54 year old mortgage queries

jacquicarol

I am a 54 year old trying to purchase my home through the right to buy scheme. I earn an average wage and no pension. I have a mortgage broker who has sent me his two suggestions of good deals. Both are with Virginmoney. He had to reduce the pay back time to 15 years with myself paying a small amount toward to initial costs. I was looking to lend 133.000 as I wanted to spend some of my small savings on general house improvements, but reduced it to 126.000 as suggested by my broker. The suggested mortgage options my broker has sent me are still a rather high price for me to afford, coming out at 775 a month on a variable mortgage and 855 on a fixed. I am left wondering if these are the best deals available to me and beginning to feel maybe home buying is just not going to be possible for me. Feeling so frustrated if anyone has any further ideas I would appreciate it.

Thrugelmir

You are limited by the time you've left to repay the debt. That's the issue.

Senior_Paper_Monitor

Virgin should do this over 16 years + (months to 55th birthday - 2 to complete), which will help a little with monthly payments.

Just paying £126,000 capital (no interest) over 15 years would be £700 per month !! At 2% its £810 per month (and that's not likely to be maintained for 15 year !!). Interestingly an extra year on the term will reduce the to £700 capital component to £656.

There is one other possible (nowhere near enough details here to be sure) home for it over a longer period (which will ease the monthly payments) but there is nothing wrong with the initial rate on this (or any other high street lender's rate) as they are all close enough to make little difference - the main cost is capital.

This is presumably a 2 year rate - my biggest fear here would be it will become unaffordable 1) after that period on higher rates 2) after state retirement, if the £775-855 figure is frightening the OP now.

jacquicarol

Hi I am having trouble trying to find out how to email the forum with the question below. Not sure if it will work this way. You left a message informing me that you had removed my signature. Is my signature my thread/post? Was it removed because I named a service user? Sorry unclear to me despite reading the rules.

Pixie5740

You don't have a signature. It was Senior Paper Monitor's signature that was removed.

TrickyDicky101

Have you asked yourself what benefit you see in buying your property in exchange for giving up a secure tenancy? It may seem obvious, but you need to think carefully if it will cause you financial hardship to do so. Is it because you wish to 'pass something on' to the next generation? If so, have you asked them what they think about this?

jacquicarol

It is not about passing onto the next generation, they are all okay. It was more for my own future security with current government policies continuously changing in regard to social housing my tenancy does not feel that secure. I think if I don't buy I may be forced to move out to a property with no options. I have lived here for over 20 years with a full house of family and friends visiting often and Grandchildren staying over. I may be panicking needlessly but it won't do any harm to explore options.

_CC_

I'd be more concerned about having no pension if you're worried about future security

csgohan4

jacquicarol wrote: »

It is not about passing onto the next generation, they are all okay. It was more for my own future security with current government policies continuously changing in regard to social housing my tenancy does not feel that secure. I think if I don't buy I may be forced to move out to a property with no options. I have lived here for over 20 years with a full house of family and friends visiting often and Grandchildren staying over. I may be panicking needlessly but it won't do any harm to explore options.

A mortgage isn't secure either. You could lose your job, interest rates go higher than you can afford.

Not to mention repair costs for your house, a new boiler, windows e.t.c, of which the HA should pay for if your in housing

Owning a house has it's own problems.

As above poster mentioned, if you haven't got a pension arranged and plan to have a state pension, all the more reason for you not committ to buying a house as your state pension may not cover the mortgage or the lender will not lend to you at retirement.

Owning a house is a privledge and not a right.