Is it too late to buy at 45? Any advice...

tori.k

abundant1972 wrote: »

A suggestion I should be saving 7K a year is somewhat unrealistic... .

I really hope not, as we been doing it we are the same age and our joint earnings are around the same as yours. We are buying this year.
It really comes down to how motivated you are, we've kept our outgoings as minimal as possible we both have to run cars for work but choose the cheapest and simplest running cars but maintain them very well.
We save by not using BBC services or sky we run Netflix through a PS at £7.50 a month no need for a TV license.
PAYG replaced contracts, utility are regularly check to make sure we are on the cheapest tariffs.
Even meals are kept simple and seasonal
We inventory our lifestyle and budgeted accordingly, no differently then when we were paying off debt just not as strict.

Depending on how quickly you want to do this there is loads of options, maybe consider shared accommodation to help reduce bills, look at cheaper options for entertainment, when we had debt we actually had a gym membership cost less than a night at the pub a month, and we made the most of the swimming pool and classes and free showers, we used it almost daily so worked out fantastic value, find free stuff that works for you.

Change the attude to it, think ahead buying a house is not our real goal, retirement is, removing our housing cost is the biggest step to that end.its a challenge not a hurdle.
We even sadly have a little ritual every time we save 1% of the house budget we split a bottle ale from a local brewery with dinner ( DH is diabetic so rarely drinks) it just helps keeping it a positive experience.
Just go to keep on trucking, good luck

abundant1972

Thanks again everyone...

MRoss haha... Nooo - I clear £1700 on 30 hours... (which I'm moving back to in April)... 24 hours is around £1400/month... and it's taken me 20 years in my chosen profession to climb the ladder and lots of hard work I promise.

Cakeguts I don't know if it's intentional but you have an unfortunate way of putting things - and a lot of what you have said comes across as being a little judgemental and a criticism of my choices. I didn't post for that... I came here for some support - not to come away feeling I've just been hammered for making bad life choices.

I think where I went wrong was having my own rented place for 11 years when I moved down south and have no desire to get my own rented place again with all the associated costs whilst I am trying to save still. About 5 years ago I decided to house share to save money. Since then I have lived in some awful places over the years - in pokey house-shares with psychotic flat mates (I kid you not) and then again met some nice folk too. It's a bit like Russian roulette. I house share now in a decent house in a nice area, and yes I'm paying a little more - but I can now walk to work, so am saving heaps on petrol, mileage, wear and tear on the car and parking fees at work etc. I still need a car though as my parents (the reason I moved here in the first place) aren't local, and have other family dotted around.

I don't go out or socialise - guilty pleasure number 1 is a £20 gym membership which I use 3-4/week to stay fit and well... Plus I feel less of a plonker than going for a walk on my own and getting odd looks from dog walkers like I'm some kind of stalker.

I have survived off a diet of tuna, rice and beans lol but eat a little better these days which costs me a little more. There is room to tighten my belt there though if I'm honest... but I'm already batch cooking and saving vouchers and all that. So guilty pleasure number 2 is cooking and exploring new food options (a new hobby).

Tori.K You have highlighted some skills like keeping an inventory - I stopped doing that a while back - I don't know why. I've got a book to record my spends and try and reign them in and stick to the budgets I set. Good advice about the 'change in attitude too' and I do like a good challenge

Some of my savings were used in moving, as I had a shortfall in my wages of over £1k the first month between jobs, then £350 - £400 for 5 months until I could secure an extra day. My parents helped me out a little but it's really slowed me down. Plus the turmoil of relocating my entire life, leaving a job/house I loved to come support my elderly ailing parents didn't do wonders for my mental health. But - bottom line - it was my choice. So you accept it and move on, and suck it up.

Thank you again. I feel I have some good pointers and a way forward.

1) Mortgage Advice
2) Review my budget and see where I can make some cutbacks and save more
3) Start keeping a spending inventory again and stick to budgets
4) Start looking around at local properties within my bracket

Thanks again.

