taking on a 400k mortgage age 42

[gf4567hfdd]

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?

Honestly, if you can manage the payments and it's the home thar your family needs, then do it.
You can always sell it later on. Or overpay when the kids are a bit older.

Totally depends on your earnings. Personally i see property as an asset not a noose with the added benefit that you get to use it whilst the leveraged bit increases in value (long term anyhow).

Do you think that you would be able to overpay during some of the term so that you have it paid off earlier rather than in your 60’s ?

I don’t think it’s a bad idea to do this in the south east but I can see that you might feel that the mortgage is a burden once you are over 60 if it restricts your choices. But by then I guess you could just sell?

I'm in the same exact same position as you @LadyDanburysHat

This is very specific financial to give someone you don’t know!

the answer depends on what you earn, how many years the mortgage is over, how secure your job is, and how you want to spend your money!!

OP lots of people move into heir forties. If it was foolish to take on a new mortgage passed 35 we would all be in our starter homes!

i took on a larger mortgage in my early forties. I am single. It was a sound financial decision and I am confident I did the right thing.

I would not be listening to some stranger on the internet who doesn’t even know how much I earn😂😂😂

Don't be silly. How many people actually do this?

I've got a 400k mortgage at 39, and not even in London. It seems quite normal among our peers I'd say!

No - if the interest goes up - and it will you will be screwed - repossessed and broke - (worst case scenario) I would not sleep at night with that sort of financial commitment.

No - if the interest goes up - and it will you will be screwed - repossessed and broke - (worst case scenario) I would not sleep at night with that sort of financial commitment.

This doesn't make any sense, do you think no one should have a mortgage?

I’ve always been risk adverse and taken out small mortgages. Just in case… Thanks Mum and Dad for raising me to be scared of everything.

My friends who were less risk adverse are now in much bigger, nicer houses then I am, in spite of similar incomes.

Im now moving again, and taking out a bigger mortgage in my early 40s but if I’d just borrowed more and brought the house I wanted 15 years ago I’d be in a much better place financially. It’s probably my biggest regret.

Go for it OP. Housing is an investment.

How do you know? OP hasn’t told us what she earns.

people take financial decisions about mortgages every day. The amounts vary depending on peoples earnings.

do you have a mortgage? How did you cope with the decision?

If it makes you feel any better OP we are probably going to take out a £600-700k mortgage at the age of 47. However, we have about £700k equity in our existing house. My brother has a £150k mortgage but only £50k equity. Who is in a better position?!

It really depends what your priorities are for the next 30 years.

For example, if you want to keep working full time and need more space and are not looking to retire early, then go for it.

However, if you hope to work less and have disposable cash, stay in the flat.

We are 40s and downsizing to a flat with a diddy mortgage because I am a ft carer and we cannot afford our previous, two wage life.

Really? I'm nearly 38 and about 26 years off paying mine off. Not everyone can pay it off and retire at 50.

We took out a 350k mortgage at 40 when our original one was almost paid off to buy our dream home.

If we can no longer afford it at any point we have enough equity to buy a family home with no mortgage.

I wouldn't have done it without a backup plan. We hope to pay it off quicker once school fees and university is finished for our children.

I feel like a lot people our age do have a smaller mortgage.I am torn but our kids are now older and sharing a room seems a lot worse than when they were younger. We do have pensions and our household gross income is around 115k per year

I’d say it’s sadly normal in the south east. As pp said, depends on health, job security and other factors.
Have you considered commutable areas outside of London? Obviously these are still pricey

FWI our yearly income is the same as yours, we have a 410k mortgage. We are slightly younger, older DC though.

I work with someone who has mortgaged themselves to the hilt - she lives in a constant state of anxiety that she will lose her job. Seems to outweigh the benefits of living where she does.

People who can pay off their mortgage in their 40's are very lucky. The reality for millions of others is very different.

I guess you live in somewhere where property prices are low.

I would move as it suits your life now. You can always downsize/leave London later releasing equity at that stage.

We took out at £300k mortgage at a similar age about 20 years ago. I had sleepless nights. But latterly we were able to overpay to the extent that we are now mortgage free.
It made sense at the time and has worked out well for us.

We moved and remortgaged when I was 40, needed more space with 3 kids, two of them teenagers. It means we will be repaying the mortgage til I'm 61 and DH is 70. But needs must. If the kids have all left home we can downsize and pay it off, but there won't be any big inheritance or windfall coming our way and enabling us to pay it off early.

Why is she in constant fear of losing her job? Sounds like a very anxious person. Surely most people wouldn't be able to afford their mortgage if they lost their job.

I'd probably move to a bigger house and take on the mortgage. Especially if your kids are sharing a room and you need more space.

You can always sell the house when the kids are older and downsize again to facilitate a more comfortable retirement? X