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Original poster

Mortgage in your 50s...am I mad?

95 replies

Greenfairydust · 08/02/2023 18:15

So, I am looking at buying on my own in a new town after leaving an abusive relationship.

I have a large deposit after the sale of the family home but would still need a small mortgage.

I have been looking at various flats and houses and to get anything decent I would need a mortgage of about £70,000 - £80,000.

Am I mad to take this on at 52?

My income isn't huge (about £30,000 a year an unlikely to go up) and I am concerned that as I get older health issues might get in the way of work.

Or should I be more realistic and go for the ''not so nice'' places I have seen and cut the mortgage down to £30 -40K?. By not so nice I mean street that are still fine but a little bit run down or on B roads (so with some traffic). I am looking in a very safe, small town overall so even the less desirable parts are still pretty decent to live in and close to all amenities, especially for someone like me who lived in some rather dodgy parts of London.

Has anyone got a mortgage on their own in their 50s since the recent rates increase? was it an issue to get a bank to lend to you? did you have to go through a broker?

I am really torn as to whether I should go for an ''affordable'' home in a less than brilliant location and be quickly mortgage-free or still try to get a nice home that would be at the top of my budget so would make it tricky to do renovations/repairs if needed and might become an issue as I get older.

Any advice from older house buyers?

OP posts:
45Degrees · 08/02/2023 18:41

I think you've answered your own question in your last paragraph!
It sounds like there are far more positives to being mortgage free sooner. The safety net of some spare cash as you get older for repairs etc, while still being near the amenities of the more expensive houses.
If there's not that much difference between the affordable area and desirable area, I'd choose a smaller mortgage!

RaininSummer · 08/02/2023 18:50

If you go for bigger mortgage, could you consider getting a lodger as that will help you pay it off more quickly?

Towntroubadour · 08/02/2023 19:02

I think it really depends on the difference between the types of houses and their location. If the town is generally safe and there’s some roads that are maybe a bit less desirable but on the whole fine and safe, I’d probably lean towards being mortgage free.

Original poster
Greenfairydust · 08/02/2023 19:06

''@RaininSummer
If you go for bigger mortgage, could you consider getting a lodger as that will help you pay it off more quickly?''

I am looking at smaller house with 2 beds and 1 bathroom, but yes a lodger would be possible to help with finance if needed but I really would rather avoid that.

45Degrees · Today 18:41
I think you've answered your own question in your last paragraph!

I know this is the sensible option but I saw a house I really love today for a second viewing and it is really hard to let it go as I love the street too! but realistically it is over my budget and would likely need some work so even if they were to go for a cheeky low offer it might cause issues later on.

I would really like to have money left for travelling for example rather than always be worried about repairs and mortgage...

OP posts:
Nadal · 08/02/2023 19:10

If you can afford the repayments until
your retirement, then go for it. 52 isn't that old

TippledPink · 08/02/2023 19:15

Go for it! My husband is 53, we are getting a £400k mortgage in a couple of months!

TippledPink · 08/02/2023 19:16

Just to say we did go through a broker yes and didn't have many issues, Jsut a shorter loan period.

Mum2jenny · 08/02/2023 19:19

If you can get a 10 or 15 year term mortgage, it would be cleared before your state retirement age. I’d be trying to see how much you can get and can afford with a 10 year term.

titchy · 08/02/2023 19:19

Repayments for a 12 year term borrowing £80k would be £700 a month which sounds reasonable for your salary. I'd say go for it!

Saz12 · 08/02/2023 19:20

What’s your pension look like...? And have you the kind of job you’re desperate to retire from or are you happy to work longer? The extra mortgage over 15 years would be something like £60k after interest (depending on rates). So that’s going to delay retirement quite a bit.

And how much of a homebody are you? If you were to parcel up your life as to what %age each bit is worth to your happiness, , what would it look like? Homelife, beauty, work (or retirement!), consumer goods, entertainment, travel, financial security, lovely food, etc.

If it comes out as 5% travel and 95% home, then clearly the mortgage makes sense. But if it’s 5% home, 95% travel then buy the cheaper one.

Elsiebear90 · 08/02/2023 19:21

I would have said a year ago go for it, but my MIL did this, she’s now in her 60s and has developed health problems and doesn’t think she will be able carry on working full time until she’s 70 (when the mortgage term ends). She’s in a bit of mess tbh and very stressed, it’s likely she will have to sell her house that she loves and downsize to a flat.

