Would You Still Go for 3 X Salary at Age 46?

westv

Considering that at 46 it's unlikely your wage would increase in subsequent years as much as it might have done if you were, say, 26. Reason I ask is that, hopefully, early next year I will get myself back on the property ladder (sale in 2008 due to separation) and I've been umming and arring as to whether I should go for the 3x or less considering any mortgage I get will probably also only have 18 years to run until I was 65.

Surbybird

I have just bought a new house (first time buying a house in just my name) and the Halifax made me an offer of 4x my salary over 20 years (I am 44) which I was very surprised about, as I thought I'd struggle to get 3x.

I ended up going just over 3x though as I had a reasonable deposit and bought in a cheapish area so I am not too stretched (I would probably have taken the whole 4x if I hadn't been wearing my 'sensible' hat that day though!)

I guess your decision will depend on what you want to buy though and if you want to go for interest only or repayment, and if you want to/can overpay (which is what I am doing).

cattie

Yes, I did it after my partner walked out on me. It was a worrying time taking on a mortgage alone after so long with a partner to share finances, but I took the plunge & last year, 12yrs later, managed to pay off my mortgage.
:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j

Surbybird

Well done, Cattie!

I am hoping that I'll be joining you in the 'Paid Off Mortgage' club in a few years.

:j

K

cattie

Surbybird wrote: »

Well done, Cattie!

I am hoping that I'll be joining you in the 'Paid Off Mortgage' club in a few years.:jK

I'll be keeping a seat warm for you & have a glass of champer's at the ready.

westv

Ok thanks for the replies. I am in two minds about 3 x. On the one hand, when buying a house, it can be a false economy if you don't go for as much as you can afford at the time of the purchase on the other hand interest rates are low and can only go up.

PasturesNew

I think it depends on your job, expectations, location, property, health.

If you are a bin man with a dodgy back and you're 4 stone overweight, probably not a good idea.

If you're a seemingly healthy civil servant, with no history of sickness and nothing in particular in your family, working in a solid department, buying a nice house in an area you like... then it'll probably be OK.

Have you had your mid-life crisis yet? If you're past that you won't wake up in 2 years' time and want to kayak naked along the Orinoco. If you've not had it yet then think about if you're likely to want to.

keith969

westv wrote: »

Considering that at 46 it's unlikely your wage would increase in subsequent years as much as it might have done if you were, say, 26. Reason I ask is that, hopefully, early next year I will get myself back on the property ladder (sale in 2008 due to separation) and I've been umming and arring as to whether I should go for the 3x or less considering any mortgage I get will probably also only have 18 years to run until I was 65.

Hell yes. I've just taken out a mortgage of 2.3x income for 12 years to buy a place after seperation. Would have been less but need space for my son for the next couple of years.

westv

Surbybird wrote: »

and if you want to go for interest only or repayment, and if you want to/can overpay (which is what I am doing).

Interest only? Oh no,no,no,no! :eek:

westv

keith969 wrote: »

Hell yes. I've just taken out a mortgage of 2.3x income for 12 years to buy a place after seperation. Would have been less but need space for my son for the next couple of years.

So, if you don't need the extra space, you would suggest going "lower, lower" (said in a Brucie "Play Your Cards Right" style )

theartfullodger

I'm 61 and thinking about moving: I'd be quite happy to get a new mortgage, but I know some lenders are nervous of old-crocks (my description of me..)

Good luck - go for it!!

Lodger