Has anyone taken on a big mortgage past middle age?

Lily-Rose_3

And if so why?

I am just genuinely curious. I know three different couples - friends who live 10 mins walk from us, an old neighbour, and an old work colleague, who all took on big mortgages past the age of 50.

The couple who live near us are 56 and 54, and in 2011, she had her mother leave her house to her in her will. (a mid terraced house in the north.) She sold it on auction for £60K. Her and her husband had a 2 bed semi bought in 1997 for £40K and now worth £90K. They had 're-mortgaged' a couple of times over the years to do repairs, update the property, buy a new car etc, so by 2012, they still had £50K owing in 2011.

But instead of using the £60K from the mother's house to pay off all the debt on the 2 bed semi, they sold their semi, had about £35K equity, put it with the £60K to make £95K and then bought a £235K house! So they now have a £140K mortgage! At 54/56 years old!

And the other 2 couples I know have similar stories. Making 40 to 60K on their house, and putting it towards a much bigger, more expensive house, by taking out £100-£150K mortgages at the age of 50 and older.

And all three couples have no children living at home, and they all moved to 4-bed and 5-bed houses.

WTH?

Is it a case of buying something much bigger and more expensive in the hope that it will increase in value more and they make a lot on it?

Or is it a case of people measuring success with the size and price of their home?

One of the women in these couples (my old colleague who is 53,) insisted on showing me around her new £225K house (with her new £160K mortgage,) and prattled on about how her sister in law and friend at work are sooooooooooooo jealous of her big house.

Me and DH used to own our own house up to about 5 years ago: a big 3/4-bed. Now we rent a lovely little 2 bed bungalow from a housing association, and she kept saying 'don't you miss all the room now you only have a little bungalow?' And she kept trying desperately to make ME say I was envious/jealous. I wasn't. Been there done that, bought the t-shirt. We used to have a huge 3/4-bed and it was a nightmare to clean and heat, AND it cost a fortune to repair and maintain.

What's more, she just had a quarterly gas bill of £400! Ours was £86.50. AND she just had to fork out £3K for a new boiler, just a few weeks after moving in.

I couldn't think of anything worse than taking on a massive 6-figure mortgage over the age of 50. The wages are not brilliant around here, they are probably maxed to the hilt, and my old neighbour told me that 'their' mortgage is costing over a £1K a month! Lord knows to what age.

And my friend who lives nearby has had her husband nagging her to death to look for more hours at work. Makes me wonder if it's worth it?

As I said, has anyone else taken on big mortgages at middle age or older? And why?

ognum

Lily-Rose wrote: »

And if so why?

I am just genuinely curious. I know three different couples - friends who live 10 mins walk from us, an old neighbour, and an old work colleague, who all took on big mortgages past the age of 50.

The couple who live near us are 56 and 54, and in 2011, she had her mother leave her house to her in her will. (a mid terraced house in the north.) She sold it on auction for £60K. Her and her husband had a 2 bed semi bought in 1997 for £40K and now worth £90K. They had 're-mortgaged' a couple of times over the years to do repairs, update the property, buy a new car etc, so by 2012, they still had £50K owing in 2011.

But instead of using the £60K from the mother's house to pay off all the debt on the 2 bed semi, they sold their semi, had about £35K equity, put it with the £60K to make £95K and then bought a £235K house! So they now have a £140K mortgage! At 54/56 years old!

And the other 2 couples I know have similar stories. Making 40 to 60K on their house, and putting it towards a much bigger, more expensive house, by taking out £100-£150K mortgages at the age of 50 and older.

And all three couples have no children living at home, and they all moved to 4-bed and 5-bed houses.

WTH?

Is it a case of buying something much bigger and more expensive in the hope that it will increase in value more and they make a lot on it?

Or is it a case of people measuring success with the size and price of their home?

One of the women in these couples (my old colleague who is 53,) insisted on showing me around her new £225K house (with her new £160K mortgage,) and prattled on about how her sister in law and friend at work are sooooooooooooo jealous of her big house.

