Mortgage issue with being 53 and having proof of paying repayments after 65

sutton1_2

Hi

I hope someone can help. My product comes to an end in September and I am continuing with the Abbey, I now what to borrow extra money..I am 53 and for the first time they want me to prove I can pay the repayments after retirement age as I am borrowing more money ( ie how much is my pension). My current mortgage is fine they do not want proof. This is ludricrous for the following reasons:
I aim to to sell my house when I retire and buy a flat.
The equity in my house is aprox 3 times the mortgage
Should I default on payments they will take the house and get their money anyway
If I die the house will be sold and they will receive their money

Does anyone know of any mortagge companies who will lend without proof of paying over retirement age?

Thank you

opinions4u

sutton1 wrote: »

I hope someone can help. My product comes to an end in September and I am continuing with the Abbey, I now what to borrow extra money..I am 53 and for the first time they want me to prove I can pay the repayments after retirement age as I am borrowing more money ( ie how much is my pension). My current mortgage is fine they do not want proof. This is ludricrous for the following reasons:
I aim to to sell my house when I retire and buy a flat.
The equity in my house is aprox 3 times the mortgage
Should I default on payments they will take the house and get their money anyway
If I die the house will be sold and they will receive their money

Does anyone know of any mortagge companies who will lend without proof of paying over retirement age?

For the last 18 months, one of the favourite past times of politicians and regulators has been to slam banks for reckless lending.

Some of the criticism has been justified. A lot of it has been to deflect attention from the inadequacies of those making the noise though.

When a lender tries to act responsibility their policy is described as "ludicrous". They can't win can they?

A couple of thoughts to help answer the question.

- have you priced up an 11 year term? While it may involve higher payments now you might be surprised at how little extra the payments will be. You should also look at the total interest payable on this when compared against longer term lending.

- have you offered the Abbey a written undertaking that you plan to sell at age 65, and if so would they consider this? A reason for them declining it would be that they don't know if you will be able to sell in 12 years time. They don't know what the housing market will be like. They are basically running the risk of newspaper headlines of "Abbey reposses bloke because they never proved he could maintain his debt".

- if neither of the above options are appropriate, see a whole of market mortgage adviser. I'm sure that you'll get something sorted out somewhere. Personally I'd give some genuine thought to affording an 11 year term somewhere though.

_Andy_

Shame on those nasty lenders for wanting to lend in a responsible manner I say.

FraudBuster

To achieve a sustainable market that works better for consumers we are going to need more responsible lending, with proper consideration of overall affordability and a reduction in the risk of the mortgage being inappropriate for the consumer.

http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2009/0701_jp.shtml

nw_man

_Andy_ wrote: »

Shame on those nasty lenders for wanting to lend in a responsible manner I say.

About time though. :rolleyes:

treliac

Doesn't the govt increasingly expect people to continue working past the age of 65 though? Up to 68 or even 70 years in the future?

If that is the expectation, something will have to change the age discrimination mindset that commonly exists.

This attitude clearly varies between lenders as I am aware of people who are taking mortgages out that are timed to finish when they are 70 (not myself, I hasten to add - perish the thought!).