people with varying opinions on most topics, hence the infighting and banter, Whatever anyone say’s I believe they are a well informed mainly plugged in people. If half of the posters back in the early noughties had been running the economy we would be whistling another tune completely.

Jamie1981?! It's time to come home! Dinners on the table and your HPCer family are waiting to dine with you... It's your favourite, sensible house prices! C'mon sweetie, say goodnight to your friends, you can play with them again after the crash.

I wanted to post that but didn't have the neck , thought it might start a riot.

You caused me to spill my coffee

Nothing creepy about that post then Hpc "Mum"!

Rone why dont you do one back to HPC..you're starting to ramble

Yes we old farts do tend to ramble. but we ain’t drones programmed like some of the ruffians who think like the ad people want them to when the Wonger slider pops on the screen

Good luck anyway I have better things to do than gossip with ruffians lol
(grin)