Joint Mortgages and retirement ages

klaatu

We have a joint (husband and wife) mortgage with A+L with a deal ending Sept 30th, so I'm looking for a new deal. I fancied the HSBC lifetime tracker, so went onto their web site and got an AIP. I'm 50 next December and my wife was 55 in May. Our current mortgage has 15 years to run, i.e. until I'm 64 and my wife is 70. My wife has no income. The house is jointly owned.

The HSBC web site said we could only have 14 years (I don't understand why, but anyway...), but that's not a problem. When I phoned HSBC to discuss it, they said we could only have 9 years because of my wife's age. That IS a problem.

I don't understand why my wife's age is an issue when I'm paying the mortgage. It wasn't an issue with A+L when we took out the mortgage 3 years ago. Is HSBC's position normal these days? We'd stay with the A+L but they don't seem to have any deals that appeal to us at the moment.

Steve

UK007BullDog

It goes by who is the olderst on the mortgage not just by who pays it.

If you move your mortgage deal have to end by age 65 (whoever reaches it first) unless you can prove now that you get enough pension to support the mortgage past 65.

What were your plans anyway to pay the mortgage once you retire?

Unless you take your wife off the mortgage. But if you find a good broker they will sort it for you and you could have a 14 year mortgage. As the lender works off your next birthday which will be 51.

You dont say how much your mortgage is but if it is under £65K I would stay with your lender unless you can get a very good low/no fees deal somewhere else.

klaatu

UK007BullDog wrote: »

It goes by who is the olderst on the mortgage not just by who pays it.

If you move your mortgage deal have to end by age 65 (whoever reaches it first) unless you can prove now that you get enough pension to support the mortgage past 65.

I don't understand why this wasn't an issue with A+L when we took out the mortgage 3 years ago, we were in exactly the same situation then.

What were your plans anyway to pay the mortgage once you retire?

I never had any such plans. The mortgage runs for another 15 years and 2 months. I reach 65 in 15 years and 5 months. In fact, we'll actually be better off when my wife reaches retirement age as she'll start getting her company pension and state pension, whereas currently she has no income at all, which makes HSBC's decision even more crazy.

Unless you take your wife off the mortgage. But if you find a good broker they will sort it for you and you could have a 14 year mortgage. As the lender works off your next birthday which will be 51.

My next birthday will be 50, as I said.

You dont say how much your mortgage is but if it is under £65K I would stay with your lender unless you can get a very good low/no fees deal somewhere else.

Interesting that you quote that figure, the mortgage is currently £64,500. I'm thinking that I may have to stay with A+L. They have a 5-year 6.99% fixed for no fees, which is probably OK.

Steve