20 year mortgage for over 50's

evenoldergit

Evening all,

looking for any gems of wisdom here. I shall be brief!

I am 52 and my wife 53. Though these ages are illegal in most countries we are unable to disguise the fact any longer. We applied, and got a mortgage offer in principle, for a 20 year mortgage for a property that needs work but has great potential. The 20 year bit was to keep repayments manageable but we intend to pay it off before the end of term.

Nat West now say they wont do it over 20 year, only 17. I understand their reasons but wish they had said this originally when they had the details and before I paid for a survey. After all, its not as if we magically became these ages during the application after applying as 20 year olds!

To the point of this missive.

Are most lenders likely to take the same view or is it worth checking around. Annoyed with Nat West not only because of this last change on their part but also due to other errors they have made earlier in the application.

Any help much appreciated.

P

gizmo111

I can't thinl of any lender that will go beyond 70. However to keep the intiial monthly payments down you could go part repayment and part interest only.

Thrugelmir

The terms on which they will lend are clearly stated on their website. Didn't the thought cross your mind to ask the question before applying?

PasturesNew

17 years on repayment at 5% on £100k is £728.66.
20 years on repayment at 5% on £100k is £659.96.
So an extra £70/month per £100k borrowed at 5%.

Fiddle with the figures here: http://www.tigertom.co.uk/ttcalc/mortgage.php?loan=100000&downpayment_percent=0&year=17&interest_rate=5&currency=%A3&amortization=on&periodicity=12&action=Calculate

inca_2

There are lenders that will lend beyond 70 up to 75 but you will have to jump through more hoops to get there to show you will be able to afford the repayments beyond retirement age ( I realise this age may be different for everyone and there are people who still intend to be working at this age). The criteria may well be tighter also. If the difference is marginal I would do as others have suggested and think carefully about whether the difference between a 17 and a 20 year term would make a big difference to you each month. You'll pay less interest overall if you did end up taking the mortgage to the end of the term and if you're looking to redeem before this stage there'll be less to pay off later as you will have been paying more off each month than over a 20 year term. .

Also if you have already paid for fees etc you will need to take this into account as if it is affordable over the 17 year term do you really want to have to shell out for these again?

To be fair, in response to the other comment about checking the details, if the OP was told they could have this term originally then I can understand why they wouldn't feel the need to check it. You would have thought the person arranging the mortgage should have known this or realised if they were not able to go beyond 70?

bacard1

We were in the same position, wanted a mortgage with my partner who would of been 72 when it ended, we had a loan to value of around 65%. We applied\enquired to 3 and got turned down,even though we own our company and will continue to do so for many years (we do not work now). We then swapped advisor who said it was the age that was causing the problem, we reduced the term to 17 years. Applied with the Halifax, and it was fast tracked through, and all sorted in a week