25yr mortgage at 49 yrs old?

herbiesjp

@ Gentlepurr

The fact the mortgage is only £70k against a value of £280 will indeed go in your favour, but it will depend on your whole situation as to whether they will agree the loan for you

TheTraveller_3

Hi,

Hope it all works out for you. Here's some of my thoughts. Not easy to up on paper so I hope it makes some sense...

If you've not already done so you should start off by completing a realistic budget planner like the one on this site. This will help fine tune your current spending and calculate how much you can really afford to pay towards your mortgage.

Next ask yourself a few questions...When you eventually downsize what are your property aspirations? If you were to downsize today what would the new purchase price be? Do you expect the price differential to be the same if you downsize at a later date? Regardless of when you downsize is your current equity likely to cover the full purchase price of the new property? If you're 100% certain your existing equity will more than cover the cost of your future purchase then you could consider an interest only mortgage. (Not much room for error though so be very careful and consider making overpayment or separate savings (another subject)).

If your exiting equity means there would be a shortfall regardless, then, having set a figure you can realistically afford, you should pay careful consideration to your retirement income. Will you have just a basic state pension or do you also have a private pension/occupational pension, will these provide a lump sum? Are you likely to receive any lump sums from any other sources? Could these lump sums clear your currently equity shortfall? If so, again, you could consider an interest only mortgage but the same argument applies, there's little room for error so be very careful.

If your existing equity won't cover the full purchase price and your retirement income is unlikely to allow you to maintain the mortgage in retirement and the shortfall can't be cleared from any eventual lump sum you could consider a split mortgage. (i.e. part repayment part interest only)

Again this requires careful consideration. The objective is to structure the mortgage in such a way that it's affordable but also ensures the repayment mortgage bit (your shortfall) will be cleared by your retirement age, leaving you mortgage free. (example: You expect there will be a shortfall of £30,000 regardless of when you downsize. Take £30,000 on repayment over 15 year and £40,000 on interest only. If you when downsize in 8 yrs you would clear the £40,000 from your equity and carry on with the remainder of the £30,000 until retirement.)

itsfrommark

Hi, I have remortgaged twice over the past 4 years on a discount tracker for 25 year term (approx £100K). Best deal I could get was 4.6% from Natwest and lastly the Halifax at 4.9%.....same age as you. Offered 5.2% by Halifax to remortgage again now for 2 years ...but still looking elsewhere. Best wishes Mark

Cocoa_3

I am 46 and have just extended my mortgage to 40 yrs with Nationwide which I believe is the max term

totalguitar

I'm moving soon and am currently with Halifax. I'm 40 and they said they will lend until in 69 as long as we have discused the fact i'm borrowing beyond retirement. I won't be borrowing for as long but it's handy to know. BTW Halifax are apparently releasing new rates this morning.

MortgageMamma

Hi There

I think before you do anything with your mortgage you should go see a solicitor about the husband, you are entitled to remain in your home until the child is 16, (or 18 if goes into education) as far as I'm aware. Don't let this pratt dictate to you what you are and are not doing, as it seems to me he may have done that for a long while. if you need to get him out of your home there are ways of doing it legally. Your son may get a little upset, but believe me, I have been in your situation and you will be suprised how understanding and resilient 13 year olds can be. Sometimes you have to go through a bit of pain, and the kids will have a rough time, its inevitable with a marriage break up, but when the waters calm and your life is your own again your son will be happy and you will see it is all worth it. Be strong and call on all your friends and family to support you and your son, I wish you the very best of luck.