Just Found My Dream Home

[CyclingAddict]

Would it be a good decision to take on a £100,000 mortgage at the age of 61? Have only just paid off our Mortgage on our home valued at around £580,000 but have just seen a nice place for £730,000. Would need to borrow £100,000 to include Stamp Duty/Agent’s fees but do have substantial savings and could put £50,000 towards the purchase.

earnings around £55,000 pa

perhaps I’m very stupid

Do it OP, do it do it do it!!!!

Caveat: I am not risk averse, so am probably the last person to advise! ...but I took on a similar financial burden at an older age than you (to be honest I was surprised it all went through so smoothly; lenders don't seem so twitchy about retirement age nowadays) and have never been so happy. Not a day goes by that I don't rejoice over how much my life has improved by living here.

In my case it was downsizing, but from another country so I needed the extra £££ to make up for a huge gap in property prices (especially post COVID).

You're not desperate to stop working, and if some catastrophic scenario happened you could always rent it out while planning how to remedy the situation. But 5 years is not that long, I'm sure you'll manage.

What's really important is your feeling about the house. That gut feeling where you just KNOW it's going to be a place that suits you, where you could live happily for ever. I've only had that feeling twice in my life, once years ago (and it was a wonderful home for a couple of decades) and... now. When you find a place like that, it's so precious that the burden of another mortgage is just numbers on a piece of paper.

@KievLoverTwo that bungalow sounds horrendous! But I think you are suffering from a badly designed and poorly built home (and possibly the wrong OH?!). The tiny new-build bungalow I'm in is so perfect that I could kiss it every morning.

Honestly? I think you’re too old and towards the end of your working life for that. Many people find ailments start kicking in in their 60s and early 70. Paying £1800 seems crazy when you’re as vulnerable as you are (easier to get sicker, harder to find jobs if made redundant).

Nah, it's the third terrible house we've lived in over four years and the pressure it's put on us has been horrific. There's nothing wrong with him (she types through gritted fingers, lol) and everything wrong with sodding countryside rentals. The one before this was at least ten times worse. We've been hanging on by a mere thread to both our sanity and relationship as a result.

But - there's light at the end of the tunnel. Soooooooon we shall leave these doomed houses forever.

Ohhhh, good luck with your move! I am sure you'll feel just as ecstatic as me when you finally find yourself living somewhere nice. Sometimes the rough patches can help us to really appreciate when life is good.

And I'm glad you're not lying awake at night, kept awake by birds on the roof and taps drippiing and your OH snoring, and fantasising about smothering him with a pillow! 😂

I'm in a not dissimilar position OP. As long as you have guaranteed income in the way of pensions going forwards I'd say ye as. If you are relying on salary then no. Companies have a way of getting rid of older workers when you least expect it!

Go for it! Live is for living.

Half a million gets you a 2 bedroom flat around here, with a little balcony if you’re lucky. Don’t presume to know the OP’s current living situation.

You must be insane. I’m 57 and would not consider this - all I want to do is (a) pay off my mortgage and (b) fill up my pension contribs. You need to get a financial advisor who can explain to you why saving for your pension is the most importantly thing ever st this age. Seriously you’re behaving like a 25 yr old. Grow up!

Thank you for your contributions, great to read other people’s perspectives

I’ve worked out, with a bit of juggling with finances, that we would have less to borrow; might be looking at less than £1,000 in repayments. The Council Tax looks similar to what we pay now and the property is probably the same size as we have now so similar in heating costs. The village location and the big gardens is what makes it more expensive.

Jobs are not necessarily secure …who knows?

I'm 60, the only way I would consider doing something like this would be if my parents were still alive and I was certain that an inheritance from them would cover the outstanding mortgage, and leave me with some extra. Even if they did need to go into care, so your parents would need to have a high value house, be in reasonably good health for 80+ with good pensions and savings...

The house sounds lovely, but if you move there you will be setting restrictions on your life. You'll have large gardens to tend - when perhaps days out and holidays might be more freeing and fun. If you tire of work you won't be able to just pack it in.

Like you, I'm 60ish. The next decade to 15 years is so precious for us. I would think really seriously about limiting your options with a mortgage when you could be freeing yourself up for exciting new doors opening and yet undreamed of adventures.

I've downsized and the freedom, less responsibility and spare cash has been an exhilarating rush of fresh air and new opportunity to me. Like you I loved work - right up to the point where I was pig sick of it and then I wanted out.