Me and DH used to own our own house up to about 5 years ago: a big 3/4-bed. Now we rent a lovely little 2 bed bungalow from a housing association, and she kept saying 'don't you miss all the room now you only have a little bungalow?' And she kept trying desperately to make ME say I was envious/jealous. I wasn't. Been there done that, bought the t-shirt. We used to have a huge 3/4-bed and it was a nightmare to clean and heat, AND it cost a fortune to repair and maintain.

What's more, she just had a quarterly gas bill of £400! Ours was £86.50. AND she just had to fork out £3K for a new boiler, just a few weeks after moving in.

I couldn't think of anything worse than taking on a massive 6-figure mortgage over the age of 50. The wages are not brilliant around here, they are probably maxed to the hilt, and my old neighbour told me that 'their' mortgage is costing over a £1K a month! Lord knows to what age.

And my friend who lives nearby has had her husband nagging her to death to look for more hours at work. Makes me wonder if it's worth it?

As I said, has anyone else taken on big mortgages at middle age or older? And why?

many people would consider the mortgages you are talking about as small, it depends on income.

This post does have a feel of the chattering classes! Does it really matter what others do as long as you are happy with what you do?

I could not imagine anything worse than going into middle age in a housing association bungalow it feels like you are heading quickly to the graveyard but you are happy so fine, enjoy it.

Live and let live!

Lily-Rose_3

ognum wrote: »

many people would consider the mortgages you are talking about as small, it depends on income.

This post does have a feel of the chattering classes! Does it really matter what others do as long as you are happy with what you do?

I could not imagine anything worse than going into middle age in a housing association bungalow it feels like you are heading quickly to the graveyard but you are happy so fine, enjoy it.

Live and let live!

I knew someone would come on and say something like this! And I knew someone would have a go at me too! I am just curious because I don't understand it, and wondered if anyone else has done it.

I am also more than happy in my very cheaply rented 2 bed detached bungalow in the village I am in. With all the repairs and maintenance done for just over £70 a week.

Also, the wages are poor around here. If you had read the last part of my post, some of them are struggling.

If you anything constructive to add instead of making snarky comments, then feel free.

penguingirl

I wouldn't have thought it was worth it. I wonder if they have decent pensions that will give them a lump sum? I know people who rely on that lump sum to pay off their mortgages (and plan for this in advance- and do things like big houses in their 50s).

It's not what I'd choose, but each to their own. I'm aware that my partner and I have made a conscious decision to have a small mortgage and will hopefully be mortgage-free by the time we're 30 (by which point we might consider moving somewhere bigger/ change location so would get another mortgage). We like not feeling trapped by a mortgage and feel like we have choice about whether we move/ take time out to travel/ have a family/ start a business etc. but I know other people are less bothered by having that flexibility.

pivotalgubbins

Lily-Rose wrote: »

I knew someone would come on and say something like this! And I knew someone would have a go at me too! I am just curious because I don't understand it, and wondered if anyone else has done it.

I am also more than happy in my very cheaply rented 2 bed detached bungalow in the village I am in. With all the repairs and maintenance done for just over £70 a week.

Also, the wages are poor around here. If you had read the last part of my post, some of them are struggling.

If you anything constructive to add instead of making snarky comments, then feel free.

I'm sorry but the only person that has come across as snarky in this thread is yourself - I read ognum's reply as observational. They gave you there views - i.e. they can see why someone may wish to push themselves with a mortgage and may not want to downsize to a HA property so early in life.

Your original post is in such detail that you do come across as (a) jealous; (b) hopeful that some fellow posters on here will justify your own choices) or (c) (and most likely) somewhere between the two.

People are expected to work till 68 (or maybe more) these days so that is 15 years of paying down a mortgage. Even if they don't pay it all down, it may allow them to downsize to a smaller property they own, or free up some funds to enjoy their retirement.

As ognum says - live and let live.

donfanatico

Lily-Rose wrote: »

I knew someone would come on and say something like this! And I knew someone would have a go at me too! I am just curious because I don't understand it, and wondered if anyone else has done it.

I am also more than happy in my very cheaply rented 2 bed detached bungalow in the village I am in. With all the repairs and maintenance done for just over £70 a week.

Also, the wages are poor around here. If you had read the last part of my post, some of them are struggling.

