Buying a home at 40

[wooders1978]

Am I being fucking stupid?

I am in the very fortunate position to have a relatively decent amount of dosh coming my way shortly due to an inheritance of my late grandmothers house finally being sold (apparently I own 12% of it, a fact that my mum had conveniently left out when she's been renting it out for the past 20 odd years but whatevs mum least you told me now as you can't flog it without my say so, but love ya really)

So I'll have enough money for a relatively good deposit on a mortgage, thing is, I'm 40 now and I'll be paying this fucker off until I am 65 - add to that, looking at house prices I'll be shelling out way more in terms of the mortgage per month than I pay for rent currently to live in a place that is about the same standard- which strikes me as a touch daft, that said, by the time I retire I'll own my own house
However, I don't have kids and unless someone really special convinces me otherwise, I don't reckon I am gonna either.... really undecided about what to do - albeit with a very nice problem to have

Whatcha recks?

[ToneLa]

Your mortgage is your mortgage
Rent is The Man's mortgage

Don't think age alone (40 ain't bad) is a reason to not at least try to get on the property ladder...

[wooders1978]

Your mortgage is your mortgage
Rent is The Man's mortgage

So one vote for "go for it"...

[wooders1978]

Edited so that my first sentence makes sense

[DistressedArea]

Better to wait until you are 39.

[wooders1978]

Better to wait until you are 39.

But that's a whole year away

[DistressedArea]

Ok, 38 then.

[holyzombiejesus]

We bought our house when I was 44 on a 25 year mortgage and because we paid slightly over each month, we got it down to less than 20 years in the 4 years since we took it out. So a definite yes.

[Talulah, really!]

So I'll have enough money for a relatively good deposit on a mortgage, thing is, I'm 40 now and I'll be paying this fucker off until I am 65 - add to that, looking at house prices I'll be shelling out way more in terms of the mortgage per month than I pay for rent currently to live in a place that is about the same standard- which strikes me as a touch daft, that said, by the time I retire I'll own my own house

The last part is key, what are your plans for a place to live when you are 65 if you don't own a property?

2nd are you sure you would be paying more for a mortgage than in rent? I'm paying about 3 x less for my flat than I would in rent for ones in the same street.

[Shoulders?-Stomach!]

Why is being 40 significant in this context?

Just asking as I'll be about 50 by the time I can get there.

My advice is try and avoid newer leasehold properties, shared equity, and if you do go leasehold take a close look at the lease term.

[wooders1978]

We bought our house when I was 44 on a 25 year mortgage and because we paid slightly over each month, we got it down to less than 20 years in the 4 years since we took it out. So a definite yes.

Thanks man, did you have any problems getting a mortgage at that age? Part of me is thinking bank it until later on...

[wooders1978]

Why is being 40 significant in this context?

Just asking as I'll be about 50 by the time I can get there.

My advice is try and avoid newer leasehold properties, shared equity, and if you do go leasehold take a close look at the lease term.

Only because it maybe better to invest the money elsewhere seeing as I'll be paying it off until I retire and I don't currently have an heir - just fishing for thoughts really

[mothman]

Yes, property is a racket (and theft, etc.). But as Tone is effectively saying, you have something to show at the end of it, which you won't if you just pay rent. The awful thing is that many people will never bein this situation; I'm not sure what can be done about that, apart from the entire collapse of the capitalist system (but I'd not bet on that and carry on renting, frankly). I consider myself bloody lucky to have got on ver property ladder at 35 - if you'd told me a year before, I'd never have believed it. I'm even more fortunate to have now paid off my mortgage a lot sooner than expected; we're planning to move in a few years and that may require some mortgaging on the new place, but that;'s not a dealbreaker for me (not intending another 25 year term though).

[wooders1978]

The last part is key, what are your plans for a place to live when you are 65 if you don't own a property?

2nd are you sure you would be paying more for a mortgage than in rent? I'm paying about 3 x less for my flat than I would in rent for ones in the same street.

For me to get a place of my own round these parts it appears as though I'll be paying a good chunk more per month to get something of a similar quality as the place I currently rent - get your point about what happens when I retire - should probably sort something out really - though I do wonder if an investment is a higher risk strategy for a better payoff

[holyzombiejesus]

Thanks man, did you have any problems getting a mortgage at that age?

None whatsoever.

[Janie Jones]

So I'll have enough money for a relatively good deposit on a mortgage, thing is, I'm 40 now and I'll be paying this fucker off until I am 65

Not necessarily. You don't have to have a 25 year mortgage. Shorter ones are available. Also you can overpay while you're earning good dosh, as HZJ and mothman did. This isn't always a good strategy to make the best use of your income but in some economic climates it's sensible. What you need is a good independent mortgage advisor. Ask around, get a recommendation. Of course they get commisssion but in my experience they get you the best deal and save you way more than they cost.

[wooders1978]

The thing is a shorter mortgage or over paying doesn't seem to be an option unless I want to live in a shithole - which naturally I don't

[mothman]

Slight correction - not Janey's fault, I tend to gloss over it because, well, it's a bit embarrassing, and makes me feel guilty for having been lucky just for an accident of birth: I didn't overpay, I also had an inheritance and we made the choice to use it to pay off the remainder of the mortgage rather than invest it, because we just didn't see any schemes that offered remotely near an interest rate which would make it worthwhile. Which IMO goes some way to answering Wooders' question...