If you are lucky and have good health then it can work out great, but no one can predict the future, so I would be very wary of committing to a mortgage in which you need to work full time past your early 60s.

kitcat15 · 08/02/2023 19:34

Do you have critical illness cover? Does your company provide ill health retirement Pension? I would be asking myself these questions.... no one knows whats round the corner but at over 50....ill health is more of a worry.....do you get 12 months sick pay if you were to become ill? .....if the answer if no to any of these....then definitely a smaller mortgage

AnotherSpare · 08/02/2023 19:36

Buy the more expensive but nicer home. You are only 52 FFS, you could be working another 20 years. You're going to be living in your home, you need to love it.
If life goes wrong and you need to raise cash, you could always sell and buy somewhere cheaper further down the line.
I was only able to buy for the first time in my early 40s. I'll be moving somewhere bigger and therefore taking on a bigger mortgage age 50 too. It doesn't scare me.

kitcat15 · 08/02/2023 19:38

titchy · 08/02/2023 19:19

Repayments for a 12 year term borrowing £80k would be £700 a month which sounds reasonable for your salary. I'd say go for it!

Are you saying this as someone in their 60s? Or are you younger? ...when I was 50 I thought I could work full time till state pension age.....I ended up taking my pension at 56....and retuning on 3 days...I'm now 58 and will go completely at 59 ...I'm done.

FenghuangHoyan · 08/02/2023 19:39

I'm older than you with a larger mortgage than the one you're thinking of getting if that helps.

kitcat15 · 08/02/2023 19:40

AnotherSpare · 08/02/2023 19:36

Buy the more expensive but nicer home. You are only 52 FFS, you could be working another 20 years. You're going to be living in your home, you need to love it.
If life goes wrong and you need to raise cash, you could always sell and buy somewhere cheaper further down the line.
I was only able to buy for the first time in my early 40s. I'll be moving somewhere bigger and therefore taking on a bigger mortgage age 50 too. It doesn't scare me.

Brave? Or stupid? Or somewhere in between? .... it wouldn't be me....but then I'm not a risk taker

Original poster
Greenfairydust · 08/02/2023 19:41

This is the type of houses I have seen:

-£300K: really nice quiet streets, lovely gardens but houses that need work. would mean at least a £70 - 80K mortgage and plus updating needed which could be expensive so probably unrealistic.

www.rightmove.co.uk/properties/126809087#/?channel=RES_BUY

www.rightmove.co.uk/properties/129499808#/?channel=RES_BUY

-something I could get for £265K (the average that these house were sold on theses streets). 2 bed Victorians on less desirable streets with some traffic. £50k mortgage that I can definitely repay with 10 years, no real need for any works as have been well maintained with recent boilers/roofs and gas/electricity checks

www.rightmove.co.uk/properties/130559741#/?channel=RES_BUY

www.rightmove.co.uk/properties/129832181#/?channel=RES_BUY

  • Flat for £250K, share of freehold, no work required but on really busy road. Also concerned there is no sinking fund.
www.wilsonrealestate.co.uk/site/go/viewParticulars?propertyID=647261

There aren't that many flats in this town and I don't want to be added with high service charges anyway.

OP posts:
mairerua · 08/02/2023 19:42

Buy the more expensive house, it will be a better investment if the shit hits the fan. Also lodgers could help if it becomes too expensive in the future. Buying a house is always nerve wrecking at the time but won't seem like much in comparison to rent in twenty years. As a woman living alone, I woud always pick the safest, nicest location for emotional well being. I'm financially conservative but that doesn't mean always going for the cheapest option.

Ohalpro · 08/02/2023 19:44

Don’t buy the flat. Without knowing the areas I would say the cheaper houses look lovely!

LadyVictoriaSponge · 08/02/2023 19:49

I much prefer the cheaper houses!

titchy · 08/02/2023 19:51

Are you saying this as someone in their 60s? Or are you younger? ...when I was 50 I thought I could work full time till state pension age.....I ended up taking my pension at 56....and retuning on 3 days...I'm now 58 and will go completely at 59 ...I'm done.

I'm mid 50s with a mortgage that has ten years left. Work full time and see no reason why I shouldn't be able to continue.

notangelinajolie · 08/02/2023 19:51

I would buy in the best area. If things go pear shaped you won’t struggle to sell it. I wouldn’t buy a flat for that reason.
Go for it.

Michellexxx · 08/02/2023 19:52

The cheaper houses look more appealing but thats because, as you said, they are decorated etc.

I would always go for the better location and more potential to add value. You could do things like cat sitting/air bnb out one room if you needed to.

Zuma76 · 08/02/2023 19:52

It’s really personal choice but I really like the look of the two cheaper houses. Deal is lovely. It’s not massively busy even on busier roads. They don’t look like a massive compromise and actually probably easier to maintain.

Schnooze · 08/02/2023 19:55

I much prefer the look of the cheaper houses. Go for one of those.