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Original poster

taking on a 400k mortgage age 42

154 replies

gf4567hfdd · 06/07/2022 14:32

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?

OP posts:
collieresponder88 · 06/07/2022 19:36

My god what kind of salary must you have to be granted that amount of mortgage ! I'd be wanting to pay it off not add to it

Littlegoth · 06/07/2022 19:37

I’m 40 and don’t own a house. Deposit still building. I must be an absolute idiot!

Littlegoth · 06/07/2022 19:38

Seriously though, due to house prices where I am my mortgage will be a similar size. We will be paying it well into our 60s x

NorthernPud · 06/07/2022 19:39

Last time DH and I moved, we remortgaged until he was 67 and I was 64. We hoped we would clear it sooner but it was the only way of moving to a larger house with a garden. 8 years on I'm really pleased we did so as we're clearing the mortgage at double the monthly repayment due but we can afford that now (we couldn't then) and I would be mindful of rising interest rates at the current time and a potential dip in house values which could affect remortgaging value further down the line.

Mellowyellow222 · 06/07/2022 19:46

collieresponder88 · 06/07/2022 19:36

My god what kind of salary must you have to be granted that amount of mortgage ! I'd be wanting to pay it off not add to it

But everyone pays off their mortgage!

do you mean you would expect to be mortgage free at 40?

I took on a big mortgage on my own last year. It will be paid off when I turn 60.

I think it is worth it - my house is beautiful.

this is my third move and I am really lucky that I have been able to move from a small flat, to a small three bed to a larger four bed.

I am still building my career - have another twenty five years (hopefully) of work and hopefully at least one more promotion.

life is about balance. As long as I can afford meals out, good holidays and a sensible level of savings why wouldn’t I have a relatively large mortgage?

its absolutely okay to be paying off a mortgage in your fifties - we all have different priorities. I could be mortgage free now on that little flat - but that’s not where I want to be at this age and stage if my life.

DiamanteDelia · 06/07/2022 19:49

Sounds fine to me unless you’re planning to retire early. If plans change, you can downsize. It’s not a particularly large mortgage given your income.

Confundo · 06/07/2022 20:02

Jeez, some of the comments here! We took out a £385k mortgage at 40, and we were first time buyers. People are buying later, so will of course end up with mortgages into their 60s.

CandyLeBonBon · 06/07/2022 20:05

Are people these days really starting to clear their mortgages in their 40s?!

Only on MN! In the real world this is the reality for a lot of people, including people who have divorced and started again. My mortgage is due to finish when I'm 67.

That's life really!

leccybill · 06/07/2022 20:18

I've just paid mine off, we're both 42. It was a 100% mortgage too but we live up north and it's cheaper.

thefatpotato · 06/07/2022 20:19

Have just taken on a bigger mortgage than that, I'm 36 and DH is 41. We borrowed 65% of the house value though, and this is the forever home. We also have 12m worth of living costs in savings so for us it felt like the right thing to do. How else can you buy a family home in London, without any help from parents?

plugee · 06/07/2022 20:27

The government are taking about 50 yr mortgages to help people on the ladder & yet here it's crazy to take on a mortgage in your 40s!

GOODCAT · 06/07/2022 20:28

At 44 I increased my mortgage by £120k to move to a more convenient location. I extended to repay by 68, but I am on track to do it by 57 and could make it earlier. I could always move again if circumstances changed. My only concern was if house prices fell, but even then the worst that could happen was bankruptcy and that was just as possible with a small or large mortgage.

8 years on the improved location was worth it and I saved some money in transport costs and a lot of time. I will be working until I reach state retirement age and I like work, so that is not a problem, unless circumstances change and work gets harder to find or my health isn't great.

That said life throws up both good and difficult and you try to make sensible choices bearing in mind the pros and cons. You just have to be happy to live with the cons and love the pros in the meantime!

INeedNewShoes · 06/07/2022 21:03

We do have pensions and our household gross income is around 115k per year

I think this sounds ok - so the mortgage would be 3.5 times salary?

As long as you're fairly sure about your job security and if the house would improve your quality of life a lot and you feel like to expect to want to stay in the property and in the area for the foreseeable future, I would absolutely do it.

I have a much smaller mortgage but it's 7 times my current salary! Things are tight but it's much cheaper paying the monthly mortgage payments than it would be to rent around here.

