AIBU to think you should have a mortgage by age 45?

whatsthesenseinsharing · 2023-10-06T19:58:18+00:00

Slightly panicked that I don't have one, and unlikely too until I get back to work (when baby goes to nursery). On my own but hopefully I have a decent deposit and can get something. Although should I have a mortgage earlier than this age? Child's father left and I have other children I need to set myself up for. Graduated earlier this year and plan was to go back to work but having another child put this on hold. Would I even qualify for a mortgage at age 45? Is that even a thing?

Ifailed · 06/10/2023 21:01

if you've got the money, yes.

Zippedydoodahday · 06/10/2023 21:03

You can get a mortgage at 45. It will just likely limit the term you can get. Typically however long it is to state pension age.

OneRingToRuleThemAll · 06/10/2023 21:08

You should be good for a 25 year mortgage to a retirement age of 70

Original poster

whatsthesenseinsharing · 07/10/2023 06:23

Thanks guys

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Dibblydoodahdah · 07/10/2023 07:23

Many lenders allow mortgages up to 75 now so you could get a 30 year mortgage with some.

Persipan · 07/10/2023 08:33

I don't think there's any 'should' about it; everyone's circumstances are different. If home ownership is a priority for you, then do bear in mind that lenders will have an upper age limit that will start to impact the term of mortgage you could take out - which may in turn limit what you can afford to buy. It's also worth knowing that most lenders will take childcare costs into account when calculating affordability, so factor this into your planning, too.

Original poster

whatsthesenseinsharing · 07/10/2023 08:43

Ahhhh I see! Didn't know about childcare costs. Financially I wasn't in a great place for a while due to relationship separation etc. my goal is to be better come age 45 and when I return to work, with a decent size deposit.

Hoping a financial advisor can help guide me to what would be a decent position to be in when I'm ready to obtain a mortgage. Currently in council housing, I'd be giving this up. The mortgage is for the investment for the children or my retirement.

Not entirely happy about a mortgage loan at that age but I guess it had to be five for the end goal

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EnglishGirlApproximately · 07/10/2023 08:47

Just to reassure you OP I got a mortgage last year at 48! I had a mortgage in my twenties then moved overseas, came back years later to find every house had tripled in price so had to save more for a deposit. Was viewing house end of 2019 into 2020 then along came covid, furlough etc so finally got over the line last year. Yes the payments are a little painful as the term is shorter, but at least it'll be mine when I retire.

FrontEnd · 07/10/2023 08:53

I think it would be worth your while consulting a broker with your specific numbers (deposit, anticipated salary, childcare costs etc ) versus typical price of the house you're considering in the area you're looking at. Only then will you know if it's viable (at all) or desirable (remaining disposable income, retirement age necessary to finance it) to leave a secure council tenancy. There are other options for investing if that's your primary goal.

Turmerictolly · 07/10/2023 14:39

Think very hard about this as you have a secure, low cost council tenancy. Is it worth saddling yourself with a huge debt in older age? Anything g could happen to you health wise etc and critical illness cover is limited in scope and expensive at that age. You'd also be liable for all repairs, upgrades etc.

I'd look at other investments if I were you.

mjf981 · 08/10/2023 06:21

Echoing others…I wouldn’t give up secure council housing for a mortgage, if you’re happy in the house/area. I’d be investing in savings accounts/index funds etc. mortgage repayments and interest rates have shot through the roof and will likely be a lot more than your rent.

CliffsofMohair · 08/10/2023 14:51

Also echoing above - your home would be used to pay for care in older age if you needed care home. No guarantee investment would ever reach children.

Whysolon · 08/10/2023 14:52

Persipan · 07/10/2023 08:33

I don't think there's any 'should' about it; everyone's circumstances are different. If home ownership is a priority for you, then do bear in mind that lenders will have an upper age limit that will start to impact the term of mortgage you could take out - which may in turn limit what you can afford to buy. It's also worth knowing that most lenders will take childcare costs into account when calculating affordability, so factor this into your planning, too.

Exactly this.

SleepingStandingUp · 08/10/2023 15:03

Yes op you're clearly a failure at life
Anyone who doesn't have one by 30 is clearly leading a worthless life and have attained nothing of merit.

All those people who will never be anywhere close to getting a mortgage? Losers and wasters the lot of them.

Is that the kind of reply you're expecting?

Should have done according to whom?

Where is this list of things you should do by set ages and what's the consequence of you fail?

