Is a mortgage possible ?

_Chris__2

Hi all, am looking to get a mortgage with my wife, but not sure on figures, so hope you lot can give a little guidance please. I am 58 and my wife is 42. We're currently renting (has been £800pm for the last 3 years, which we've always paid on time). The property price would be in the region of £200k, my salary is about £22k and my wifes about 17k. Would we be able to get a mortgage for that size property and how much deposit would be required please?

Any help appreciated.

Chris

Thrugelmir

Your age is potentially the biggest challenge you face.

When do you plan / expect to retire?

How large a pension provision have you made ?

On a combined salary of £39k, you would require a sizable deposit even if you were looking for a mortgage on a 25 year term.

Do you have a large amount of savings? £40k, 50k plus......

afly

Generally speaking, combine your incomes and times it by 4 so 39k * 4 will give you £154k meaning a £46k deposit

Very rough numbers though. Lenders will vary in what they want. A Broker will be able to help you much more with specifics

_Chris__2

I am very physically fit, with triathlons etc, and want to retire at 80. I have about 20k as a deposit.

Gizmo247

The age at which you plan to retire is of little interest to the lender unless you are planning to retire early.

Most lenders will offer joint mortgages where the term ends on the 65th birthday of the oldest partner and that meet their affordability criteria where the mortgage is repaid by the term end. This does not leave you much room for manoeuvre.

Some lenders will go to 70 or 75.

Your best bet is to use a good mortgage broker and sooner rather than later. Given you age difference, it may turn out that your wife may be able to get a mortgage on her own rather than as a couple as the term will be longer and so repayments less.

Annisele

_Chris_ wrote: »

I have about 20k as a deposit.

In that case I think you're really going to struggle. Assuming you have money on top of that £20k to pay for fees, stamp duty and so on, you're wanting to borrow £180k - which is more than 4.5x joint salary.

If you were to take a repayment mortgage over 6 years to finish before your state retirement age, repayments at 5% would be about £2,900 a month - which is obviously unaffordable. Over 16 years at 5% payments would be more like £1,360, but that still looks very high next to your income. And of course rates can rise above 5%.

Your wife can almost certainly get a mortgage on her own over a longer term - but with an income of £17k, she's not going to be able to borrow the amount you need.

Certainly go and see a broker, but I don't think this will be easy for them to place. Are there any cheaper houses in your area?

Thrugelmir

_Chris_ wrote: »

I am very physically fit, with triathlons etc,

With age comes an ever increasing risk. Even for the healthiest.