45 taking on a Mortgage

illbeurhuckleberry

Hi.

Im 45 and going to take the plunge and buy.  Single income with a mortgage of
£ 1870000. 5 yr mortgage. 
I have 6 mts mortgage aside in case of job loss but will take out insurance too.
I work in the health care system so it’s unlikely but I like plan just in case.
I will live in this house long so nice investment.

I’m told I’m insane taking on a Mortgage of£187000 at my age. I disagree, it’s a risk but I would be paying more renting. I’m left with £450 after bills / mortgage/ travel food insurance etc. 
Anyone done something similar?

foxy-stoat

45, mortgage of £350,000 and bought £425,000 property - not my first but longer than 5 years....your monthly repayments are going to be over £3,200 !!!! crikey.

eidand

I am in the process of buying now, same kind of age. My mortgage will be higher than that though. Still, I am not worried, it all depends on your situation, income, other debt, etc. If the numbers add up, why not ?

lincroft1710

I took a mortgage out at 48, but only £70,000 (poss less, can't remember) and spread over 20 yrs. 

GixerKate

illbeurhuckleberry said:

Hi.

Im 45 and going to take the plunge and buy.  Single income with a mortgage of
£ 1870000. 5 yr mortgage. 
I have 6 mts mortgage aside in case of job loss but will take out insurance too.
I work in the health care system so it’s unlikely but I like plan just in case.
I will live in this house long so nice investment.

I’m told I’m insane taking on a Mortgage of£187000 at my age. I disagree, it’s a risk but I would be paying more renting. I’m left with £450 after bills / mortgage/ travel food insurance etc. 
Anyone done something similar?

You are going to pay off the mortgage of 187k in 5 years? wow.

Soot2006

At 45, you've still got 20 years of mortgagability and even more with some lenders...  It's hardly the end of the line. Go for it and get the house you want

MovingForwards

44, £66,300 mortgage over 23 years, 15% deposit, with a 5 year fix.

Completed and moved a few months ago. Could have had a bigger mortgage, the properties were no better than mine and didn't have the views, private garden etc I have.

I've made overpayments from the start and aim to clear the mortgage in 10 years.

Why not buy a home? You need somewhere to live now and in retirement.

RelievedSheff

My OH is 44 and last year we took on a £189k mortgage. Admittedly there are two of us on the mortgage and two salaries to take into account though.

So no it isn't daft. You need somewhere to live.

SallyDucati

Moved house at 48, and although I did have 40% equity to put down from sale of my flat I still have a £100k mortgage till I'm 68 (although I plan to pay it down earlier!).  Sounds like you have it all worked out and are comfortable with it so go for it and don't worry what 'other people' say.

Ozzuk

My partner and I are buying now, I'm 45 and have owned many homes (including current) but my partner has always rented due to travelling.  I only had 17 years mortgage left and a lot of equity but we fell in love with a long term home so are buying an expensive (for Wales) property and having to change to 25 year term.  Plan is to prioritise reducing that, and the LTV isn't that high but it doesn't worry me.  Everybody treats risk differently though.

kangoora

Sorry, but insane idea. You're paying massive amounts into reducing a 2.5% (?) debt when you could be getting 40% tax relief on pension payments (also probably capital appreciation on both the pension and the house at the same time). Which is better, getting 2.5% or getting 40% return on income? I would take out a 20 year mortgage and push the maximum into a DC pension (possibly overpay something on the mortgage if it makes you feel better). You could then use the tax free lump sum from your pension to pay off what's left of your mortgage when you decide to retire. You'd need to speak to an IFA to work out how much you could put into a DC pension as I assume with working for the NHS you are paying into their pension and with a DB pension it's not straightforward working out how much you can pay into a DC pension as well. Finally, stock markets have taken a nosedive over the last 6 months so now is probably the best time to invest in funds (while they are cheap) - of course, stock markets could go even lower though