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!

We got a mortgage to 75 at similar age. We did though have a substantial deposit and a clear plan for clearing it sooner (sale of another property). Both in 'safe' careers.

We bought when I was 41 and my partner 56. We took a 15 year mortgage on 180,000. Our payments are high. You will need a very, very good income to be able to afford such an expensive house. You will also a short mortgage term. I would look at buying somewhere cheaper. Otherwise you will be forced to work much longer than you would like or be able to in order to pay the mortgage.

You may have considered this already , but depending on how near to starting secondary school your children are, and how much competition there is for spaces, is it not worth continuing to rent whilst applying ? House prices can rocket for a good location near to a good school.

Thanks for all the feedback and suggestions.

We have been looking to continue renting but there are very few properties on the market at the moment that are within the school's tiny catchment and the ones that come up are very expensive.

Our rent is already ridiculously high (over £3k/mo), so we do feel the benefit of renting (flexibility) is past. Neither of us really wants to leave the community we're in, but the prices further afield are tempting and we havent' 100% ruled it out. (And I'm researching schools in some other other areas.)

We're self-employed; DH earns well in a career in which he is very well-established, and we've made some investments that we hope will pay out in the the next few years, but aren't sure things.

We sorted out life insurance for DH last year, and got a policy big enough to potentially pay off a mortgage the size we're now looking at, should anything happen to him. We don't anticipate any big inheritances or other support from family.

Ignore posts about only being able to take 65 years.

There are quite a few lenders (including high street) who are willing to lend 25 years to a 50 year old. Some will want to see what income you get in retirement from pensions but others unless your work contract says you have to retire at certain age will just treat it same as 20 years.

What we did find was the lender who was willing to lend the most would only go to 20 years.

Definitely speak to an IFA as they can do all the detail.

At 47 TSB were willing to give me a 22 year term with no proof of retirement income.

Anything over 70 would have been difficult with them I think.

Well, initial research on London & Country looks pretty promising -- thanks for the suggestion.

That said, prices in our area are so depressingly high ... it's really tempting to make a more drastic move, even though I've done all the local secondary school vetting. That's for another thread, though, I suppose!

I bought 7 years ago at age 48 and got a 26 year mortgage with Santander, as I wanted to spread out repayments for longer to make them cheaper. I work in a white collar job and just told them I didn't plan to retire until age 75, which is true, sadly as I have little in the way of pension arrangements. I have the capital now to pay it off though if necessary.