getting a mortgage at 54

[ironv8]

after a divorce where the ex got the mortgage free family house in return for me keeping 75% of my final salary pension!! (don't ask!!)
lenders will give me 4 x salary which is approx 170k, but i only need about 130k and I've got about 35k savings as a deposit. Looking at borrowing about 130k

With a 15 yr mortgate deal I'll be paying about 900/month, I could get a 20 or even 25 yr mortgage

My question is, is it better to get the maximum mortgage duration possible and be able to have more money to spend now. I'm thinking I'll be skint with nigh on 40% of my take home pay going on mortgage.
the 20 or 25 yr option gives me more money now plus the option of paying chunks off when extra money may come in. Thanks in advance

[ToothbrushMan]

If your salary is £42,500 then Im guessing your take home will be in the region of £2200 - 2400pcm?

If you opt for 15 years on the mortgage at £900pcm I would say youre doing pretty well in terms of disposable income after paying the mortgage circa £1300 ish minimum so unless you have expensive tastes or hobbies (and assume that the ex has no hold on your remaining finances bar the 25% of pension) that will tear into that disposable money I would go for the short mortgage. You will save tens of thousands in interest.

If you are 54 now and was to take a 25 year mortgage on do you a) what to be working to pay it off until youre nearly 80 ? and b) is your work of a type that can be described as reasonably secure or long term that will carry you through your 70s?

15 year mortgage all the way for me. I would even see if there is a 10 year option and pay in more a month but that does depend on what your other outgoings are each month.......

[Sarnie]

ToothbrushMan said:

If your salary is £42,500 then Im guessing your take home will be in the region of £2200 - 2400pcm?

If you opt for 15 years on the mortgage at £900pcm I would say youre doing pretty well in terms of disposable income after paying the mortgage circa £1300 ish minimum so unless you have expensive tastes or hobbies (and assume that the ex has no hold on your remaining finances bar the 25% of pension) that will tear into that disposable money I would go for the short mortgage. You will save tens of thousands in interest.

If you are 54 now and was to take a 25 year mortgage on do you a) what to be working to pay it off until youre nearly 80 ? and b) is your work of a type that can be described as reasonably secure or long term that will carry you through your 70s?

15 year mortgage all the way for me. I would even see if there is a 10 year option and pay in more a month but that does depend on what your other outgoings are each month.......

£1300 doesn't go very far once you add in basic living costs like Council tax, gas, electric, water, car tax, food, petrol, phone.......

I would take the longer term, live your life comfortably and then overpay as your finances allow, rather than being a slave to the mortgage.......

[95JO]

£42.5k is roughly £2.6kpm based on a 3% employer pension contribution and no student loan etc

[anonymous-user]

The reality of divorce, wife sitting pretty in a fully paid for house while the husband is homeless and starting from scratch again. Every year past the age of 40 makes it harder and harder until it gets to the point where you will never be able to retire due to having to pay a mortgage.

I would personally go for the longer term so that I was not stretched to the max every month and try and save some money in the hope of overpaying or keeping aside for a rainy day.

[TwigtheWonderkid]

ironv8 said:

after a divorce where the ex got the mortgage free family house in return for me keeping 75% of my final salary pension!! (don't ask!!)

Sorry, got to ask. Do you have dependent children? If not, how the hell did that happen?

[rustyuk]

You could always carry on renting?

[rossub]

95JO said:

£42.5k is roughly £2.6kpm based on a 3% employer pension contribution and no student loan etc

I assume you mean employee. I'd be amazed if a final salary scheme is only 3% contribution!! My average earnings pension is nearly 13%.

[CzechItOut]

I would be tempted to go for the longer term, but pay it off as if it was a 15-year term, overpayments allowing.

This will mean you should hopefully pay off the mortgage before you get too old, but at the same time gives you some flexibility in case you need some short-term cash.

[Helicopter123]

TwigtheWonderkid said:

ironv8 said:

after a divorce where the ex got the mortgage free family house in return for me keeping 75% of my final salary pension!! (don't ask!!)

Sorry, got to ask. Do you have dependent children? If not, how the hell did that happen?

CETV on the pension would have been taken into account and at present these are at, or close to, the highest levels seen.

[95JO]

rossub said:

I assume you mean employee. I'd be amazed if a final salary scheme is only 3% contribution!! My average earnings pension is nearly 13%.

Yeah, my bad - Mine is nearly 26%

[supercommuter]

Helicopter123 said:

TwigtheWonderkid said:

ironv8 said:

after a divorce where the ex got the mortgage free family house in return for me keeping 75% of my final salary pension!! (don't ask!!)

Sorry, got to ask. Do you have dependent children? If not, how the hell did that happen?

CETV on the pension would have been taken into account and at present these are at, or close to, the highest levels seen.

How is this fair at all? it is his pension. Obviously we don't know the details but on face value this is unbelievable.

[Stella Tortoise]

supercommuter said:

How is this fair at all? it is his pension. Obviously we don't know the details but on face value this is unbelievable.

Maybe his wife stayed at home bringing up the children and they would have both lived off his pension in retirement?

[craigjm]

If you’re 54 you won’t get a 25 year mortgage. You could get one to 68 from the usual suspects so that’s 14 years. Sarnie is your man to speak to

[Stella Tortoise]

craigjm said:

If you’re 54 you won’t get a 25 year mortgage. You could get one to 68 from the usual suspects so that’s 14 years. Sarnie is your man to speak to

Lending into retirement is possible depending on circumstances.

[craigjm]

Stella Tortoise said:

craigjm said:

If you’re 54 you won’t get a 25 year mortgage. You could get one to 68 from the usual suspects so that’s 14 years. Sarnie is your man to speak to

Lending into retirement is possible depending on circumstances.

Show me an agreed mortgage to end when you’re 82 then if you’re so confident. I know some will loan longer but not that much longer which is why I said usual suspects

[Stella Tortoise]

craigjm said:

Show me an agreed mortgage to end when you’re 82 then if you’re so confident. I know some will loan longer but not that much longer which is why I said usual suspects

Oh.

[ironv8]

TwigtheWonderkid said:

ironv8 said:

after a divorce where the ex got the mortgage free family house in return for me keeping 75% of my final salary pension!! (don't ask!!)

Sorry, got to ask. Do you have dependent children? If not, how the hell did that happen?

because she didn't have much of a career, worked part time with little or no pension. there's nothing of hers to divide. Kids are all over 18 so no dependents.

[cheeky_chops]

craigjm said:

If you’re 54 you won’t get a 25 year mortgage. You could get one to 68 from the usual suspects so that’s 14 years. Sarnie is your man to speak to

i tried to take out a 23 year virgin mortgage in 2015 (similar to OP, divorce etc) and i got a letter asking how i intened to repay the full sum owed as it went 2 months past my 68th..... I had to take a 22 year mortgage in the end!!

[craigjm]

cheeky_chops said:

craigjm said:

If you’re 54 you won’t get a 25 year mortgage. You could get one to 68 from the usual suspects so that’s 14 years. Sarnie is your man to speak to

i tried to take out a 23 year virgin mortgage in 2015 (similar to OP, divorce etc) and i got a letter asking how i intened to repay the full sum owed as it went 2 months past my 68th..... I had to take a 22 year mortgage in the end!!

There you go then. That’s far more common than “yes sir you can have a mortgage until you are 84”