Now, every morning I count my blessings that I'm not lumbered with a mortgage or work any more. Instead I'm pretty much punching the air and am off on my bike to the sea feeling like the 25 year old a PP accused us of being because we're not sensible 60 year olds in tweed squirreling tenners into an account. 😀

Job security is great if you're freelance, is there any chance of trying that out as a sideline to see how it goes?

I told you I'm not risk averse!!!!!!!!!!! (but this worked really well for me, I earn loads more than I ever did as an employee)

I can't speak for the finances as I was delighted to pay off my mortgage at sixty.

The house and garden sound lovely. It depends what you like doing, obviously. If you want to travel a lot the garden would be a burden, but if you enjoy being at home it would suit you very well.

I travelled a lot when I was younger and don't have the inclination now. My home and home area give me great pleasure and are very important to me in retirement, so I understand the desire to move to the dream house.

My friends who live in bungalows love them, though one couple had to do a lot of work including insulation.

As for the future, if the garden became too much, could you afford to get help with it? If you weren't able to drive for any reason, would it be difficult to get to the doctor, shops etc?

£1800 a month mortgage on an income of £55k pa sounds like a lot to me. What's your combined take home pay per month? Surely £1800 is nearly half that?

Hmmm... How long would the term be? In 20 years you'll be 80 and still paying off a mortgage? No thanks!

I'm risk adverse too, but I don't think this sounds like a bad idea. It's not like you're buying a listed building with steep stairs or a massive house which needs a full renovation, it sounds like the property would suit you perfectly and would see you in to old age (possibly barring the large garden).

Really depends where you live. Where I live (not London) half a million doesn’t even buy you a small 3-bed.

5 years

I always imagined one day living in a bungalow but after reading @KievLoverTwo posts I have had a change of heart 😂

Yes, I would. You’re only 61, plenty of work life left and hopefully many years to enjoy your dream house.

I might be tempted for a bungalow and a location near to amenities if it was going to be more future-proof.

I'd want to run the figures carefully for scenarios if one or other had to leave work and/or retire earlier than anticipated.

We lived in a bungalow for 10 years (in my 30s too 😅) and loved it and do not recognise the problems @KievLoverTwo had (I do not disbelieve you, in any way, @KievLoverTwo , just that was not my experience.

We had redone the roof when we moved in and put in masses of insulation, and all around the facade too. We used less energy than in our current house and never had any mould problems. It had very highly insulating windows and a reversible heat pump so that obviously helps. I really liked it! We only moved for DH's work.

I think a lot of our problems stem from the owners thinking they know exactly how to refurb a house because they've been flippers in the past, but at the same time they spend SO little time in their own house due to their professions that they just don't have a clue about the major irritants and nagging or infuriating problems (and I also think there's an arrogance of thinking they just know everything).

The UFH pump is a perfect example. Who TF puts something that pings every 20 seconds throughout the entirety of winter on a wall against a wall, on the other side of which is the only place in the 2nd biggest bedroom you could feasibly put a headboard?

OH says: our problem is that we keep ending up in houses that have been designed by people who don't actually LIVE in fk'in houses.

Bit of an exaggeration, but it's a fair point.

A lot of what I wrote, I think, can be avoided by knowledge and common sense and contractors who know what they're doing. I do think the energy efficiency, dark, and dampness (and possibly even the roof noise re: birds etc) are widespread issues in bungalows and I think in the 1960s they slung them up as cheap as chips and those generally are NOT good houses to retrofit to be far better homes.

How long does the mortgage run for?
When do you hope to retire?
How are your retirement figures looking - have you worked out a rough annual ‘outgoings’ figure for retirement and compared it to expected incomings?
I would prioritise making sure my retirement income looked right first, if that works and you still have the spare cash, go for it. If you’re short of living the retirement life you want, I would direct the sore cash to my pension for the next few years, & get the tax relief on it too.

We live frugally and don’t have expensive holidays, drive a basic car, hardly ever eat out or go to the theatre/cinema and buy clothes from charity shops. We’re Mr and Mrs Boring! Our home has always been our castle, so to speak.

Pensions are looking ok.

Two children still living at home so it will be annoying for them to travel to and from a village which is about 5 miles from the town we live in now

Still weighing it up but grateful for all your contributions ☺️ it might sell whilst we’re contemplating 😀😀