If you anything constructive to add instead of making snarky comments, then feel free.

my wife and i will be hopefully first time buyers in 1 to 2 years (when we have saved more deposit money) and I will then be in my mid 40s and she a few years younger

to answer your question because we want to buy and finally own our place

Lily-Rose_3

pivotalgubbins wrote: »

I'm sorry but the only person that has come across as snarky in this thread is yourself - I read ognum's reply as observational. They gave you there views - i.e. they can see why someone may wish to push themselves with a mortgage and may not want to downsize to a HA property so early in life.

Your original post is in such detail that you do come across as (a) jealous; (b) hopeful that some fellow posters on here will justify your own choices) or (c) (and most likely) somewhere between the two.

People are expected to work till 68 (or maybe more) these days so that is 15 years of paying down a mortgage. Even if they don't pay it all down, it may allow them to downsize to a smaller property they own, or free up some funds to enjoy their retirement.

As ognum says - live and let live.

Well you're wrong. I am just curious why anyone would do it. I am not trying to make people say what I want to hear. Quit reaching! And I did find Ognum's post Snarky. Why can't people just respond without having a go? Good grief!

Not being funny, but I'm not responding to any more posts where people are obviously just being snarky/sarcastic.

As I said, if anyone has anything constructive to say - please feel free.

Lily-Rose_3

donfanatico wrote: »

my wife and i will be hopefully first time buyers in 1 to 2 years (when we have saved more deposit money) and I will then be in my mid 40s and she a few years younger

to answer your question because we want to buy and finally own our place

Well that isn't too bad; early to mid 40s. But mid 50s?!! And taking on a mortgage of £125 to £150K with the average full-time wage being £15K to £22K. That just seems so high.

And as I said, a couple of them are struggling financially as hubby wants the missus to go do more hours at work.

pivotalgubbins

Lily-Rose wrote: »

Well you're wrong. I am just curious why anyone would do it. And I found Ognum's post Snarky. Why can't people just respond without having a go? Good grief!

Not being funny, but I'm not responding to any more posts where people are obviously just being snarky/sarcastic.

As I said, if anyone has anything constructive to say - please feel free.

As I said in my first reply - neither ognum (and indeed, myself) were actually being snarky or sarcastic.

You are judging your neighbours on their own choices and ognum was simply pointing out that you could equally judged by your own. Different strokes for different folks!

Also, as I noted, the changes to working ages, coupled with potential rises in property prices, etc. may explain why they've been willing to take the plunge. Plus, sometimes what can be seen as showing off is simply pride in their new home and/or possibly insecurities as to what the future may hold.

Lily-Rose_3

penguingirl wrote: »

I wouldn't have thought it was worth it. I wonder if they have decent pensions that will give them a lump sum? I know people who rely on that lump sum to pay off their mortgages (and plan for this in advance- and do things like big houses in their 50s).

It's not what I'd choose, but each to their own. I'm aware that my partner and I have made a conscious decision to have a small mortgage and will hopefully be mortgage-free by the time we're 30 (by which point we might consider moving somewhere bigger/ change location so would get another mortgage). We like not feeling trapped by a mortgage and feel like we have choice about whether we move/ take time out to travel/ have a family/ start a business etc. but I know other people are less bothered by having that flexibility.

Same here. I wouldn't have thought it was worth it either. I mean, they could have used the profit from her mother's house to pay off the whole mortgage on the 2 bed semi, and been mortgage free. NOW they have a £100-150K mortgage for the sake of having 2 extra bedrooms!

Like I said, I am wondering if it's a case of thinking if they have a bigger, more expensive house, that it makes them more successful? I would say not, as the mortgages are sky high! And as I said, one of the women seems desperate to get me to say I am jealous, like her SIL supposedly is. :rotfl:

anselld

Well I think the main reason is that for the last five years mortgages have been stupidly cheap. In fact it has been quite possible to borrow money cheaper than you can re-invest it.

So the temptation has been there to borrow and there has been little or no incentive to repay.

The risks will come when interest rates eventually rise and some people may find themselves over stretched.

I don't see that age has anything to do with it though.