Interest only mortgage, but no endowment policy !

issy0503

Well I must say, Santander were great on the phone, I explained and straight away they offered a repayment mortgage over 25 years, taking me to 75!! scary! needless to say I will go for that, the payments only rise by about £60 per month, Thanks all.

kingstreet

issy0503 wrote: »

Well I must say, Santander were great on the phone, I explained and straight away they offered a repayment mortgage over 25 years, taking me to 75!! scary! needless to say I will go for that, the payments only rise by about £60 per month, Thanks all.

Although the payments would be a lot lower, you are going to have to be disciplined to make overpayments to get it paid off before you're 65.

If you go to 75 how are you going to continue to pay the mortgage if you can't work beyond 65?

I find it odd lenders can offer a term to 75 over the phone with no consideration whatsoever when advisers have to record chapter and verse on affordability, and the physical aspects of working into retirement, to go a few months past 65.

issy0503

Kingstreet, I asked about when I retire and the lady said my pension credit would cover the interest on the mortgage and i would cover the shortfall,and at least Ive got more time to think about what to do, I can overpay if I can as much as possible,, I need my kids to earn lots of money and keep me !!! lol

kingstreet

issy0503 wrote: »

Kingstreet, I asked about when I retire and the lady said my pension credit would cover the interest on the mortgage and i would cover the shortfall,and at least Ive got more time to think about what to do, I can overpay if I can as much as possible,, I need my kids to earn lots of money and keep me !!! lol

That is frightening. I'm not saying you shouldn't do this, but it does annoy me they can ignore their own rules when they feel like it.

Their current criteria on the issue;-

We will not accept any case where your client's stated age of intended retirement is over 75 years.

We require evidence of both current and retirement income where your client wishes to take a mortgage beyond their stated retirement age.

In addition, we will not consider cases in this category where our automated check shows that affordability is not proven based on current income.

:mad:

issy0503

Well, I await the paper work, I have been with the company since they were Nat. Prov, whether that makes any difference or not. I was surprised, but hopefully it will work out fine in the end.

surreybased

I would certainly overpay - you're at risk from very much higher payments due to interest rate rises.
Have a look at a mortgage calculator - bbc have one and play around with the term, interest rate and see what impact it has.

What is the house value? Just wonder if they believe the balance will be so low that the risk to them is minimal - i.e they could get the money from a house sale if needed.

issy0503

The value of the house is around £135k