Advice for first-time buyers who are nearly 50?

[edeluna]

After a lifetime of renting (mainly due to lots of moving around, including to different countries), we're thinking of buying for the first time, as we near 50. Our kids will soon start secondary school, so we don't anticipate anotherbig move and the flexibility renting has offered won't be as valuable for the next 12-15 years.

Where we live is very expensive, and we'll be lucky to find a house under £1m. We have some good savings and solid income and no debt, but would still need a mortgage to cover most of the cost (maybe 80%).

(Have thoughts about moving further out from where we are, but neither of us is that keen, though the prices are tempting.)

I havelots of questions, as this is all new to me. Have seen lots of online resources but was wondering what are the best resources you know of for newbies tothe housingladder (esp for older first-time buyers)? Are we likelyto need a mortgage broker? Is our bank the best place to start?

Thank you!

Am I reading this right? You need an 800k mortgage that is likely a 15 year term? Of do you mean you have 80:to put down. Have you looked on a mortgage calculator as to how much that is a month....
£5k a month if on 800k over 15 years even with low interest rate...

I would always advise using a mortgage advisor. In your 50s you will only get a mortgage term of about 15 years so you could really do with the best deal you can get. Our mortgage advisor cost £250 I think, and included in that does our remortgages.

The monthly payments will be huge given you won’t be able to do the usual 25 year term and you need to borrow a high amount. I would start by doing some online affordability calculators to see how much you can borrow and roughly what the payments may be.

My FIL’s mortgage was due to run until he was 75 so surely they can get longer than 15 years on the mortgage?

I would advise extreme caution - obviously I don't know your employment circumstances and indeed you may be self-employed - but please be aware that as you reach your 50's you become increasingly vulnerable to redundancy and all those certainties you think you have can suddenly disappear. Personally I would limit my ambitions a bit, what you are planning to do sounds extremely risky.

What, do people think over 50s don't move or require a mortgage? How patronising.
You can get a longer mortgage- it doesn't stop at 65 any more and that is no longer retirement age anyway.
But regardless, unless you are planning on staying there for more than 25 years (or not overpaying to reduce it) it doesn't matter. You are far more likely to move, say after your kids have left home, and you can pay it off and downsize.
I would recommend life insurance though. My husband passed away at 51 and I had to sell almost immediately as our mortgage was huge (and his life insurance did not cover it and I would not have been able to qualify).
Get a broker to ease the process and get you the best deal.

Not sure what everyone is on about. Sounds like you need a £800k mortgage against a £1m property over a standard term like 25 years.

Google mortgage calculator to work out what you can borrow / afford against your income. If you can’t afford to borrow that much, or noone will lend it to you, you may need to look at different areas. If you can afford it, good for you. Your probably already know that rightmove is a great resource.

Speak to a mortgage advisor for a free chat before deciding whether to hire them, but also look at moneysupermarket.com. (Our mortgage advisor claimed to be completely impartial, and to have access to the whole market, but he did not recommend the cheapest mortgage for us... The cheapest was one I noticed online...)

Do lots of googling until you 100% understand the purchase process.

Hirea proper solicitor who answers the phone not a huge conveyancing company where almost noone is a lawyer or will talk to you if you need help.

The house market is harsh, it is common for sellers to change their mind and sell to a higher offer, even after they have accepted your offer and had you spend thousands on fees. Happened to me twice at total cost of £6000. So try not to spend too much until contracts are exchanged.

If buying a new build, or in a chain with someone who is, do NOT agree to an opened ended completion date. The developer will say this is compulsory, but everything is negotiable and I did manage to negotiate a fixed completion date despite being told by the estate agent this was impossible. If you agree an open date you could spend many months in a chain, paying rent all the time. I know someone who got stuck in a chain for a year.

If you see a property you love, snap it up and don’t haggle too much unless it has been on the market forever.

Exciting times, good luck OP!

hate to say it, but at 50 think ahead. The idea that we are hale and hearty into our 70s and beyond is not necessarily the case. Think flat garden, enough space but not too much and definitely a toilet on each floor!

I’ve found the free brokers at London and Country great. They will happily advise you in principle and help you work out your budget.

Talk to a Mortgage broker and see what they can offer.

Will you have really good pensions that you will enable you to be able to continue with a mortgage past retirement? Or would you be able to downsize at that point?

Is there any chance that you might get any inheritance at any stage? (never something to be relied on, of course)

To get an £800k mortgage over any term you'd need a joint income of about 175k a year. So unless you have that it's a non starter

What, do people think over 50s don't move or require a mortgage?

Completely normal where I am

We've just moved. I'm in my 30s but dp is 53. The longest term we could get was 17 years.

What, do people think over 50s don't move or require a mortgage?

It's just that most people buying in their 50s have substantial equity from the sale of previous property. They are likely to be borrowing a smaller promotion of the value of their property.

Of course it can be done, but the bank will want proof of pension plans etc.

Proportion not promotion.

You will need an income of about £200k to secure a £800k mortgage, and yes in your 50s you will struggle to get one for more than 15 years.
Speak to a broker ASAP

Why are mortgages going to 65 ? i always thought was 70 and seeing as retirement is 68 surly it should go to that at least

They aren't in their 50s yet though. They're nearly 50, which isn't the same thing.

They aren't in their 50s yet though. They're nearly 50, which isn't the same thing.

My colleague bought at 42, on a 20 year mortgage as a first time buyer. Even at that age he had to jump through extra hoops to prove that he would continue to have an income after 60 (even though he won't be retiring at 60).

My cousin just got a 27 yr mortgage at 41 for next home.

No particular hoops & borrowed x 5 but had good deposit & earn 6 figs

Loan to deposit would be better at 65%-35%. It’s often cheaper if you can do that. Could your sights lower a bit?

You want to buy a million pound house in your 50's?? Doesn't seem like the best idea.. if you want to buy why not move somewhere cheaper ? Most people with those value houses have worked their way up the ladder so have equity to help them along the way .

@notdaddycool

I’ve found the free brokers at London and Country great. They will happily advise you in principle and help you work out your budget.

Totally agree. They got me a 5x my salary mortgage and it cost me nothing

www.money.co.uk/mortgages/how-to-get-a-mortgage-if-you-are-an-older-borrower.htm

Better to have bigger deposit
Or are you super high earning?