Am I too old to buy?

[Hertfordshire10012]

I am 38 years old, will be 39 years old. I have around 30k in savings. House prices where I live are mental. I live in Hertfordshire and it is a commutable distance to London. I will be buying by myself. I know people will say why don’t you move but all my friends and family are here. I will be looking to buy in the next few years.

You’re not too old to buy - you could easily get a 25 year mortgage, whether you can borrow enough really depends on your salary and deposit rather than your age.

Are you on a low income? If not then I don’t see what the problem is - at the very least you could afford to buy anywhere one bed flat.

You’re not seriously asking if you’re “too old” at 38 are you?

I mean, not seriously asking 🤞

Absolutely not. I'd be minimising outgoings and focusing on savings.

I'd look at becoming a lodger if you need to keep saving its a lot cheaper and if you find the right person its often "more civilised" and miles away from house share type set up.

I'd look for a nice maisonette with a garden

You’ll be 39 in 10 years time anyway whether you buy or keep renting. Go for it!

No you’re not too old to buy! Find out how much you can comfortably borrow, over a time frame you’re happy with and what property is available within your budget. Just take it step by step.

Of course you can buy! You don't have to necessarily aim to pay off the mortgage you take out on this house. Maybe in 10, 20 or 30 years time you'll decide you want to move to Northumberland where houses are much cheaper and you can buy for cash. Just don't over stretch yourself now

I'd always do the maths first. Look on right move for a property, put your deposit in the repayment calculator and look at the monthly cost. Then play with the numbers (repayment period, interest rate, size of deposit) and see what it takes to make the numbers work.

Try to be sensible though. A 30 year mortgage for example, is a commitment into retirement, is that feasible, would you want to lock yourself in? Is it worth it? How would it affect future plans.

Also, or doesn't hurt to explore a few "What if" scenarios just to see what you could do. "What if" you did up sticks and move, what could your money buy elsewhere? £30k is a 25% deposit for a Victorian terrace in my neck of the woods.

No

I thought you were going to say you're 68 not 38

Have you got a lifetime ISA? If not get onto that straight away as you can't get one once you're over 40.
I bought my place ages 38 and managed to get a 31 year mortgage. I intend to pay it off well before then though.
Get yourself a mortgage broker now and see how much you can borrow. I went with L&C because they were free and recommended by Martin Lewis's website. You will be in a much better position to plan.

No, you’re not too old. I bought two years ago age 44. I could only get a 25 year mortgage as the rule is that it needs to be paid off by age 70.

But it depends on how all of the sums work out. How much can you borrow? Is 30k deposit enough (it doesn’t sound like much to me for an expensive area)? Can you increase your deposit at all?

I had a colleague who moved to a cheaper part of the country in her 50s to be able to buy there, but obviously anyone moving to a cheaper area would need to have a job to go to. My colleague did find a job but it would have been much lower pay than she was on before, so I’m not really sure if it did work out that well.

Of course you're not too old!!

I don't know what part of Hertfordshire is home to you, but I thought I'd just have a quick look at Rightmove in Stevenage, which is probably at the cheaper end of Hertfordshire property prices generally, but it is obviously still commutable to London with a train station and presumably, not too far from family and friends when you want to socialise with them. There are 34 properties between £280k and £325k, which could be possible with your savings covering the deposit. If you save more over the next year, you would have a little more to play with. It would be largely dependent on how much money a lender is likely to offer you.

When buying a first property, you need to be realistic in your list of wants. Not many people buying for the first time can choose the best area or the nicest house.

Compromise is the key and later on, it may be possible to move again to a better location or better property.

I’m 45 and just got a 24yr mortgage, you still have time yet

We got one when I was 47 and DH was 54 - could only get it up until the oldest was 75 though, so it had to be a 21 year mortgage at that age, which means we pay a lot more per month than we could have done if we bought when we were younger.

Just to colour that in a bit more: I looked at the stats for a local Stevenage area on Area360. It looks like prices are stable (decreasing versus inflation). I can't see them suddenly shooting up so time is on her side. Look for a home now, but save as hard as possible. Rising wages, rising savings, deflating house prices are a perfect cocktail for her.

Really?
Bought my first home last year and I’m 40yo! It took me ages to be able to buy. My DC are 10 and 12 and spent most of their life in a 60sqm flat with no garden. I’m might be late for the party, but still can give my DC a proper home.
It does limit your mortgage tenor to 25y, but not really an issue.

This is a great time to be a first time buyer OP so go for it. Find out what mortgage you can get and make a low offer on a flat, maybe one that a buy to let landlord needs to let go of quickly. You may even find a tiny terraced house which would be even better, not having service charges and ground rent to deal with. Good luck.

Not at all. I am 48 and buying next summer when i’m 49. Not sure how long term i’ll be getting yet, but I will have a large lump sum on retirement so will be paid off by time I retire. I’ve lived in the south east as a single parent for years, youngest goes to uni next Sep so making the move back north, where I can finally afford to buy.