Pensioner's Mortgage

srak

I am a 66 year old with a good teacher's pension as well as my state pension. My wife and I have seen a bungalow that we would like but it is much more expensive than our house as it is in a very exclusive area. Therefore I would need a small mortgage-[are they called retirement mortgages]---about £20,000. I have an insurance policy of £35,000 maturing in 4 years time.
I have searched and searched but can't find any information. Can anyone advise please?
Thanks

Ian_W

Hopefully one of the helpful brokers who lurk on this site may post with some expert help shortly. I've personally never heard of "pensioner mortgages" and I'm wondering if you may be getting mixed up with equity release schemes/lifetime mortgages, which allow you to release equity from your existing property rather than borrow for a new purchase, as in your case?

The 2 problem areas, neither insurmountable IMO, are age and size of loan. There are lenders who will take on older borrowers [subject to earnings etc] though I think these tend to be the BS's rather than banks. Coventry BS, for example, lending conditions require that the mortgage is repaid by age 85, their website is HERE, you may try the Teachers BS or other mutuals.
A lot of lenders don't want mortgages less than £30-50k but again there are some, Nationwide I think is likely to be one who will lend the type of amount you want. Alternatively, you could consider an unsecured personal loan which are very cheap ATM though you'd need to meet the earnings criteria and watch out for repayment costs when you policy matures.

No apple I'm afraid, but I'm sure you should be able to finance the bungalow with a bit of research. BoL.

Robert_Sterling_3

At first sight it looks as if there would be bags of equity in the new property.
Interest on the extra £20,000 mortgage ought to be around £1000 per annum. The £35,000 more than could pay it off after 4 years.
Nationwide might do it.
Alternatively that might give you a loan at 6.7%.

srak

Thanks to both of you.

margaretclare

Hi

I had a mortgage with Abbey and that would have continued until we were 83. I used equity release to pay it off, but Abbey were quite happy to allow it to continue for that length of time (another 15 years, it would have been).

Like you, we both have good pensions income in our own right.

Aunty Margaret