Mortgage Ideas

Steve_Cottle

I've been renting happily for 13 years, but now want to buy a house at say £250k with £50k down. The reason being to have some long term security.

The issue is is that although I earn about £60k pa, I'm 54 and not sure about taking on a 25 year mortgage. My wife is 38 and earns £10k so retiring in say 10 years might leave a big income/mortgage gap even alowing for inflation and income increases.

Can anyone help with a good source of general advice as well as mortage choice?

beecher

What about working out what you can afford to repay over 10 years? Might mean a smaller house, but surely knowing you'd pay it over before retirement would give greater long term security, if that's what you're looking for?

Chris2685

Most mortgages I've seen insist that the oldest person named on the mortgage will turn 75 after the 25 years is up. You will be 84, so you may find it hard...

Unless you can take out a shorter term mortgage.

Tiddler_2

The general advice is that you should be looking to have paid off your mortgage by the time you reach your normal retirement age.

More and more mortgage lenders are now asking for a projection of your retirement incomes if your mortgage term extends beyond age 65, whereas in the past they relied upon mortgage brokers/advisers giving you appropriate advice/warnings.

If you have a pension, or are in a job whereby you will continue to earn money beyond the age 65, then you should be able to get a mortgage for a term beyond age 65.

dimbo61

Could you look for a mortgage over say 10 or 11 years and buy somthing a
bit cheaper ( Knutsford !!! )
How much room do you need , bedroooms, living space, large garden ( lots of grass to cut )
Consider looking a bit further away say Middlewich, nortwich, nantwich where
prices are cheaper than posh Knutsford.
Good time to get a bargain if no house to sell and you can get the mortgage
look at a 5/10 year fix and check out empty properties in estate agents windows.
Try not to have a mortgage past your retirement as you will need the pension and lump sum to live on and keep wife happy GOOD LUCK

getmore4less

The key will be income projections and can you pay 200k +interest over that period, whatever that is determines the term of the mortgage.