To Buy Now Or Wait

cjohnson355

Hi,

We have an endowment mortage. The payments are forever increasing and we are ever hopeful that at the end of the term the mortgage will be fully covered. I would ideally love to move house now but my hubby thinks we should wait until the mortage is "hopefully" paid off in five years time. My worry is that we will be in our early fifties by then. Borrowing is difficult now but would age go against us too? We would need to borrow a little to move on. Has anyone else faced this dilemma?

Thanks to anyone that replies.

KJ

diable

depends on how much you owe and what your property is worth

hcb42

why are the payments forever increasing? Interest rates are at historically low rates

If you pay the mortgage off in five years, your age wont go against you as I am assuming you would borrow far less...

If you move mid 50s then you could in theory take a mortgage to retirement age. Personally I wouldnt go beyond 60/65 but we are all different

GuidoT

Undoubtedly as you get older, lenders see you as more of a risk, as you have less of your working life to service any mortgage debt.

If you are able to pay off your house in 5 years, then you should have a good chunk of equity in it already and lenders will view this favourably.

In your position I would see how the numbers stack up, then go to a broker and see if the banks will lend. The decision maybe made for you in that they may not, but at least you have tried, or it may of course be the case that they will lend and then you have a decision to make in terms of if you move.

Maybe post up some numbers here and you will get a better response.

cjohnson355

hcb42 wrote: »

why are the payments forever increasing? Interest rates are at historically low rates

If you pay the mortgage off in five years, your age wont go against you as I am assuming you would borrow far less...

If you move mid 50s then you could in theory take a mortgage to retirement age. Personally I wouldnt go beyond 60/65 but we are all different

Thank you for responding. This is my hubbies theory too that in five years we'll need to borrow less to move. We are always being asked to pay more as the endowments will not reach their target.

cjohnson355

GuidoT wrote: »

Undoubtedly as you get older, lenders see you as more of a risk, as you have less of your working life to service any mortgage debt.

If you are able to pay off your house in 5 years, then you should have a good chunk of equity in it already and lenders will view this favourably.

In your position I would see how the numbers stack up, then go to a broker and see if the banks will lend. The decision maybe made for you in that they may not, but at least you have tried, or it may of course be the case that they will lend and then you have a decision to make in terms of if you move.

Maybe post up some numbers here and you will get a better response.

Hi, Thank you for responding. I suppose we would be looking at £150,000 to borrow to get what we wanted.

hcb42

cjohnson355 wrote: »

Thank you for responding. This is my hubbies theory too that in five years we'll need to borrow less to move. We are always being asked to pay more as the endowments will not reach their target.

Who asks you this? I have never been asked that, granted i have not had an endowment for many years now, switching to repayment and eventually cashing them in. Don't throw good money after bad! You could use the same increase to pay off the mortgage itself and derisk that way - but that is by no means financial advice on my part...