Single people over 50 - what’s your mortgage?

[70sBaby]

Hello,

Divorcing and need to buy another house. I’m 51 and a half. NHS band 7 with retirement age of 67 (stressful job so I was hoping to drop hours at 60 or move into a less stressful role).

Can I be cheeky and ask any over 50’s what your current mortgage value is and how long you have to pay it/costs. Any ideas about using pension lump sum to pay it off.

I’m looking for inspiration as I could either get a poor house and be mortgage free or get something nice and have a mortgage but don’t want to end up with no disposable income as I want to live! Also, I have 2 children - one starts university next month and moving out. Other one is 15.

Just wondering what sort of ball park figure I should look at.

Currently, mortgage free and have been for years but I have to give my stbx 50%. The house will go up for sale next month. It’s too big with high maintenance costs for me on my own. Plus, I want a new start.

Considering a new build but I love old properties for their character!

Hey there. Not much help on mortgage because when I divorced recently aged 48 I had enough (just) to go mortgage free. Kids similar ages I did sacrificed on area a little - but still close enough to schools etc. I did however go for a new build having always gone for period properties in the past.
absolutely love it in terms of low maintenance, low bills, and a good developer who has dealt well with snags etc.
You do take a hit tho on buying a NEW new build - they have a premium. tho at moment good deals to be done as builders will want to shift stock. Having them up against a quarter day or year end helps to get a good deal too.

A second hand new build can offer good value tho.

Sorry slightly off topic

I’m swaying more towards a new build tbh. No chance I’d get one mortgage free though! I’ve been fleeced by stbx!

Similar age here, I went with a 7 year old new build & mortgage of 70k ish, costs me £400 a month, on my old fixed rate, which would be more like £600 with current rates. Much easier in a new build with regard to maintenance, having spent thousands in old houses previously. Mortgage runs until I’m 67 (another 16 years) but planning to pay off what is left, at 55 when I access first lump sum. I guess it’s a calculation on whether maintenance & improvements will take more of your disposable income. I think I earn quite a bit less than you. If you can afford a small mortgage then I’d be tempted to buy something which isn’t too much of a compromise.

I wouldn't touch the average new build. Most are on soul-less and cramped estates. And many are even charging an annual service fee (ridiculous). To cap it off, the quality of the build is often very poor. You can find examples of this on YouTube (look for snagging videos). The builders make a margin of around 20% (used to be 30%) on new builds - indicating how overpriced they are.

If you don't have pets, you may wish to consider renting while your 15yo is still in local education. Then move and buy in a better value area if one is available.

I'm not sure what your definition of a poor house is. I advocate buying the smallest/cheapest comfortable home going. Low council tax, low utility bills, low insurance, etc.

54. Currently 99k on mortgage, clearing it all in under 3 years when my fixed deal ends (investments, decent job, savings). It will be paid off when I'm 56. I wouldn't want a mortgage much after that age OP.

I hear you on character houses, I bought a victorian semi. I love it, but I'm slightly regretting the refurb costs. Saying that, new builds come with their issues, and modern estate layouts generally dont offer the same space and privacy. Ideally I'd want a new build, built with character (they do exist) with space around it. Good luck OP.

My son bought a lovely Bellway detached new build. He has not had problems with it and it has changed my view of new builds. I have paid off my mortgage this year but will certainly be carrying on working as long as I can.

Thanks all. I’ll see what my options are - I need to see what I can afford first

I could not get a mortgage and bought a flat right at the bottom end of the market. I would have probably gone with a small mortgage and a small house had i been able to get a mortgage.

I’m thinking of looking for a two bed maybe with a loft conversion as I still need 3 bedrooms.

I was in a similar position to you OP and kept the family home on for four years and sold last year. I was not able to find something I wanted in the right timeframe so I rented for nine months. This was really helpful because it made me realise that I didn’t want to actually downsize as much as I thought I did and I wanted something low maintenance and above all warm.

