Mortgages for Over-Fifties

audrey25

Hello, this is my first post and I am wondering if someone would be kind enough to give me some information or advice.

I have a £60,000 endowment mortgage originally fixed interest now at standard variable rate which is quite high. It has 19 years left to run and I am 57. I wish to switch to a new fixed interest mortgage to get a better rate, balance to be repaid when I reach 70. I have been in stable employment for many years, earn more than enough to cover a mortgage of that amount and have a good credit rating.

Recently, however, I applied to a reputable building society and, at quite an advanced stage when I had already received approval in principle, my application was thrown out because I could not provide proof of pension (other than state) entitlement after age 65. It was in vain to protest that I am in excellent health and propose working until at least 70, and that I have critical illness cover as well as payment protection cover. This seemed to me very unreasonable.

My question is, is proof of additional pension a standard requirement and, if so, is there any way around it? I do not want to go this far with any further applications only to be turned down again a it will affect my credit score. I would appreciate any information or advice.

HelpWhereIcan

audrey25 wrote:

Hello, this is my first post and I am wondering if someone would be kind enough to give me some information or advice.

I have a £60,000 endowment mortgage originally fixed interest now at standard variable rate which is quite high. It has 19 years left to run and I am 57. I wish to switch to a new fixed interest mortgage to get a better rate, balance to be repaid when I reach 70. I have been in stable employment for many years, earn more than enough to cover a mortgage of that amount and have a good credit rating.

Recently, however, I applied to a reputable building society and, at quite an advanced stage when I had already received approval in principle, my application was thrown out because I could not provide proof of pension (other than state) entitlement after age 65. It was in vain to protest that I am in excellent health and propose working until at least 70, and that I have critical illness cover as well as payment protection cover. This seemed to me very unreasonable.

My question is, is proof of additional pension a standard requirement and, if so, is there any way around it? I do not want to go this far with any further applications only to be turned down again a it will affect my credit score. I would appreciate any information or advice.

It is standard procedure now as the FSA requires lenders to prove that they are responsible lenders and lending into retirement is one thing the FSA are going to clamp down on this year.

Lenders all have different criteria. Some want to see the proof. Others will accept your word (or that you will work to 70). The HBOS group for example put the onus on me as the adviser to have made the neccesary checks and given the neccesary warnings if you are under 58 - Lucky me :rolleyes:.

Basically, because of the number of potential solutions and the 'trickyness' of your case, I would say to get advice and to choose a whole of market adviser preferably through reccomendations from family and friends. Failing that, speak with a couple of firms, making sure to ask the questions that Martins suggests in

http://www.moneysavingexpert.com/cg...101649966,86816,

Hope this helps

BTW - why was your endowment set up for such a term? - did the adviser not warn you against taking a mortgage and/or having to pay the endowment premiums on a reduced pension income? In most cases, people would have been netter off paying a higher monthly payment to have it all over and done with by 65.

audrey25

Thank you very much for this. I understand the FSA's reasoning but it is highly inconvenient when you are in my position and just want to pay a good bit less interest. I will take your advice, thanks.

In answer to your BTW question, I was under pressure from my employers to relocate and relied on my advisor without questioning the details too much. I don't remember the length of mortgage term being discussed. I think it is a good reminder to younger people out there to think about what happens when they hit retirement age.

HelpWhereIcan

audrey25 wrote:

I was under pressure from my employers to relocate and relied on my advisor without questioning the details too much. I don't remember the length of mortgage term being discussed. I think it is a good reminder to younger people out there to think about what happens when they hit retirement age.

Not saying that you personally have a case, but AFAIK one of the most common reasons for an endowment complaint being upheld is it continuing beyong normal retirement age. Perhaps someone like Edinvestor and Dunstoh (2 good viewpoints, albeit diametric at times, to listen to) could express their opinions on your potential claim if you post details of the circumstances of the sale and what was and was not discussed.

audrey25

Thanks again. I do not personally wish to go down the endowment complaint route for various reasons but it is certainly helpful advice if anyone else is in a similar situation.

MortgageMamma

Faster Loans

I suggest you change your signature as it is blatantly touting for business and against site rules. This has been reported to the forum moderators who will not doubt speak with you on this matter. Please stop doing this now, it only shows you are desperate for business.

herbiesjp

Thanks MM - hopefully mods will pick up on it soon

MortgageMamma

ive reported him for every single post stef. i hate it when people come on here to try and obtain busienss gets my back up.

EdInvestor

HelpWhereIcan wrote:

Not saying that you personally have a case, but AFAIK one of the most common reasons for an endowment complaint being upheld is it continuing beyong normal retirement age.

I believe it's not regarded as an automatic mis-sale - but the advisor needs to have satisfied himself that there are adequate means to repay the mortgage after 65, ie pension or other income. The problem with your position is that while you are willing to keep working, employers may not be willing to keep hiring you.