renting at 50yrs

Road_Hog

Is that £20k each or per household and I take it as you've concentrated on clearing debts (correctly), you don't have a deposit.


I realise the want to own something, especially if it gives you an income in retirement, but like others have alluded to, but not specifically said, I'm feeling very edgy about this and you need to think long and hard about this and have a specific plan.


What is the estate like that you live on, and I take it you can renew the lease?

BitterAndTwisted

For many people this mythical "property ladder" has turned out to be a very poisonous snake!

There are a number of very compelling reasons why those on a low income in secure housing should stay precisely where they are.

onewish

Thanks for the advice. The safe option seem to be to stay where we are n try to get the property under the right to buy scheme if possible.

princeofpounds

Thanks for the advice. The safe option seem to be to stay where we are n try to get the property under the right to buy scheme if possible.

It typically makes little sense for anyone to buy a BTL unless they already own their own home, for tax efficiency reasons if nothing else.

Plus sometimes RTB council housing can come with a reasonable discount.

Furthermore, I would urge you to consider 2 things in particular when looking at buying

1) Do NOT compare mortgage costs at the current interest rates to rent, at least directly. Interest rates can and do move up as well as down. At the very least consider if owning looks similarly attractive at the rate of a 10 year fixed mortgage, as this represents the market's best estimates of the future direction of interest rates, in simple terms. That doesn't mean you have to take a 10 year fix, up to you, just do the comparison.

2) Think hard about maintenance costs. Most homeowners will tell you it is far more expensive than you might think, and they are right. For people on a low income it is particularly hard as a single broken boiler or roof problem can nail your budget.

eagerftb

You should look at this as well : -

http://www.theguardian.com/money/2013/dec/11/buy-house-or-rent

moneyistooshorttomention

princeofpounds wrote: »

It typically makes little sense for anyone to buy a BTL unless they already own their own home, for tax efficiency reasons if nothing else.

Plus sometimes RTB council housing can come with a reasonable discount.

Furthermore, I would urge you to consider 2 things in particular when looking at buying

1) Do NOT compare mortgage costs at the current interest rates to rent, at least directly. Interest rates can and do move up as well as down. At the very least consider if owning looks similarly attractive at the rate of a 10 year fixed mortgage, as this represents the market's best estimates of the future direction of interest rates, in simple terms. That doesn't mean you have to take a 10 year fix, up to you, just do the comparison.

2) Think hard about maintenance costs. Most homeowners will tell you it is far more expensive than you might think, and they are right. For people on a low income it is particularly hard as a single broken boiler or roof problem can nail your budget.

:T

Very good advice here.

Current interest rates are NOT typical and typical interest rates WILL happen again.

Also, do you really want to be in a scenario I recently read about of, for instance, "My boiler has just HAD to be replaced and it cost £3,000. Christmas is now cancelled". As a home-owner you HAVE to keep a few thousand £s to one side just in case the house "decides" to cost you a large sum of money right NOW and there is no room for "argument". It has to be spent and that's the end of it...

tiggerkid

onewish wrote: »

Hi,
Me and my wife are in our 50s and we rent a property from the council. We need some advice on how we could get onto the property ladder. As far as I understand we are too old to get a mortgage now which makes it very difficult for us. Any advice would be much appreciated.

It's not impossible to get a mortgage when you are in your 50s. It all depends on how stable your income is. Most banks are willing to provide mortgages up until one reaches the age of 65. So, say, you are 50, you should still be able to get a mortgage with a 15 year repayment term assuming you have a stable source of income. Our bank also told us they do give mortgages with term extending beyond people reaching 65 years of age but this depends on adequate pension arrangements, i.e. ability to demonstrate that one's pension is sufficient to cover mortgage repayments.

Miss_Marple_2

Yes - lots of banks will give you a mortgage until you are 70 ( NatWest for example).