mid-fifties...is a mortgage feasible?

Late_Developer

Hello, I am 53 an living in rented accomodation, always have. My salary is 52k per year and my wife's is 25k. This is very recent, until the last few years we have struggled to even pay the rent.

I look at motgage calculaters and see monthly payments of 2k over ten years, or interest free around 330 and I wonder if there is an affordable mortgage for someone in my position?
Any experts out there with a bit of advice please?

Senior_Paper_Monitor

How much deposit, how big a mortgage ?




.... and any forecast private/employer pension ?

amnblog

Depending on your occupation and retirement plans some lenders will lend to age 75

Each £100,000 of lending may cost 550 to 700 pm depending on your deposit size.

Late_Developer

We'd need 200k, and we have savings of around 10k. we can save around 1k per month if we try hard.
I do have a pension, but not sure about the forecast, it is a workplace one with generous employer contribution, but is only a few years old, I don't know what the forecast is but I'm not expecting much. current paying in is around 5k per year if that helps?

Late_Developer

would an interest only mortgage be feasible, then we can save capital?

I really have no idea about this sort of thing.
current rent is £600 per month

amnblog

Deposit will be the main barrier on getting a low interest rate. Interest only is a non starter.

You should consider shared ownership or help to buy equity scheme.

Check them out on line.

Late_Developer

Thanks for the tips, very interesting reading.

theoretica

You might find it interesting to complete one of these: http://www.stoozing.com/calculator/soa.php andwork out if there are ways you can reduce your outgoings to allow you to save faster for a deposit and afford a higher mortgage payment. If you read threads on the DebtFree forum here you will see lots of ideas for prioritising spending - though as you say your good salaries are recent you possibly know it already and just need to consider living as though on your old salaries.

Late_Developer

Thanks I'll have a look now.

Thrugelmir

Late_Developer wrote: »

would an interest only mortgage be feasible, then we can save capital?

If you repay the capital then you'll save interest. Interest only is really only suitable for a small proportion of borrowers. Not least that it's enforces discipline on borrowers to manage their money.

Rather than looking at properties first. Work out what an affordable outgoing would be. Use this to determine how much you can borrow. Then look at property. May not buy you your dream home but at least would give security in the years to come.

In the meantime do keep saving. A £1k a month is certainly a step in the right direction.

gazter

Late_Developer wrote: »

We'd need 200k, and we have savings of around 10k. we can save around 1k per month if we try hard.
I do have a pension, but not sure about the forecast, it is a workplace one with generous employer contribution, but is only a few years old, I don't know what the forecast is but I'm not expecting much. current paying in is around 5k per year if that helps?

No offence, but you are earning 77k per year between you. That's about £4.5k after tax per permonth, you surely shouldnt have to try that hard to save a £1k a month, I would have thought double that should be fairly achievable.