2Hot2Handle · 06/07/2022 21:53

No, not foolish at 42. Don’t forget as time goes on and you pay off more and more of the loan, the monthly costs will go down. You can choose to pay less per month, or reduce the payment term and pay more. Just ensure that it’s a home you’d be happy to settle in for a long period of time.

Nowisthesummerofourdiscontent · 06/07/2022 22:45

I’d take out the bigger mortgage. You need a bigger house and it’s not 4x your income. You get to enjoy it every day and when/if the kids move out you can always downsize. We moved to a bigger house in our 50s (with pre teens) and intend to stay to our 70s. I haven’t regretted it and love the space and privacy!

Iamthewombat · 06/07/2022 23:09

Don’t forget as time goes on and you pay off more and more of the loan, the monthly costs will go down.

That isn’t how mortgages work.

Ballsaque · 06/07/2022 23:12

I’m 45 and live in London. Most of my friends will have mortgages til mid 60 age. We are not high earners so this is normal no?

Original poster
gf4567hfdd · 06/07/2022 23:15

Its weird that we dont talk more about this. I dont know my friends' mortgages. Many of them left London in their early30s while most people who stayed are high earners. Was considering taking out a mortgage over the whole life of the mortgage to fix interest rates.

OP posts:
PeekabooAtTheZoo · 06/07/2022 23:56

Following this with interest. I'm currently mortgage free, and moving from the back end of beyond (Donegal) to London, so when this sells, I'll be looking at that sort of mortgage on a house, or going with a flat and having a smaller mortgage.
I'm pretty sure the trajectory in London isn't to get mortgage-free but you downsize and take the extra money out to pay off the house and fund retirement?? Mortgage free isn't the only way to be financially stable and it can be a false measure of success.
How do you feel about gardening, OP? I know that's not a financial decision but I've found I'm looking forward to renting a flat and not having to mow a 100ft lawn by hand by myself every bloody week or two in summer. I enjoy gardening in general though.
What do you think you'll like about a house that will offset the higher payments? What don't you like about your flat aside from lack of space? Would a bigger flat suit you better or do you have your heart set? How much worse will the repayments be and can your salary absorb them?
When you're 80, will you regret not going for it and buying a house or will you regret paying a higher mortgage and doing less?

EmmaH2022 · 07/07/2022 00:10

Only you can choose
is there a compromise where the DC get own rooms, maybe a bigger flat or smaller house?

JaninaDuszejko · 07/07/2022 00:18

Well DH and I have a household income in the same region as yours and live in the north but at 47 we bought a bigger house and took on a 20 year mortgage which will take us to state retirement age. There are lots of people on MN obsessed with paying off their mortgage to the detriment of pensions and other savings. With DB pensions you are lucky and can afford to spend on a house. I can't imagine what it must be like living in a flat with 4 people, my teenagers hate being in the same room as anyone else! Buy the house.

Iamthewombat · 07/07/2022 00:38

Who said that the OP had to be ‘obsessed with paying off her mortgage to the detriment of pensions’? Nobody. A PP noted that the OP would be better off thinking about starting to pay off her mortgage rather than increasing it by £150k, which is different.

The point is that the OP is taking on a much bigger debt, which she’ll need to service. That will take away her discretionary income. She’ll have less to save into a pension and her options reduce.

Reading about so many people taking on large mortgages in their forties, which they will be paying until their sixties and beyond, are you surprised that prices are so high? Prices will adjust to the amount of money being created and lent, which is now chasing assets. You might attempt to rationalise that with ‘I can always downsize’ etc., but you can’t bank on prices being high when you sell.Taking on a big debt, even secured on an asset, is a big risk.

Viviennemary · 07/07/2022 00:38

If you have good secure jobs then why not as long as you are prepared to work on for the number of years your mortgage extends to. But bear in mind a drop in property prices is being predicted.

mellicauli · 07/07/2022 01:02

We did this. Overall worth it but 14 years in I'd say it's been a bit of slog.

I also think it depends a bit on the industry you work in. Look around the office. How many grey heads can you see? Some sectors are kinder to ageing workers than others. During a downturn, old and expensive usually the first to go.

D0lphine · 07/07/2022 01:15

DenholmElliot1 · 06/07/2022 14:49

Yes, very foolish.

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

Lol!

What year do you think it is! People can't get mortgages at like 21 any more! Christ! Some people buy their first property older than 41!

Get your head in the real world.