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  • FIRST POST
    • easy
    • By easy 10th Jul 17, 3:20 PM
    • 2,255Posts
    • 2,633Thanks
    easy
    Remortgaging aged 54 & 56, how long a term will we get.
    • #1
    • 10th Jul 17, 3:20 PM
    Remortgaging aged 54 & 56, how long a term will we get. 10th Jul 17 at 3:20 PM
    Briefly,
    we owe 82K on an interest - only mortgage, currently just on variable rate, with 7 or 8 years to run.
    I'd like to switch to a fixed rate repayment, but obviously that would hit monthly payments quite significantly.
    So I though about increasing the term, ideally to 15 years, 12 at a push.
    What hope do we have of getting a longer term, given our ages - we are both in work which we would anticipate continuing until our full retirement ages.
    I try not to get too stressed out on the forum. I won't argue, i'll just leave a thread if you don't like what I say.
Page 1
    • csgohan4
    • By csgohan4 10th Jul 17, 3:28 PM
    • 3,567 Posts
    • 2,239 Thanks
    csgohan4
    • #2
    • 10th Jul 17, 3:28 PM
    • #2
    • 10th Jul 17, 3:28 PM
    do you have a payment vehicle to pay the rest off at the end of the term?
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • danm
    • By danm 10th Jul 17, 3:32 PM
    • 419 Posts
    • 145 Thanks
    danm
    • #3
    • 10th Jul 17, 3:32 PM
    • #3
    • 10th Jul 17, 3:32 PM
    lenders will generally lend until the point in time where you tell them you plan to retire.


    They are relying on you to be truthful - obviously if you say something silly they will call you out
    • Darkstar
    • By Darkstar 13th Jul 17, 4:27 PM
    • 356 Posts
    • 31 Thanks
    Darkstar
    • #4
    • 13th Jul 17, 4:27 PM
    • #4
    • 13th Jul 17, 4:27 PM
    I am in a very similar situation. Interest only mortgage and in my 50's. I am in the process of remortgaging but changing to a repayment that ended when I retire would be a huge payment shock. Instead I have approval to run till my 74th Birthday.

    You will need proof of how you will finance retirement which is getting harder as they insist on using the assumption you will buy an annuity. Either way my DC pot is big enough to demonstrate if I was stark raving bonkers and bought a annuity at 41:1 then I could still afford the repayments.

    I don't plan to let the mortgage run that long as part of the 25% tax free from my DC pot will pay of the remaining balance when I finally do retire. Which was the plan for the interest only I did have but now I just don't qualify for the few remaining interest only options left.

    A simple test is to use one of the mortgage affordability calculators for the amount you want to borrow, 82K, over the term you would like, till your 75th birthday, but only use your provable retirement income from DB and/or DC forecasts and remember to including the state pension.
    ------------------------
    Dark in here, is't it...
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