Can we remorgage in our 60's?

graysurfer

We are in our early 60's and wish to raise £10,000 to do some house refurbishments. Our house is paid for but we have been told by a friend that Banks and Building Society's won't give us a remorgage because of our age, I have yet to ask the appropiate institutions , but wondered if anybody could point me in the right direction. Regards Graysurfer

dunstonh

If you can afford it then there is no reason for you not to get it. You wont get a long term but your friend is incorrect. Most will consider you.

A more likely reason for refusal is the fact it is £10,000. Most mortgages start closer to 30k/40k minimum. Yours is more of a secured loan than a mortgage.

margaretclare

Yes, you can remortgage in your 60s. Shop around and make sure you get the best deal.

Margaret

jennifernil

OH is 64 and retires in 10 months time. We have just remortgaged with Nationwide without problems.

knuckledragger

If lenders do put forward the £30K minimum offer, then take it from a lender who allows unlimited overpayments without penalty. Then just pay back £20K at the earliest point you can.

kenshaz

I was about to stifle your project ,but thought again, why not if that is what you want .Good luck.

MortgageMamma

There are actually lenders who will remortgage an unencumbered property for as little as 5k, some 15k also, but you won't get your legal fee's paid for so be sure to budget a little extra, perhaps £500 for your legals (shop around and use an online firm if poss to keep costs to a minimum). Compare the costs of a remortgage + legals to perhaps a secured loan with a leading company.

Another issue to consider is your income, if you are still working there should be no problem, but a lender will want to see how you will pay the mortgage when you have retired.

If you use a, mortgage broker I imagine most of them would charge you a fee for arranging your remortgage as its so small, so in this case I would say (unless you can find a broker who will do it for commission only) that it could be better to do your own research on this one. However, plenty of lenders these days will lend up to 75-80 and some have no maximum age limit whatsoever, and some will only lend to 65. The first question you must ask any potential lender is what is their maximum age you can have your mortgage to.

If you find a lender thats giving away free money please post it on here as I want some.

HTH and GL

MM

margaretclare

MortgageMamma wrote:

Another issue to consider is your income, if you are still working there should be no problem, but a lender will want to see how you will pay the mortgage when you have retired.

Not all retired people are poor and needy, some have quite a decent income, some are well-off in fact, it all depends. We've had loans in our 60s and we'd also have still been paying a mortgage until we were 83. We decided to do equity release 3 years ago because we could think of more pleasant ways of using £260 a month than on going on paying a mortgage and just having paid it off in time for someone else to inherit it. Freeing up this amount helped us with other things e.g. the roof replacement earlier this year.

Margaret

graysurfer

Hi MorgageMamma, Thank you for your reply. The ones I have tried won't lend money if you carn't pay it back before 75. You mentioned some that will give a longer time span.Could you possibly name some so I can check them out.
We are retired and have a good private pension, I don't see it as a problem because they would still get their money if either one of us expires, if you know what I mean.Regards

margaretclare

Try Abbey - we'd have been paying their mortgage up to age 83.

HTH

Margaret

lisyloo

We are retired and have a good private pension, I don't see it as a problem because they would still get their money if either one of us expires, if you know what I mean.

It's not necessarily the case.
If one of you dies, the other person could stay on in the house for another 20 or 30 years and they may not get their money for a long time.
It can be difficult to evict pensioners, so there is some risk from their point of view.
I'm not being negative just pointing out that there are risks that the bank need to consider.