Mortgages in middle age

[Macneil]

A family member is 56, earns around 60k, wife a bit younger, 30k. He has 40k savings, but has never bought a house. Is there a sensible affordable way to buy a 250k house and still have some disposable income?

[The Broker]

Yes.

Will need some work though.

[MrOrange]

If he’s not bought before he could get “help to buy”. On a new house that’s 20% (50k), add in 40k deposit = 160k mortgage, so sub 1k a month payments.

[craigjm]

Well a 210k mortgage over 12 years is about 1650 a month at 2%. Banks will stress test up to 8% so need to be able to repay about £2300 ok the affordability scoring to be accepted. Speak to Sarnie

[craigjm]

MrOrange said:

If he’s not bought before he could get “help to buy”. On a new house that’s 20% (50k), add in 40k deposit = 160k mortgage, so sub 1k a month payments.

Maybe but the issue with that is that you are restricted to buying a new build

[Macneil]

...at his age though?

[craigjm]

Macneil said:

...at his age though?

Does £1650pm sound “affordable”?

[James_B]

craigjm said:

Does £1650pm sound “affordable”?

On £90k a year?

I’d say so, yes. That’s a take home wage of just short of £5,000a month between them.

[Sarnie]

Macneil said:

A family member is 56, earns around 60k, wife a bit younger, 30k. He has 40k savings, but has never bought a house. Is there a sensible affordable way to buy a 250k house and still have some disposable income?

The quick answer is yes.

Only he can decide whats "sensible" or "affordable".

If he has a pension or other retirement income, he'll be able to take the term into his 70's to make it more affordable......

[craigjm]

James_B said:

craigjm said:

Does £1650pm sound “affordable”?

On £90k a year?

I’d say so, yes. That’s a take home wage of just short of £5,000a month between them.

Agreed but who knows what their current outgoings are.

[James_B]

craigjm said:

Agreed but who knows what their current outgoings are.

This is true, but it’s definitely the case that that size of mortgage payment can be affordable on their pay.

If their current outgoings are a bit speedy then they hopefully have the ability to knock it back a bit.