REmortgage queries ----- cant understand

pepper33

My sister and I have a remortgage of 97000 with the Abbey, which was a remortgage from the Chelsea.... It worked out cheaper, and we wanted to borrow another 20000 and they have now queried when I retire how am I going to pay the mortgage, but they never asked this whenever we took it out two months ago. I intend to work or use the equity in the house when I retire, but they refuse to lend. We dont even have 50 per cent LTV on the house yet.
My sister is younger than me, we had an idea what if she said she wanted to take it out herself, over 12 years, Any ideas?????

Cannon_Fodder

I would be worried that having to increase the debt by £20k now, might see you repeat that every re-mortgage.

Get on the debt-free or mortgage-free-wannabee board and look into your expenditure/outgoings vs income.

By the time you get to retirement, you might have little LTV leeway or equity left.

You need a repayment vehicle, or to switch to a repayment mortgage, so you KNOW that you will have equity left in retirement.

Have you got wills, and the correct basis of home ownership, to ensure the house passes to each other upon death of one, and to prevent the Lender from forcing sale to recover the capital?

Cannon_Fodder

pepper33 wrote: »

they have now queried when I retire how am I going to pay the mortgage, but they never asked this whenever we took it out two months ago.

MortgageForce wrote: »

No mention of the mortgage being interest only? I believe the poster is referring to maintaining mortgage payments in retirement and not repaying capital.

Ah, I mis-read, thought "pay-off" the mortgage..thanks for pointing out.

What's the term? Maybe it was close enough to retirement that it didn't overly matter, until they wanted a £20k chunk extra.

getmore4less

pepper33 wrote: »

My sister and I have a remortgage of 97000 with the Abbey, which was a remortgage from the Chelsea.... It worked out cheaper, and we wanted to borrow another 20000 and they have now queried when I retire how am I going to pay the mortgage, but they never asked this whenever we took it out two months ago. I intend to work or use the equity in the house when I retire, but they refuse to lend. We dont even have 50 per cent LTV on the house yet.
My sister is younger than me, we had an idea what if she said she wanted to take it out herself, over 12 years, Any ideas?????

You remortgage then 2 months later need to borrow another £20k(over 20% more) why?

What are the details of the mortgage, incomes and your ages?

Let_Us_See

If your sister can meet the lender's affordability criteria from her own income then you can still have a joint application (and mortgage) but declare your income as zero. Consequently, how you (personally) will be able to maintain your mortgage payment in retirement will not be an issue.