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Original poster

a new 300k mortgage at 40 is it too much

102 replies

moomin18 · 04/12/2020 12:31

DH and I have been meaning to move for a little while and have finally got ourselves together. Found a nice place and got a mortgage in principle for 300k. All great so far but now am all panicky. We are both 40 with 2DC 1 and 3. We need a bigger house and house prices in London are high, but it's a lot of cash to take on at our age. Anyone got any advice or happy stories of it all being ok?

OP posts:
AmICrazyorWhat2 · 04/12/2020 22:59

@Puppylucky. I think their decision is fine, but I agree that no one can guarantee that a house will sell quickly. It’s definitely good to have a decent savings cushion to pay the mortgage/bills in case something unexpected happens, especially in your 40’s.

Original poster
moomin18 · 04/12/2020 23:17

really useful to hear everyone else's experiences and points of view. I think that this pandemic has messed up with my head and I have now become quite fearful of the future while simultaneously feeling quite old. This thread has put things into perspective.

OP posts:
Smallgoon · 04/12/2020 23:18

@Puppylucky

300k is the mortgage amount not the house price - which I'm assuming is substantially higher. it may not be a mansion but it will still be an expensive house which will have a more limited resale market.
Standard London price. Not sure you could get a decent house in this city for less than £550-600k
FridayWineTime · 04/12/2020 23:25

This is a bizarre thread. So many odd responses. What on earth is the issue with taking on a mortgage at 40? Hmm Are you meant to be in your forever home by then?

So so many mid-late 30s couples are still renting as they have been shafted since they graduated and had a recession a couple of years later. Still shafted now as deposits have gone up to 20%. So lots of our friends won’t be able to buy their first home until 40.

MN really is an alternative universe sometimes but this thread really takes the biscuit! Confused

PineappleUpsideDownCake · 05/12/2020 06:06

Friday. Its the fact its a 300k mortgage at 40. A lot of people wouldnt be able to take that on/pay it off. OP obvoously can which is great! Maybe you just move in wealthier circles than some of us!

PineappleUpsideDownCake · 05/12/2020 06:08

For me its an alternate reality sometimes with what people can afford😉. But well aware there's higher earning couples than us!

CarHire101 · 05/12/2020 06:56

Only on mumsnet do being talk about retiring and being mortgage free in their thirties lol

ThroughThickAndThin01 · 05/12/2020 07:03

We had a £500k mortgage at 40. 16 years ago now, and now down to about £240. It has been hairy at times - 2008;2009 crash - but we will pay it off by 63. It’s meant we’ve lived in the perfect house and we can downsize once all the dc have left home but in the meantime they can come and go as their needs require.

We’ve never been interested in early retirement so that’s not an issue, but if that was a goal I wouldn’t have taken on such a large mortgage.

chloechloe · 05/12/2020 07:58

One of the reasons for us to move into a bigger house for the next 20+ years is so there is plenty of space for our kids as young adults. Where we live in south Germany prices are insane and I don’t see how our kids will get on the property ladder without help. I think it will become more common for adult children to live at home for longer so it would be nice to have a house that could also meet their needs if they want / need to stay.

MrsSDK · 05/12/2020 08:01

Just took on 305k, age 43, on my own over 26 years, go for it!

NeverTwerkNaked · 05/12/2020 08:18

We took on £320 k at 38/42. It did make me wobble despite us having substantial equity. But we definitely needed the space

The things that helped me
-realising that for the amount of our mortgage payments we would only be able to rent a tiny grotty property

  • making a plan to make regular overpayments
-both of us having very secure jobs with good sick pay, death in service benefits etc
  • both of us still having the prospect of more promotions- we have both been promoted since we got the mortgage which has meant we can overpay more and also the monthly amount doesn't feel so painful
NeverTwerkNaked · 05/12/2020 08:20

It also helps that I really enjoy my job so have no wish to retire early (and will have options like flexible retirement too)

Snowman123 · 05/12/2020 08:22

45 and & £255k

Regret it. I'd like to be mortgage free earlier but realistically it's years away.

Tootsietootie · 05/12/2020 08:27

If you would be able to downsize if something happens to significantly reduce your income then go for it!

PresentingPercy · 05/12/2020 08:28

I think if you have two very young children at 40, your life is positioned differently to someone who’s 30. This will apply to mortgages, DC starting university and all the expense inbetween. DC tend to drive decisions. Bigger house, cars, uni money, holidays, fees etc. You just have to accept that this child filled life is starting at 40 not 30. It’s not unusual though and the mortgage is only 3 times joint income. You are not financing it from one income. To get what you want it seems you will have to work but that’s not unusual either. So enjoy your house and your family.

Pikachubaby · 05/12/2020 08:29

I think with 100k income you are very well off, and very well able to pay it Smile

newnamesameold · 05/12/2020 08:32

Change how you think of your mortgage. Look at it as an investment, not a debt. It will take the edge off it!

ScrapThatThen · 05/12/2020 08:39

What's your retirement plan? What term are you going for? Do you want to still be paying it at that age? If so, it's fine. We kept the same term on each new mortgage so it would still be paid by the end of the original 25 years. (everyone feels old and tired in the midst of and just after the small children stage, but it does get better again).

Daisydoesnt · 05/12/2020 08:56

OP the key question for me would be, what term will the mortgage be over? As you have young children you will have their expense already well into your late 50s/ early 60s and I personally wouldn't want to also have the pressure of still paying a mortgage at that age.

You never know what life holds in store and you are relying on you both being healthy and fit enough to both be working full time at that age. Again for me, I'd want to get the mortgage paid off by late 50s at the very latest.

As someone said upthread, it's very noticeable how once you get a bit older (I'm 10 years older than you, my DH is 58) your appetite and ability to work so hard really start to tail off.

And if I were you I'd be getting a fixed rate so you can at least lock into the historically low interest rates.

FridayWineTime · 05/12/2020 08:59

@PineappleUpsideDownCake

Friday. Its the fact its a 300k mortgage at 40. A lot of people wouldnt be able to take that on/pay it off. OP obvoously can which is great! Maybe you just move in wealthier circles than some of us!
Round here £300k is the price of a 3 bed semi!
converseandjeans · 05/12/2020 09:04

If you think about rent & how much it would cost you to rent in say 20 years time - it would probably be more than the monthly repayments. You can always move further out then? Also one day you might inherit some money from your parents?

What is monthly payment on that? We owe £160k but a chunk will reduce in few years as we have an endowment. We pay £1k approx. a month.

kirinm · 05/12/2020 09:05

I'm hoping the bank will lend us £450k when we move and I'll be 43. I am 100% going to be working until my very late 60s.

WhyDoYouAsk · 05/12/2020 09:08

We’re 40 and have just signed the paperwork and been approved for a £430k mortgage 😱 25 year term, joint earning was £104k when we got approved, and I’ve just got a promotion which will bring our joint income up to about £116k.

Would that be around £1800 a month?

PresentingPercy · 05/12/2020 09:11

People retiring early is a dream for most. Either they are state employees with guaranteed pensions payable at 60 or before or people who sell businesses. Most people will expect to work to 65 now. State pensions are later. Trading down a house is normal to get money for older age too. Working life for millions of people is shifting to encompass an older age. Unless you are lucky enough to have a job with a decent pension at 60. This is largely confused to state employees now, eg doctors.

GiraffeNecked · 05/12/2020 09:38

Went from mortgage free to a mortgage that is 17% of our joint income at 50. We are planning to pay it off by 58. Our outgoings are much lower than they were as dh’s kids through university now. It’s manageable and worth it for the extra space and parking.