Mortgages for the Retired

Leodogger

Sounds strange I know but we have another 5 yrs to pay off our interest only mortgage which we took out to finance a property abroad. We are now retired and our mortgage deal (tracker) comes to an end in 3 months. We only need 57% loan to value mortgage.

What I want to know, is there any chance of our moving our mortgage to another mortgage provider to get a better SVR as we don't want to fix our mortgage for 2 yrs as we are selling up (hopefully) to buy a smaller place within the next 12 months. Our problem is because we are retired we have no employment income to offer another provider.

Does that stop us from getting onto a better SVR with another provider ?

holly_hobby

Your existing lender may agree to extend the term, they will assess your ability to service the loan on the retirement income you are in receipt of.

Have a chat with them first, as moving to another lender may involve fees and stricter underwriting as an "unknown quantity" - your existing lender is more likely to be flexible with you, as they have had first experience of you as (hopefully) a reliable borrower.

Hope this helps

Holly

Leodogger

holly_hobby wrote: »

Your existing lender may agree to extend the term, they will assess your ability to service the loan on the retirement income you are in receipt of.

Have a chat with them first, as moving to another lender may involve fees and stricter underwriting as an "unknown quantity" - your existing lender is more likely to be flexible with you, as they have had first experience of you as (hopefully) a reliable borrower.

Hope this helps

Holly

We do not want to extend the mortgage beyond its finish date, we just want to ensure that for the next 12 months after our present tracker deal ends we are not paying over the odds on an SVR. We have been offered a £400 cashback to take another product but obviously do not want to tie ourselves in to a 2 yr deal as hopefully we will be moving in the next twelve months and would end up paying a penalty.

It sounds like we are stuck with the SVR with our existing lender.

Thanks for the advice.

JimmyTheWig

What is the SVR with your current lender?

I know this won't help answer your question, but it may help focus on how hard it is worth looking.

What's your outstanding mortgage balance?
What is your repayment vehicle (I'm interested to know how "liquid" it is) and how much is in it?

herbiesjp

What income do you have now that you are retired?
What is the actual mortgage amount needed?

There are ERC free deals out there, but you need to fit criteria to be able to get them.

Leodogger

Hi

We have 43% equity in our house so need a mortgage to cover 57% of the value which is £150,000 (mortgage required £86,000). We have an interest only mortgage at the moment. We had planned to be sold by now, but like everyone else the drop in the market has scuppered our plans.

Hubby doesn't get his state pension until end September and I only have a tiny £35 per month state pension (didn't pay full NI contributions as a married woman). Hubby has two private pensions totalling £59 per week so really our income is neglible at the moment (we are topping up our weekly expenditure with savings at the moment). This is why I said we will struggle to get another lender to give us a mortgage. Come beginning of October we will probably be getting £1250 per month in pensions.

Things don't look bright to obtain a mortgage deal

herbiesjp

Your only option will be to stay with your current lender.

See what deals they can offer, and find the best one to meet your timescales.

Leodogger

JWhite wrote: »

Hi

We have 43% equity in our house so need a mortgage to cover 57% of the value which is £150,000 (mortgage required £86,000). We have an interest only mortgage at the moment. We had planned to be sold by now, but like everyone else the drop in the market has scuppered our plans.

Hubby doesn't get his state pension until end September and I only have a tiny £35 per month state pension (didn't pay full NI contributions as a married woman). Hubby has two private pensions totalling £59 per week so really our income is neglible at the moment (we are topping up our weekly expenditure with savings at the moment). This is why I said we will struggle to get another lender to give us a mortgage. Come beginning of October we will probably be getting £1250 per month in pensions.

Things don't look bright to obtain a mortgage deal

Whoops ! Forgot to add the SVR with our existing lender is 3.99%.:)

Leodogger

herbiesjp wrote: »

Your only option will be to stay with your current lender.

See what deals they can offer, and find the best one to meet your timescales.

I think you are probably right. It wouldn't be for too long anyway - hopefully

Thanks for all the advice.

CLAPTON

JWhite wrote: »

Hi

We have 43% equity in our house so need a mortgage to cover 57% of the value which is £150,000 (mortgage required £86,000). We have an interest only mortgage at the moment. We had planned to be sold by now, but like everyone else the drop in the market has scuppered our plans.

Hubby doesn't get his state pension until end September and I only have a tiny £35 per month state pension (didn't pay full NI contributions as a married woman). Hubby has two private pensions totalling £59 per week so really our income is neglible at the moment (we are topping up our weekly expenditure with savings at the moment). This is why I said we will struggle to get another lender to give us a mortgage. Come beginning of October we will probably be getting £1250 per month in pensions.

Things don't look bright to obtain a mortgage deal

once your husband starts to receive his state pension you can get a pension equal to 60% of his pension instead of your small one

JimmyTheWig

JWhite wrote: »

we will struggle to get another lender to give us a mortgage.

JWhite wrote: »

the SVR with our existing lender is 3.99%.

JWhite wrote: »

we are selling up (hopefully) to buy a smaller place within the next 12 months.

I agree that you will struggle to get another lender to give you a mortgage.
Even if you did, I doubt that you would do so without paying any fees and I doubt that you'd get one of the best deals.

The SVR you'll be going on to is pretty good. Less than we're currently paying on our mortgage (and we're perfectly happy with the rate we've got).
Lets say you managed to find a lender to give you a new mortgage. Lets say they gave you a great rate. Maybe 3.49%.
Over a year that would save you £430 in interest.
I would be shocked to say the least if you managed to get such a deal with fees less than £430.
So I'd say forget it and stick with your current lender.


I asked earlier about your repayment vehicle. What I was getting at was whether it was possible and/or desireable to use this to pay off some of your mortgage now.