I’ve opted for a five year old new build. The utility bills are a third of those at my previous house and the house is really well insulated, I think I’ll have a much warmer winter this year.

My XH is very sniffy about my choice of location, but fuck him.

@GemmaFoster watch out for the money purchase annual allowance if you are accessing a pension lump sum early as this will restrict what you and your employer can pay into your pension afterwards.

51 with 2 secondary kids, felt lucky to be able to manage to buy a house after divorce 4 years ago but my mortgage was £250,000 (London), not much lower now, and currently runs until I am 73! Am doing ok with monthly payments of just under a £1000, no extras for luxuries, but my low fixed rate runs out next year and am worried about what will come then.

My plan was / is to stay here until kids set up on their own (if they ever do) then sell up and either downsize or move out of London to either massively reduce payments / length of mortgage to avoid still working / paying in my 70s!

I am 46 and also band 7 (top) and have just taken on a 184k mortgage. I can take my pension at 60 but hope to overpay enough to clear it by then. I work 3 long days so plenty of opportunity for overtime so do a bit whilst I am fit enough to do it with the mortgage being the priority. I love this house and am willing to sacrifice other luxuries to prioritise the mortgage.

@AuntieJoyce thank you. The lump sum is from a final salary scheme relating to a previous employer so I assume this won’t impact what current employer can pay in ? Good luck @70sBaby

@GemmaFoster no it shouldn’t you are right, as long as you meet the lump sum conditions. The scheme administrator will check you qualify with you .

@AuntieJoyce thank you I have checked recently and am still in right age bracket to access it at 55, so 4 years time. Will then hope to carry on working a bit longer, but reduce my hours.

Same story here…following divorce was lucky to get a mortgage. In my case for £230,000 (properties round here are pricey & have 2 teens to house). Am 53, 49 at divorce.

now down to £180,000. But fixed rate ends next year & am worried about that.

May be able to pay some off with pension lump sum, but atm, it ends at 67. I’m paying off £150/month over the minimum, but can’t stretch to any more.

good luck op. It’s a tough journey but worth it for your own place.

46 with just over 50k and 10years left in mortgage. My goal is ideally to pay it off at the end of the 5yr period I recently fixed the rate for, and then drop my work hours to 4days a week.

I was your age when I divorced and I seriously downsized (big detached house to a two up two down terrace) and therefore no mortgage.

I have doubted myself because I have compromised on space but with costs and bills so high over the last year I think I made the right choice. I can afford my home comfortably and I have flexibility with work which it turned out I needed. I don’t feel the pressure I would have if I had got a mortgage.

I don’t want to sacrifice treats and holidays so I’m more likely to go for a smaller house. I overpaid the mortgage on the family home using on-call money from the NHS but this hasn’t been factored into the divorce settlement. We were mortgage free years ago.

I have spent years looking after elderly parents (now all RIP) and young children (including my brother’s kids a lot when they were young) so doing all of this, plus working and studying, I feel like I haven’t lived much. I don’t want to end up in a position where my bills (with a mortgage) are stopping me from living iyswim. I like to go to London so many times a year and have a decent holiday. I am considering not taking the eldest child after this year as he has a girlfriend now and will be over 20.

My job is at risk too plus I hate it. I ended up in a job not in my field 3 years ago and to say the place is a nightmare is an understatement!! I’m starting to apply for roles based in London with remote working and other NHS roles. So, need to stabilise my working life a bit too.

I am also paying off my car for another 2 years (£232 a month). One of the jobs comes with a company car so I could generate more money for a mortgage but, ideally, £500 a month would be my limit with the hope I could use my NHS pension lump sum to pay it off. I am due another pay increment in the NHS and soon stop paying solicitor fees (ridiculous costs). I think renting a while might be better as I may even end up moving away once my daughter is finished GCSE’s or if I get another job elsewhere.

So much to consider!!

Thanks all!

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