Buy or still rent aged over 40?

Northerner1234

I am in my early 40s and renting yet another property as kept moving house for various reasons.


My increasing concern is about being able to afford to still rent when I retire in say 25 to 30 years time. I am paying into my own pension but it has been either low or contributions with gap periods. With my estimate I obtained for my state pension plus my own pension estimate, I wont be well off in retirement.


So am I best looking to buy a property in the hope that my mortgage will be paid off by the time I retire to avoid the situation of being homeless by not affording to pay rent?


My other problem is that I have got mental health issues - bad anxiety and depression. I am still on medication but have been on and off for about 15 years. I am dreading any doctors report as it will surely mention everything like my medication doses and my intentions of ending my life, although I have never attempted this. At the moment my anxiety is a lot better than in the past and my depression is reasonable. Would I never be allowed a mortgage now due to my mental health?


Strangely enough, I have had a mortgage in the past but this was when my problems were only slight. I sold my flat in 2006 and can now afford at least a 50% deposit on a property.


Has anyone else been or is in this situation? Any help or advice would be gratefully received. Many thanks.

Bart1

Been a few years since I've had a mortgage but I don't think they ask for any medical reports

p00hsticks

Northerner1234 wrote: »

So am I best looking to buy a property in the hope that my mortgage will be paid off by the time I retire to avoid the situation of being homeless by not affording to pay rent?

Obviously no one can say what the benefits situation is likely to be by the time you retire, but you perhaps should bear in mind that if you are on a low income/pension then if you rent, under the current rules you'd be eligible for housing benefit and the landlord would take care of any maintenance, whereas you'd struggle to get help maintaining a property you own - so renting may not necessarily be that bad a situation.

PasturesNew

I'd go for the buying option ... but keep the place small/affordable and not "dream house"; rein in your wants for your needs. Owning gives you a great sense of freedom that can lessen the anxiety that some rentals bring on .... you can actually relax and feel part of the local area - and feel able to make longer-term plans ... or just sit in your pants and eat chips from the bag without worrying there'll be a LL at the door, or a S21 in the post, or some other nonsense.

densol_2

Ive never been asked for a medical report for a mortgage - no need to worry there. Why did you sell up before ?

Pixie5740

Your medical records aren't required for getting a mortgage. Not even as part of the more rigorous affordability checks brought in this April.

Your anxiety and depression might make it more difficult (read expensive) to get mortgage life assurance, life insurance and income protection insurance.

Has your anxiety and depression caused you to miss long periods of work before? If your illnesses cause you to be out of work in the future then as a home owner you wouldn't be entitled to housing benefit but would still have to keep paying your mortgage so you'd need to consider the likelihood of being out of work.

Once retired, if you're a home owner then hopefully your mortgage would be paid off by then. Could you afford to keep up with maintenance and repairs on the property with your pensions? Maybe if you bought a place with a spare bedroom you could let out to a lodger that would help.

Certainly buying would give you more security then renting unless you can get social housing. Constantly having to every year or so as a private tenant is the real downside to renting which is probably why we are a nation obsessed with home ownership.

Running_Horse

Normally I'd say buy. But I have known pensioners in your position, and they got to the front of the social housing queue and had everything paid for them. In this country it does not always pay to do the right thing and support yourself. Only you can weigh up the pros and cons in your particular situation.

raimundas

People usually at the age of 25 to 30 years prefer to take loan,but I am much younger around 21 so am I eligible for a mortgage loan ,I want to procure a house in london

Davesnave

PasturesNew wrote: »

or just sit in your pants and eat chips from the bag without worrying there'll be a LL at the door, or a S21 in the post, or some other nonsense.

Sadly, this facility isn't always available, even to home owners, if one's OH regards such behaviour as deviant, but thanks for the stirring mental image.

MARTYM8`

Running_Horse wrote: »

Normally I'd say buy. But I have known pensioners in your position, and they got to the front of the social housing queue and had everything paid for them. In this country it does not always pay to do the right thing and support yourself. Only you can weigh up the pros and cons in your particular situation.

Its difficult - because with the demographic changes/growing elderly population its unlikely pensioners in 2035 will be supported as generously as now. Cos there won't be enough cash.

Obviously owning is preferable - but it can be quite costly as well. And in many areas you can rent a nice place for less than the cost of paying a mortgage on a dump given relative house price vs rent rises.

Maybe wait until after the election - as the dynamics might change. But don't assume you can rely on the state anymore in retirement - if you don't own your home you may well need a good pension.

Mrs_Soup

Personally I would want to look into buying if you have that much savings that you could put down 50% and have at least 20 more years at work ahead of you to pay off a mortgage but like someone else said keep it a reasonable size for your needs so you are not overstretched.