Too late?

seagreen

I wasn't sure whether to post this query here or in "House Buying".

I am in my mid 40s and have lived with my partner for the last 17 years or so as a non-owner, and it now seems quite likely the relationship will come to an end and I'll have to move out. During that time of course the property prices have rocketed, and I'm having to consider how and where I'm going to live for the rest of my life.

My age would seem to suggest that I'd have great difficulty getting (effectively) a first time buyers mortgage. Even if I could it would have to be over a relatively short period of time - I haven't done any sums yet but I could end up struggling to make ends meet for the rest of my working life so that I could pay the mortgage. Also, realistically I'd have to be prepared for my income to drop considerably at some point in my 50s.

None of this sounds good for buying a house.

The only alternative I seem to have is to rent for the rest of my working life.

When my peers are approaching retirement and living in their fully paid-for houses I'll still have to find the money to pay for the rent. Rightly or wrongly I'm very worried about the future.

Are there any other options I haven't thought of? Are things as pessamistic as they seem?

homer_j_3

You are still effectively 20 years from normal retirement age.

What is you annual income/employment status?
Why do you say your income will drop in your 50's?
What are property prices where you live?

Ian_W

And further to homer's questions do you have any savings or will you be getting anything from the split that might help with a deposit?

First time buyer mortgages are a bit of a misnomer really, the advantages of being a FTB are more to do with the buying process than getting preferential finance in most cases.

seagreen

You are still effectively 20 years from normal retirement age.

Approx 18.

What is you annual income/employment status?

Presently 32k, full time employed.

Why do you say your income will drop in your 50's?

Having been through various cycles of up/downturn and escaped redundancy programmes before, it seems unlikely that I'll still be in my current job and earning at that level all the way to my retirement. It's also very difficult for people in their 50s to find employment in my field, so if I'm made redundant I may well have to take a much lower paid job. Also, change of career which many people consider in their late 40s/50s would probably bring a drop in pay. If I had been (say) 40 then I would feel a lot more confident about starting a mortgage.

I guess one could say buy now with an expectation that you WILL continue in your current job until retirement, but if you ARE made redundant then you can sell the house at that time if you need to.

What are property prices where you live?

I'm in the midlands, and I must admit I haven't really looked at this closely.

do you have any savings or will you be getting anything from the split that might help with a deposit?

I've got about 30k in savings, but realistically I won't get anything from the split (no furniture or household appliances).

I have had my fingers badly burnt in the housing market in the late 80s with negative equity and having to sell with a massive loss, so I'm worried about making a wrong decision with a new mortgage which will run right up to my retirement day. Also the split is emotionally very unsettling and I'm concerned about making such an important decision right now.

BACKFRMTHEEDGE

Gosh doesn't this poor women have any rights? Can a lawyer help her? :rolleyes: What about posting also on marriage, relationships and family board?

homer_j_3

I would suggest that you have a look at the properties. try https://www.rightmove.co.uk for an idea of prices in the areas you would like to live in.

Fully understand that you have been burnt previously but if your main worry is that you dont want to be renting in retirement then you just need to find somewhere that is affordable and right for you for the forseeable future.

Your affordability may stretch to over 4 times your salary but that does not mean that you should do this. Have a look at property prices and see where the property prices sit against your salary.

You should protect yourself by taking accident sickness and unemployment cover. So if you do get made redundant then you can know that your mortgage payments are covered for 12 months. This will allow you to try and gain alternative employment or sell.

There are no guarantees in life and we cannot always predict what the future holds but if you plan sufficiently now and protect yourself by not overborrowing, using too much of your savings, you are doing everything you can.