Has anyone taken on a big mortgage past middle age?

Lily-Rose_3

anselld wrote: »

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.

You could have a point.

I don't think people think it through at ALL when they max themselves out. As soon as the interest rates rise, they'll be stuffed. I remember the 1990s, and many people losing their home!

Re, the 'age' thing. My point was, why take on a huge barely unaffordable mortgage at mid 50s, when they could be mortgage free now? And is it because they measure success by the house size/price (as I said, my old colleague seemed to think I would be jealous of her 'big house?') Or is it a matter of them thinking the more expensive the house, the more they will make from it?

hazyjo

My ex (nearly 50 at that time, I was early 40s) and I bought a four bed house (was our first house together). We wanted a nice big house and the plan was to sell when we retired and buy outright and have money in the bank. It wasn't to impress the Joneses, it was something we wanted.

It's all relative though, surely. We had a mortgage of well over £1500 a month, but then we were bringing in over £4k a month and had no kids. It would've been paid off when he reached 65, so shorter term. Don't really get why anyone would find that shocking.

My mortgage is around £120k (house now worth 3x that). I see that mortgage as fairly medium-sized, certainly not huge. I'm 44. Got 3 beds (one's v small), but we're still kinda bursting at the seams! Not much in the way of storage. Some people have a lot of stuff, others live minimistically.

One of my friends has a house worth four times mine, another rents a one bed flat with their son. My mum's now in a four bed on her own. Can't see her selling/moving any time soon.

Each to their own.

Jx

dominoman

Lily-Rose wrote: »

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:

Everyone makes their own choice. What is wrong with taking on a mortgage so you can have some extra space?

I don't think you should judge others so harshly. First of all you list out your neighbours, their costs and financial situations, and then you post snide comments about those on this forum that give you sensible responses and opinions.

If your friends and neighbours want to buy, then what business is it of yours. Perhaps they have their own views on your choices.

Live and let live. Try baking a cake.

SailorSam

It frightens the life out of me when i see the amounts prople borrow now. When i bought my first terrace house for £6.5k i think i borrowed about £5k. Then i moved to a semi a couple of years later costing £17.5k with a mortgage of about £13k and that seemed a lot.
Of course we're talking about 35yrs ago. I feel i was so lucky.

Lily-Rose_3

hazyjo wrote: »

My ex (nearly 50 at that time, I was early 40s) and I bought a four bed house (was our first house together). We wanted a nice big house and the plan was to sell when we retired and buy outright and have money in the bank. It wasn't to impress the Joneses, it was something we wanted.

It's all relative though, surely. We had a mortgage of well over £1500 a month, but then we were bringing in over £4k a month and had no kids. It would've been paid off when he reached 65, so shorter term. Don't really get why anyone would find that shocking.

My mortgage is around £120k (house now worth 3x that). I see that mortgage as fairly medium-sized, certainly not huge. I'm 44. Got 3 beds (one's v small), but we're still kinda bursting at the seams! Not much in the way of storage. Some people have a lot of stuff, others live minimistically.

One of my friends has a house worth four times mine, another rents a one bed flat with their son. My mum's now in a four bed on her own. Can't see her selling/moving any time soon.

Each to their own.

Jx

But the average wage around her is about £900 monthly per person. And as I said, a couple of them appear to be struggling. And I wondered if it was worth it. If it is for you, then good for you. I would never do it though. Like you said. Each to their own.

Lily-Rose_3

SailorSam wrote: »

It frightens the life out of me when i see the amounts prople borrow now. When i bought my first terrace house for £6.5k i think i borrowed about £5k. Then i moved to a semi a couple of years later costing £17.5k with a mortgage of about £13k and that seemed a lot.
Of course we're talking about 35yrs ago. I feel i was so lucky.

I know right. I mean, £100K to £150K mortgage in your mid 50s?! Surely whatever you salary, that is a LOT?!

dominoman

Lily-Rose wrote: »

But the average wage around her is about £900 monthly per person. And as I said, a couple of them appear to be struggling. And I wondered if it was worth it.

Even if you think your neighbours might struggle to pay their bills, the bank has decided they can. And I suspect the bank knows more about their finances than you do.

pmlindyloo

anselld wrote: »

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.

I actually think that age does have something to do with it.

Supposing one or other of the couple fall seriously ill? Unless they have critical illness cover then their income would drop considerably and although they may have equity in the property and then can downsize it is not something you want to face when you may have other things to worry about.

I agree that low mortgage rates are a factor. Also, sad to say, some people seem to be very materialistic and are totally unrealistic about the 'what ifs' in life.

I'm not saying that you have to live your life based on 'what ifs' but it seems to me that some people are more concerned about living in a big house and being seen as 'having it all' then being satisfied with a home that suits their needs and allows them the freedom to live a life without too many financial worries.

Annie1960

Lily-Rose wrote: »

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:

You would need to ask the people concerned why they did it. Does it really matter?

People want different things for different reasons. I see nothing strange in what you describe.

Annie1960

Lily-Rose wrote: »

I know right. I mean, £100K to £150K mortgage in your mid 50s?! Surely whatever you salary, that is a LOT?!

Depends what area you live in. Around here you wouldn't get anything for that. 1 bed flats start at around £150k.