Too old to be a first-time buyer?

richpoortyke

Hi I wondered if anyone has experience of knowledge re this please. I'm looking to buy my first ever property next year so have no idea about mortgages other than reading Martin's guides on here. I will have likely just turned 50 when I do so. Firstly  am i going to be too old? Is there any advice of which mortgages I should be looking at, percentage deposits I require or any info that might be helpful to know where to start plesse. Any help would be greatly appreciated. Thanks

K_S

@richpoortyke You could start off with the MSE first time buyer guide.

You are not too old to get a mortgage or be an FTB. Your age may limit the maximum term of the mortgage and thus have an impact on your maximum borrowing but otherwise the calculations are much the same.

Very roughly speaking you can expect to borrow a max of 4.5 times your income. In the current market you should ideally aim for a 15% deposit if looking for a standard purchase though 10% may also be doable depending on your circumstances.

If you only have a 5% deposit, there may be options such as help2buy available to you.

Grumpy_chap

In which way do you think you are too old?
You may find you are restricted to mortgages that can be cleared before retiring.  May depend on the extent to which your future pension provision is considered.
It will be very difficult if renting and on pension.

richpoortyke

Thanks for the replies. Well its likely i will retire at 67/68. Im 48 now.  I've recently got on top of my finances so have zero debt and a strong credit report. I've started paying into the auto pension scheme for the last year and all being well will stay in my job til retirement so will pay into it until I finish work.  Ive saved a little towards a deposit. About 5 percent so far on properties in looking at but I'm aiming to ramp this up over the next 18 months. My partner will be moving in with me at my rented property then we will look for somwhere together. She is a mature student finishing her degree but no income at present but does has savings which we can consider using towards a deposit. I'm certainly looking to put down as large a deposit as possible. Ideally taking out a mortgage that will clear as I hit retirement. 

Kelda1

@richpoortyke if it helps we have just applied for our first mortgage at 47 & 48. My partner was in the forces for most of our lives and I have recently retrained and done a degree.   We are now looking to settle down. Our mortgage term will be 20 year instead of 25+. We are also first time buyers. Get the process started with a good mortgage broker. Our was recommended from another broker on here. He is amazing  and is taking the lead with everything and is keeping us regularly updated. Still have my own anxiety we will be turned down though !   

MovingForwards

I got my home at 44, with a 23 year term and I'm making overpayments each month to clear it well before state retirement age. Same as others, I picked my broker from the forum as I could see how he interacted with people.

Save as much as you can, find a good broker in advance of when looking and when you have (or nearly have) your deposit and other fees start looking for a home.

There's people older than you who are FTB.

richpoortyke

Thanks everyone. I think this year is gonna be a year of saving as much as we can and reading up how mortgages work as this is a whole new ball game then find a broker and take the plunge next year. I reckon I've still a thousand questions to ask