Only because it maybe better to invest the money elsewhere seeing as I'll be paying it off until I retire and I don't currently have an heir - just fishing for thoughts really

[gib]

Only because it maybe better to invest the money elsewhere seeing as I'll be paying it off until I retire and I don't currently have an heir - just fishing for thoughts really

You're not going to make much money investing it in the bank. And I personally wouldn't be sinking a lump sum into a stocks and shares style investment in these uncertain times. What kind of thing were you thinking of?

I reckon you should get yourself down the Nationwide (or one of the other ones that's still a building society) and ask for a meeting to discuss your mortgage options, i guarantee they will fit you in.

[Captain Z]

For me to get a place of my own round these parts it appears as though I'll be paying a good chunk more per month to get something of a similar quality as the place I currently rent

You must be incredibly lucky with your rental agreement then, having spoken to people that have gone/are going through the process of buying and looking into doing the same thing myself this is pretty much never the case.

[Emma Raducanu]

Yeh, our mortgage (25yr) affords us a property which is much less than if we were paying rent. I'm not treating it as a race to get it paid off..I could pay much less per month on a 30yr mortgage for example. When I've got shit tons of money in the bank, I'll probably wack it into paying off the mortgage though. Being free of it is like a dream.

My parents paid off their mortgage on a massive house in their early 30s. They don't know how mentally lucky they are to only be paying bills and council tax.

[MojoJojo]

Why is being 40 significant in this context?

When you get a mortgage, the length of time you pay it off over depends on your age. Because the bank isn't daft enough to let an 70 year old say they'll pay it off over 50 years. It only really starts to be an issue in your mid thirties.

(context here is the last time we remortgaged, the wife and I were asked when we were planning to retire, and she not knowing about this aspect half joked about retiring at 50, which ended up a bit awkward. It's generally best to go for longest term possible and just overpay, as you gain flexibility)

It's also a bit depressing when your st

[edit]art sentences and forget to finish them.

Think I was a bit passive aggressive in this post, sorry if it comes across that way[/edit]

[shiftwork2]

Ohhh mate fucking hell check out Barry Homeowner here.  Have you smashed your sales targets again, well you can't help it can you?

I'm pretty sure it's never a shit idea.  Think about whether life / career may move you on in the foreseeable.  If not then do it.  If something does happen (as happened to me) then there's a decision to be made somewhere down the line.  Key thing is not letting this obligation dictate career / relationships once you've chucked your lot in.  Life unfolds.  It certainly fucking does, and it reveals its constant delights.

[Replies From View]

Why is being 40 significant in this context?

Quite.  "Paying it off until I am 65" sounds like a humblebrag when you know people around you will be renting all their lives.

[BlodwynPig]

I'm 42 and homeless, I'll gladly throw 50 quid a month your way for a part share in the box room when I'm retired/dead.

[Ferris]

I'm 42 and homeless, I'll gladly throw 50 quid a month your way for a part share in the box room when I'm retired/dead.

Homeless since when?!

Re: mortgage - it's absolutely a good idea. We are saving for a deposit now - it's one of the reasons we've stayed in the same tiny apartment for a very long time. It is (relatively) cheap, so we can put money away. There are currently 3 people living in our 1-bed place, Ferris Jr is in his crib in the living room. Every month we stay is another month we can save...

Personally, I want to buy a few dozen acres of land and set up a compound to live in complete with livestock and guard towers, but we'll have to see what the bank says.

[biggytitbo]

Make sure you don't get saddled with a cunt neighbour as it's much harder to move somewhere else. And if you go for a new build you'll probably end up with a defacto car park our outside your front door.

[thenoise]

For me to get a place of my own round these parts it appears as though I'll be paying a good chunk more per month to get something of a similar quality as the place I currently rent - get your point about what happens when I retire - should probably sort something out really - though I do wonder if an investment is a higher risk strategy for a better payoff

In 5 years' time you will be paying less than the renters in your area.  In 10 years' time significantly less.  While earning the same as them (or a lot more assuming you are older and doing the same job).

The only slight possibility is a house crash after Brexit finally happens, but the government typically do everything in their power to stop that happening, and to recover as soon as possible immediately afterwards.  It's as safe an investment as anything is nowadays.

[biggytitbo]

In 5 years' time you will be paying less than the renters in your area.  In 10 years' time significantly less.  While earning the same as them (or a lot more assuming you are older and doing the same job).

The only slight possibility is a house crash after Brexit finally happens, but the government typically do everything in their power to stop that happening, and to recover as soon as possible immediately afterwards.  It's as safe an investment as anything is nowadays.

Not if it turns out to be a MURDER HOUSE

[imitationleather]

No way would I ever be able to afford a deposit until mum dies, and I don't really want her to die.

Also in typical Prince Charles fashion she'll probably outlive me.

And if she doesn't I'll only want to spend all that money on drugs anyway. Fucking house. What good is that to me?

Aren't about 90% of people of my generation in this position? I've only ended up in it because my mum has shacked up with a bloke who owns a house, I was fully prepared for whatever the future equivalent of the poor house is going to be.