You're working hard to keep a roof over yours and your kids head. That's what you should do, because they deserve a safe home. Even if you don't always manage it, as long as you're trying you're doing your best.

AutumnNanny · 08/10/2023 15:04

Do you have the right to live there for life?

what's the house/garden like?

My Aunty & Uncle have a beautiful (council, bungalow, right for life. It has a huge garden which they have made beautiful. They had a vial room which the council allowed them to knock through & extend the kitchen. They paid to have a new kitchen put in & various decorating. It's modern & beautiful.
id do that if you are happy with the bones of the house , garden & area.

i own mine, but if I could swap I would.

Callisto1 · 08/10/2023 15:12

If you have a secure, low cost tenancy and are happy where you are, would it not make much more sense to invest in a pension or other savings.

Most of us buy because the alternative is expensive, insecure housing where the landlord can chuck out you and your family with little notice.

If you want to help your kids financially it might also make more sense to help out while they're building their family, rather than give them a chunk of money upon your death when they're likely to be in their 50s or 60s and already set up.

bowlingalleyblues · 08/10/2023 15:20

Do look at whether you’re better off investing in a pension. That can also be passed on as an asset if not used. You might be better off renting if it’s a decent home.

SlightlygrumpyBettyswaitress · 08/10/2023 15:39

Honestly, I'd just pay the difference between rent and mortgage into a pension plan. You get instant tax relief. Unless you hate living where you do.

BMW6 · 08/10/2023 17:35

I got my ist mortgage at 50 when I took early retirement.

Term was for 15 years but managed to pay off in 9.

RedHelenB · 08/10/2023 17:37

whatsthesenseinsharing · 07/10/2023 08:43

Ahhhh I see! Didn't know about childcare costs. Financially I wasn't in a great place for a while due to relationship separation etc. my goal is to be better come age 45 and when I return to work, with a decent size deposit.

Hoping a financial advisor can help guide me to what would be a decent position to be in when I'm ready to obtain a mortgage. Currently in council housing, I'd be giving this up. The mortgage is for the investment for the children or my retirement.

Not entirely happy about a mortgage loan at that age but I guess it had to be five for the end goal

If you have council housing and it's in an OK area I'd stick with that and try to save money to help your kids on the property ladder perhaps?

ManchesterLu · 08/10/2023 17:56

It's not a case of 'should' as such, it will just make your life a heck of a lot easier if you a) don't have to pay rent/mortgage when you're retired (mortgage eventually ends whereas rent is forever) and b) you don't have the stress of wondering if your landlord might want to sell at some point. Once it's yours, it's yours.

It's always nice to be able to leave something to your children, too, or know that any residential care you might need in the future can be paid for if needs be.

It just brings security, but not everyone owns a home by any means, and they get by obviously.

Original poster

whatsthesenseinsharing · 08/10/2023 20:25

Thanks for covering a lot of information I didn't know. The attitude of 'have to have a mortgage' comes from people I know who have that god awful perception... if you don't have a mortgage you are a waster, what are you working towards in your life?

The council home we are in has a bedroom for each child and it's in a fairly decent area, local to everything for the children which they love and immediate neighbours are fantastic. Ones further removed not so much but keep themselves to themselves.

I think I'd be best to consult a financial advisor? Or someone who could advise me right. I would really like my children to benefit from anything I have, I thought having an asset to offer would do the job but like mentioned this can be used for care if need be. There is an attitude that people have depending on the area you come from, that stings sometimes too. It's positive to hear people have managed a mortgage at my age or older, gives hope if need be.

Pension? Minefield. I've only ever known work pensions.

Savings? Have some but to build on that and try make it work for us? That would be great.

A bit deflated by the whole aspect but once I know more and in which direction I can go, I'll feel better

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teaandtoastwithmarmite · 08/10/2023 21:46

I've been worrying about this as I'm 42 and DH 39 and we're still renting. Got some debt to pay off then can save for deposit. We earn almost 100k between us but god knows where it goes. Once the debt is pay down we should have a good income. I've been feeling like we're the only ones!

Original poster

whatsthesenseinsharing · 09/10/2023 07:47

teaandtoastwithmarmite · 08/10/2023 21:46

I've been worrying about this as I'm 42 and DH 39 and we're still renting. Got some debt to pay off then can save for deposit. We earn almost 100k between us but god knows where it goes. Once the debt is pay down we should have a good income. I've been feeling like we're the only ones!

Yep... feel the same! I did have a mortgage once, years again. Marriage fell through and so did the house. Felt proud of that but again I don't think it was the right thing for me

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