Advice please - planning to retire

SpiderD

Hi

Sometime in the next two years I hope to retire. We own our house valued at 135k (mortgage paid) and would like to buy a retirement cottage for around 250k. Other assets (ISA's etc) are around 200k. The thing is we would like to buy the cottage before selling the house (to keep control over the timescales) so need a short term 50k loan to be repaid when the old house is sold. What's my best option? Bear in mind I would probably do this a few months before retirement. Do I remortgage the house or try and raise a mortgage on the cottage? I'm aware of redemption fees etc.

Thanks

dimbo61

You could look at an offset mortgage for the cottage and pay the money from selling your house into the offset account ( so therefore no interest! )
At the end of the fix say 2/3 years just pay off the balance.

herbiesjp

Indeed - raise the funds against your current place.

Either offset or fully flexible options would be best for you if you have liquid assets to put into the mortgage, so as dimbo61 says no interest to pay (not so dimbo!)

Should be straight forward at that LTV, assuming everything else is ok

Some lenders may even treat as an unencumbered re-mortgage and therefore include free legal fees and free valuation in the deal, to keep costs down

SpiderD

Thanks guys - that's a bit like having an agreed overdraft facility, yes?