mortgage on a pension

m.bradley

My husband and I are retired with a pension income of 30,000
I am 56 years and he is 60 years old.
We are mortgage free at the moment.
If we want a mortgage of 25,000 to 30,000 on a property worth £375,000 how is this best achieved and will our ages work against us?

herbiesjp

There are several lenders that would look at this for you.

How long would you want the mortgage for?

m.bradley

14 or 15 years

herbiesjp

You could find lenders to help with what you are looking for

Ken should be along shortly

jennifernil

We are about to become pensioners on a smaller income than yours, we have just remortgaged with Nationwide. Before that we were with Halifax.

[Deleted User]

My mum got a £40.000 mortgage (on a property worth £120.000) from the Woolwich when she was 71! She didn't even have a decent income ... just her state pension, plus disability allowance & income support.

kenshaz

m.bradley wrote:

My husband and I are retired with a pension income of 30,000
I am 56 years and he is 60 years old.
We are mortgage free at the moment.
If we want a mortgage of 25,000 to 30,000 on a property worth £375,000 how is this best achieved and will our ages work against us?

I am curious as to why you would want to take on debt,from your statement you appear to have managed your affairs well,and you are still relatively young ,but it is secured debt at a later stage .I personally have attempted and succeeded in eliminating debt and I certainly would not want to re-shackle myself.

EdInvestor

There are a lot of people who have high pension income but are a bit short of capital - especially since kids started to visit the "Bank of Mum and Dad" asking for a deposit on a property. :rolleyes:

Home renovations ( especially if people need any special facilities due to illness/disability) can be another reason for wanting a smallish mortgage after retirement.

An offset might be a good bet in the OP's case, perhaps?

You can see there might be demand in future (especially from people with less valuable properties who would find it hard to trade down) for a kind of "bridging" retirement mortgage product, starting off as an offset, with the option of conversion to equity release later, depending on how things go.

kenshaz

I have a KIPPER in our household, Kid in Parents Pockets Eroding Retirement Savings,my wife wrapped his lunch in a road map to no avail,also we keep putting him on the mailing list of estate agents.Joking aside we enjoy and love him.

I see your point of view in respect to the need for parents to assist with the high deposit, in an attempt to reduce the burden of high house prices and obtain a competitive mortgage,especially for FTBs who have no capital to bring forward into the deal.