Buying a house (with bigger mortgage) in your fifties

BettyBoof

I'm wondering if anyone has any experience with this please?

DH and I are both in our early fifties with teenagers at home. We have outgrown our current house and there is no way to extend unfortunately. We probably could tolerate some of the issues but we would love to move house.

We're planning on buying a bigger house (not crazy big, just better suited to our needs) in the same area. We'll go from owing £168k on our current mortgage to owing £265k on the new mortgage. 20 year mortgage.

We had planned to retire in 10 years, this might still be possible or it might push it back by five years.

We can afford the new mortgage repayments but will have to be more careful with our budget.

I suppose I'm asking if we're crazy?!

silvercar

Teenagers are expensive and young adults also need support particularly if they move away from home to university. Budget for these costs too.

The big question is whether you have sufficient income in retirement to pay the mortgage.

BettyBoof

Good points silvercar thanks.

We have already started saving for the uni years so hopefully will have enough in the budget to help with that (expecting them to get loans too).

We could manage the mortgage in retirement (though would have to budget carefully) although our plan is to pay the mortgage off before we retire.

oz0707

I think the answer will vary for every person you ask. I wouldn't consider it myself but life happens and perspectives change. Can you even get a new 20 year mortgage term in your early fifties?

theartfullodger

Until recently I had a mortgage on a house running until after I was 80. Then recently paid it off (I'm only 78)

Talk to a couple of mortgage brokers,.. There will be lenders who will consider these deals…

BettyBoof

@oz0707 surprisingly, getting a mortgage isn't an issue, we've already been offered a couple of good deals and have a mortgage in principle.

Interesting that you did this @theartfullodger it's good to hear others' experiences.

I think we have made up our minds to do it, but I'm probably seeking reassurance as it goes against the norm. We want to move, it feels like we need to move, but somehow that we shouldn't move. Cold feet I suppose!

Tiglet2

Can I reassure you OP? We did a very similar thing to you and paid off our 20 year mortgage in 10 years. The children have now flown the nest and we don't need the extra space any more. However, we never regretted the move and have loved this property from the minute we moved in. Absolutely no regrets - though we may have to downsize at some point in the near future!

BettyBoof

Oh that is reassuring, thanks @Tiglet2! I'm really pleased to hear you have no regrets. It feels like the start of a new adventure (once we get through all the stress of selling and buying and moving!)

paulintheprocess

I've known a few people in their 50s, especially when kids are still at home and the space really matters day to day. If you can afford the repayments now and you’re clear it might mean working a bit longer, that’s a lifestyle choice rather than a mistake.

The main thing I’d think about is flexibility. Things like overpaying while incomes are good, or having the option to downsize later if plans change. As long as you’re going into it with eyes open about retirement timing and tighter budgets, it’s a pretty common trade-off rather than a reckless one.

Angelica123

Have you done the maths in terms of how it affects your retirement plan? You've mentioned that you were hoping to retire in 10 years but not clear if that's currently on track as it is and how much the move might affect that. At the end of day it's a choice about potentially working longer or living more frugally to have more space. Will the space still feel worth it if the kids move away for uni in a few years time? Only you know what matters more for your quality of life, and which trade offs you are willing to accept.

RelievedSheff

We hope to be in our new home next month. The OH is in his early 50's and we will be taking out a £305k mortgage over 16 years to fund the new place.

I don't think we are crazy. If we don't do it know then we most likely never will.

The aim is to have it paid off much quicker than the 16 year initial term

You have to weigh up what is important for you.