Over 50, renting - any hope??

felinefancy

Hi there!

I wonder if there are any options for myself and husband to alter our situation?

Renting because I was divorced, then remarried, and 2nd husband renting (both of us due to circumstances, not choice). Little money between us. So currently we live in greater London and pay £1100 per month for a ground floor maisonette with garden.

We have £30k in savings which I've split between a cash isa and fixed term deposit isa over 24 months. I earn 30k, my husband 20k. I am 53, he's 55. He has no chance of improving his salary. I could, however, by changing jobs (which I'm currently trying) to get another 10k. I have a work pension and two smaller pensions, he has a work pension but has only been paying into it for last 3 years (again, circumstances).

Do we consider looking to buy, somehow, any how, at our age, or do we just forget it, and when we reach retirement age, move to a cheaper area of the country and continue to rent?

Secondly, if we didn't use our savings for a deposit - would it be better if we cashed the ISAs and put the money into our pensions?

Thanks in advance for any advice - really don't know what to do.

Effy.

Murphybear

We are both retired and have been renting for a number of years (due to circumstances but it suits us). We recently moved into an over 55 complex in Dorset. It's really great, lots of things are included such as free use of Miele washers/dryers. There's a lovely communal garden and a huge communal lounge/kitchen. Our outgoings are small and we've saved quite a lot since we've been there, best thing we ever did:D

tlc678910

Hi
I put your salaries into the Nationwide "quick quote" calculator with a term of 12 years and it suggested 198,000 as an amount you might be able to borrow. Plus say 20k of your 30 savings would make it £218k. (keeping money for fees). Is that anywhere near what you would need?https://www.nationwide.co.uk/products/mortgages/our-mortgages/mortgage-calculators

Different lenders will suggest different amounts so perhaps arrange to see a broker. You need to decide what you are comfortable paying but as you are already paying £1100 rent you could think how comfortable your rent is and take it from there.

I put in no fixed expense commitments on the calculator but any credit cards/loans, car payment or mobile phone payment commitments etc will reduce your borrowing allowed. Don't take on any new commitments while you are thinking of purchasing. If your pension payments reduce your borrowing (when you speak to a broker) you could put them on hold for a few months payslips. They are discretionary spending after all and not a commitment.

If you can afford shared ownership you are at least likely to get something back if you move in 10 years rather than nothing with renting.

Good luck.

Edit: If you decide to purchase now you won't want to change your job while it all goes through because the bank could pull out of your mortgage. If you change jobs first you will need at least a few months in the new one normally and/or to pass probationary period before getting a mortgage.

Cakeguts

Get saving as much as you can now.



https://www.rightmove.co.uk/property-for-sale/property-64686532.html Here is an example of a terraced house in a Northern town that is within 1/2 mile of a station. It is just an example so that you can do some sums I am not suggesting that you buy it only for money calculation purposes.



Remember national minimum wage is national it isn't less in the North where housing is cheaper.