too old for mortgage?

rosie_drew

I am in my 50s and In order to get rid of a huge mortgage needs to downsize next year. I have a large deposit of approx £100,000 and an income of early pension of approx £450 per month.

I would like to borrow about £100,000 is this possible? How do I find out what the repayment will be?

getmore4less

If a lender will give a perpetual mortage then on £100k interest is £83.50 per % point so a 5% loan is £417.50

Lets say 50 and mortgage free by 65 so a max of 15 years

£100k over 15y at 5%(variable so could go up or down) is £791pm


If your only income is £450 forget it

krankyoldman_2

If I can tag my query on the end of Rosie's (as there are similarities !!)
My wife and I took early retirement and downsized a couple of years ago (mainly to clear our mortgage) and are living off my partial pension (from one of my employers) and some savings for another couple of years until more of our pensions kick in at 60. Our problem is that we downsized into a flat, and now we are finding that we actually do need some outside space!.
We recently looked at purchasing a new house which would require a £80,000 mortgage, but were informed by the mortgage broker that our partial pension was the only thing that would be counted as salary, and hence there was no chance of obtaining a mortgage from any lender.
I know that we can pay off this mortgage after another two years (from the current values of pension lump sums and life insurance policies), pay the monthly interest on a 2 year fixed interest only mortgage from investment returns, and guarantee that mortgage with our (mortgage free) holiday home abroad, but nobody will offer a mortgage !
The two points I am trying a make are :-
Has anyone any suggestions to solve our problem ? (We cannot sell the holiday home until next year due to heavy local Capital Gains Tax)
A cautionary tale to people looking at early retirement - get the downsizing right first time, as mortgages (and loans !) are much more difficult to obtain if your monthly income is small, as this is the only criteria the banks and building societies seem to use.