1st time buyer advice

bert4567

Hi
wanted to run my high level theory on buying my first flat by people.

Im 44 and have now saved about 100K - im on a good wage in London, and im hoping to buy somewhere for around 400K - mortgage payments wont be to dis-similar to my rent. Never really thought i'd be in a posistion to ever do this. My thinking behind it ,is not to nessacarily make money (although that would be great). Im just thinking if i make 65/70 - i've paid of a mortgage and have assets. My father doesnt think this is a great idea, although i'm having a hard time trying to get out of him why! I might not also get the flat i want, but just think i need to make the money ive saved work, and bricks and mortar would make sense ?

:beer:

AdrianC

You're 44. Does your father's opinion make a big difference to your decision-making...?


Are you sure you can get a £300k mortgage?


Don't forget that it's not just "mortgage versus rent" - you will be liable for repairs and maintenance to the property, as well as paying the service charge and ground rent. And if mortgage interest rises, then so do your payments.

bert4567

yeah fair point on the age thing, it was just i thought this would be a good thing - I've taken into account - extras etc.. and think its all possible - suppose i was more wondering about people getting mortgages at my sort of age

steampowered

There are lots of people who take mortgages in their mid 40s. I'd think at age 44 you could still get a 20 year or 25 year mortgage.

It would tend to get more difficult as you get closer and closer to retirement, so if you are going to buy probably best to do it now.

You probably want to have the mortgage paid off before you retire. I'd think trying to pay rent in retirement would be tough.

hazyjo

Why does your dad think it's better to rent and never buy? Or am I misinterpreting?

MortgageMamma

Your Dads been around for a while so he will have seen at least two property bubbles and crashes, so he may just be being overly cautious. He could be concerned about our current political troubles.

Whatever the reason you are entitled to put a secure roof over your head and find the home you want. Perhaps you may need to consider that you have to be a long term investor and to stay there long term before you buy, as there is some slowing of the market due to Brexit and there could be a corrective period post 29/03.

As a first time buyer you need advice on how much you can borrow, what the costs are and the associated insurance policies you will need.

You don't say what area you wish to buy in - within the M25 or outside it? will 400k buy you a house or an apartment where you live?

There are lots of property related issues you need to be aware of as well, such as how a leasehold property can affect the chances of getting a mortgage sometimes, access rights etc.

Sanne

steampowered wrote: »

There are lots of people who take mortgages in their mid 40s. I'd think at age 44 you could still get a 20 year or 25 year mortgage.

It would tend to get more difficult as you get closer and closer to retirement, so if you are going to buy probably best to do it now.

You probably want to have the mortgage paid off before you retire. I'd think trying to pay rent in retirement would be tough.

My husband just bought jointly with me - his age determined the max mortgage term (he is 46) and we got a 28 year one; there are plenty of high street lenders going up to 75; usually subject to proof that you are paying into a private/company pension. Some will exclude physical jobs.

If it’s a good idea if you’re on your own - as strampowered said, I’d probably would want to have paid the mortgage off before retirement age.