taking on a 400k mortgage age 42

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We are considering moving into a larger family home from a flat which would increase our mortgage from 250k to 400k, sadly house prices in London are so high. A we're both 42, this would extend out mortgage until our mid 60s. I read on here how people hope to be mortgage free by 50 or 60, so would this be foolish of us?

No one can answer this but you. A lot depends on your earnings, job security, health to keep working longer and other personal factors which will vary wildly.

Do you need/really want to stay in London? Personally I would hate to take on that kind of mortgage at that age, but I want to retire earlier and consider private secondary for the DC. Those may not be factors for you.

What would it mean in terms of monthly payments as a proportion of your income?

Yes, very foolish.

At 42 you should be thinking about starting to pay OFF your mortgage, not taking another one out.

Well van you afford it with no hardship? What do you earn and are your jobs safe? Could you cope with interest rates rising. If its well within your means its not a problem but otherwise yes crazy.

Life can throw all sorts of unexpected events at you (it has at us) so I would err on the side of caution if I was in your shoes. You could buy a nice house in a cheaper area outright with the value of yours and be mortgage free. If you can pay the new mortgage monthly payment on one salary it’s less risky but I would value the freedom personally of having no mortgage to pay.

I would say not unusual especially in the south east. Our intention was to pay off our mortgage when we retired and downsized otherwise we would have been living in a small house all our lives! We have now retired and moved to suffolk and are mortgage free.

It sounds like a small mortgage with which to achieve that. If you can afford it it probably a good use of the money.

What s the alternative? Rent bigger homd keep smaller flat?

It may be better "renting " securely from bank thru mortgage than not?
Do you have good pension? , a lump sum can pay off the remaining mortgage? At 67 say

Msny people are stilloqying mortgage into retirement
Only you can know
If you need bigger house or not
If you have both good incomes snd paying into good pensions then why not
?

At 42? I've just taken out a 35 year mortgage at the age of 35! Which I don't think is at all unusual in the South East. Are people these days really starting to clear their mortgages in their 40s?!

What is the hpuse valye? If 400k is half tge value
Then there is contingency
not many hiuses london fir 400k..

Seriously?! We're taking the next step up and it's the only way we can do it, we'll be mortgaged to 65.

I had to remortgage at 42 or thereabouts as I was divorcing and had to buy my partner out of the house. I'll be paying my mortgage off until I am 67! well unless I come into money before that... It's not uncommon, life doesn't stop changing and ultimately if you can afford it and it's what your family needs then I'd do it. I don't see housing market slumping any time soon, especially not in London. You might need to do it sooner rather than later as they length of the terms you're offered will become shorter the older you are.

I've recently done this - £190k to £420k. I'm in my early 40's and it will take me to 69!
The additional space is a necessity at the moment and the house is lovely. I over pay a relatively small amount on the mortgage monthly and the calculator is telling me I will knock 5 years off that. I will probably pay significantly more off per month from next year.
However, whilst we love the house, we won't need this amount of space forever. It's perfectly possible we'll downsize on retirement and that would pay the mortgage off. There are other variables too so who knows!
I feel like the increase is a considered risk and it enables us to live the life we'd like today.

We’re looking at £500k for a £1mill property we have 50% equity.

Same age!

If it makes you feel better, I've just bought at 42 (and DH is older) with a bigger mortgage than that. I suspect with less equity too.

My view was it's this or not but, and better paying principal and interest than rent. Unless there is a complete market crash over the next 10 years, we're not likely worse off than we would have been without the mortgage.

It's mildly terrifying but I don't think 42 is too old for that level of a mortgage at all. Question is whether it's affordable.

*not buy

We'll be doing this at about the same age. We have an ok three bed semi, but in a couple of years should have the money for a mortgage on a better three or four bed detached, hopefully in a better street.

With people getting on the ladder later, they will inevitably take the 'next step up' later as well. We were early/mid 30s when we bought our first home. So will be early 40s when we buy our next one.

CHRIST, NO.

How will you save for a pension with a massive mortgage? Do you really want to be working until your mid sixties to service a massive mortgage?

People will be along soon to say that you will pay it off early. How? You are probably at peak earnings now. You’ve no chance of going part time at eg 55 to do the things you enjoy outside work.

Pay off your mortgage in your early 40s???

back in the real world…

can you afford the repayments OP? What about if (when) interest rates go up?

when are you planning to retire? Do you have critical illness/life insurance?

Now once you’ve answered those you’ll have your answer.

but in principle… lots of people do this, it’s normal.

Why would you assume she isn't already saving for a pension?

She hadnt given the income
Expenditure
Pension contribs

Maybe the extra mortgage payments do not eat into pension contribs at all

Maybe she has a large potential tax freee lump sum on retirement
So no one can say
Yes no
Without full info

It's normal to get a mortgage in your 40s, either as a first home or a move.

I've done this recently so I know its a bit scary!

However, we have bought a property in a prime location which has already gone up in value considerably. I consider it a brilliant use of money and a sound investment, we have a decent and stable income. We have around 50% equity so should it all go tits up we will be able to buy a smaller property with the money we make from the sale and be mortgage free.

Also we are going to hammer the overpayments in the first 5 years in order to remortgage at that point and bring the term down well out of our 60s.

I was miserable in my old house/area and I now live in my dream house and it has massively improved our lives. We don't spend a lot on cars, holidays etc so this is our big spend and I don't regret it at all.

She’s increasing her mortgage from £250k to £400k. The cost of living is increasing rapidly. Where’s the extra money coming from? She can’t cut back much on food or energy.

In any event, the 40s and 50s are when most people would up their pension contributions, to prepare for retirement. The OP can’t do that. Her discretionary spending will be eaten up by her £400k mortgage. If she were loaded, she wouldn’t be asking the question.

Hmm interesting.

We took out a £260k mortgage in our early 40s moving from a small flat to a 4 bed house (in London zone 2).

On balance it has been good as throughout the pandemic we had lots of space and an office with lots of space for DC.

We love our jobs and don't have any dreams of retirement.

If that changes we could sell our house. We had 60% equity and the house has gained about £200k in value (although that might not hold I guess).

So - do you have an exit strategy if you want to be mortgage free?