Moomindog

I bought last year with my partner and we were 49 and 51. I think all through our forties we felt we'd missed the boat and it might not be possible. We'd always rented in London and been self employed - so getting a mortgage seemed almost out of reach. We moved to the north of England and found an excellent mortgage broker and our mortgage plus additional costs related to owning (life insurance, building insurance) still work out about a quarter less than our rent alone in London. Though there is always the concern when owning of unexpected costs. (In case other readers what to tell me we ought to have a emergency fund - don't worry we have started one!)
You sound like you are doing well - set backs like moving costs, lost work etc must be so frustrating. And I don't think things like the gym or food choices are guilty pleasures they are wise choices and living in a house share were you feel right. I appreciate some people save very hard for things in the future however there is a balance between future and being happy in the present - it sounds like you are wisely considering your mental health and what's right for you now as well as long term. I wanted to write to say that something that seemed so out of reach a few years ago now feels so normal and right and though the buying process was quite stressful (because everything was new to us) it turned out to all be more do-able than we'd anticipated. I hope it will be the same for you and best wishes with what ever you decide.

Bellisima

When we bought our house in the 80s my husband was 45 (I was younger). We took out a mortgage for 20 years, so in theory the house would be paid for by the time he retired. I suffered mental health problems too and there were times I could not work, but we struggled on paying the mortgage. I know houses were much, much cheaper then but we were on pretty low wages, but we finally paid off the mortgage, despite working through the endowment mortgage disaster!

The best thing about buying is that one day you WILL be mortgage free! It is a wonderful feeling. It also meant I could go part time as we did not have to find that huge payment every month. As already mentioned above, your house would have equity, and you could always downsize to release it when your older. My husband just turned 80 and we both feel secure and relaxed. Of course you can say I may not be alive to enjoy it;...........none of us know how long we have got left, but imagine if you had all that rent to pay forever........if you can afford it then please buy. Also some mortgage lenders are lending way beyond retirement age now, but you do need a good pension. Also you could rent a spare room out and you can earn, I think, about £4000 a year tax free, which will help with your mortgage payments. I wish you lots of luck and happiness.

leolevett1532

You are never too old. My wife and I have just bought our bungalow at 75 and 73 years old on a 25 year mortgage. Can't wait for the house to become mortgage free in 2043. Family party then.:

scorpio_biker

It's not too late. I bought last year at the age of 51, used a broker to find lenders who would lend up to age 75.

I'm paying the same mortgage amount as I was paying rent, and I don't have to deal with the crazy individual who was my landlady.

I had owned properties before as I wasn't new to it, but it is lovely to be able to do what I want in my own home.

Akahotpot

I am moving to a new house at 50 on a 24 year mortgage
Hopefully this is my last move and I will be overpaying over the next 10 years to hopefully clear the bulk of it

Alanne

My mother got her first mortgage at 50 after a bad marriage. She took a 10 year mortgage. It was in the North but she had quite a low paid job and did not have a big deposit. Whilst it was a few years ago the mortgage was paid off after the ten years (she took in lodgers for extra cash but did not have to). The house she bought for less than 10K was eventually sold for 55K. You have shown you want to save for a house so just check out what you can borrow and therefore buy. If it is a goer there is little reason not to do it. After all you can always sell it and be back to square one. If you have an NHS pension I am sure you could take a partial lump sum when you retire if there was a problem paying any mortgage off. When you have no housing cost except council tax your pension will go a lot further than paying rent plus inflation forever.

skint_chick

You should think about your health issues and how you will cover mortgage payments if you're unable to work as this is very different to government help with rent. If you'll be able to buy a home with a spare room and you'll be happy to rent this out if you're having health issues and unable to work, then that's an option. Your £2k emergency fund is a good start for covering unexpected household problems like a broken boiler so keep going with that.

If you speak to a mortgage advisor then have a look on rightmove and see what there is for your budget then you'll know how much deposit and moving expenses (solicitors, furniture etc) you need to save. Then make a plan for when your wages increase to save for as long as it takes. I don't think it matters if you don't buy for another few years because that will give you time to work out what's most important to you - location, being able to walk to work, being close to public transport/gym/friends, spare room for guests, garden etc

abundant1972

Wow. Thank you all so much. You guys should get together and write a book for the late home buyer!!!

I feel really reassures and hopeful now!!!

Strangely - after posting yesterday... I was in Natwest (not my main account) paying in some odds and ends... and the lady randomly asked me if I had a mortgage. I said I'd been thinking about it - and next thing I was in an office having an informal chat - and came away with a rough estimate of being able to get a mortgage of around 110K. The fact I'd moved jobs and had a temporary pay drop didn't matter... because I still work for the NHS it's seen as continuous employment. They are offering 95% mortgages at a rate of 3.4-4%... Whilst not ideal it's a start. I need to shop around but at least I know I'm in with a chance...

Thank you again to everyone for the advice. Life really is going to begin in my 40s!!! I genuinely can't wait.

:j xxx