45 taking on a Mortgage

CLJP72

15 year mortgage for a similar amount, we're 48 and 55 !

moneysavinghero

Better to take out a mortgage now, pay it off before you retire, and have somewhere to live when you retire. If you rent you might just find yourself homeless when you your income stops unless you are lucky enough to have a large pension

Owning a property = inflation works in your favour, mortgage payments effectively become cheaper every year
Renting = inflation works against you, rents keep rising in line with any pay rises you may get

Moneyravingexpert

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?

I read the first figure as 1.8mil and thought GULP. I don’t think so- if your numbers add up you need a home that’s yours go for it. Although this is coming from someone who doesn’t worry too much about their job.... I think I’m stable for now but I never really think “what if” 

you’ve got money aside for 6 months worst case scenario ... I’d go for it. Worrying is like carrying an umbrella in the sun waiting for it to rain! Pointless. 

homersimpson246

I think the OP is looking at a 187K mortgage fixed for 5 years but overall a longer term.

deejaybee

Took out a 138K mortgage when i was 53 ( 2013 ) on a 17 year term, which would take me up to age 70, but have been overpaying with a view to clear it by age 65 at lastest.

Not the first mortgage i have ever had,  but had to start again after divorce.

amandacat

I’m in my 40s and have about 120k left on my mortgage but will be moving soon and upsizing so likely 150k mortgage then. Still 20 years plus before retirement! 

illbeurhuckleberry

Thanks everyone and sorry for the confusion. Mortgage of &187000 @ the tender age of 45. Though I was milking into mortgages of 23 yrs. my mortgage got back to me with a 20 yr mortgage and now I know why 😶🤣

fiision2020

i'm 47 and hoping to secure a mortgage of £243,000 over 22 years. I will be looking to make over-payments to reduce the term. 

zagubov

Not daft at all.
We took a £220k mortgage 15 years when I was 49. Interest-only but we overpaid to make it a repayment.
In London, though and renting here long-term's rarely a good move .

illbeurhuckleberry

Thanks everyone. Wearing my glasses this morning so no grammatical errors!
I agree it makes more sense to buy than rent and when I come to retire what do I have.
Some of my friends think I’m crazy. I’m not materialistic so with some careful planning I can do this.
Good luck to everyone who is starting this adventure a little later in life.