Age limitation on new mortgage application

Treble

I wonder if anyone can give me some advice?

I am 37 and my wife is 19 years my senior and we have been married for 8 years. We have an interest only mortgage but have no current repayment vehicle due to our business failing 2 years ago. We are currently looking into remortgaging onto a repayment policy with a slightly increased value so we can clear off some debt on the way.

Our house is worth £300k and the mortgage value we are looking for is £160k. I am the only earner and am earning enough for this not to be a problem in the value of mortgage we need. Therefore there is no reason to consider my wife in the financial calculation (she is a lady of leisure). However due to her age we are being told we are limited to an 18 year policy unless we go with Woolwich who are the only company who don't cap the age restriction.

The only way I can be considered alone for the mortgage application is if we transfer the equity into my sole name which means solicitors fees, etc and my wife essentially being written out as an owner of the house (which neither of us are happy with).

So are these my only 3 options:
1) Get a mortgage with the Woolwich
2) Pay higher fees over 18 years instead of 25
3) Transfer the equity in the house 100% to me?

I just think it weird that although my wife is not contributing to the mortgage in any way her age is limiting the term of the mortgage.

If anyone could enlighten me that would be great and much appreciated.

Steve.

holly_hobby

You say your business failed .. were you made bankrupt ?

Have you been told by a broker that Woolwich are the only option on this ? (as in my experience, this shouldn't really be an issue as the mge has not been assessed on Mrs Treble's income)


Holly

Treble

The business failed but I was not made bankrupt or anything like that. We kept things as clean as possible and so there is little bad history to speak of at all.

L&C mortgage brokers words "Woolwich are the only company who will offer you a mortgage regardless of your ages. If you want to go anywhere else it will be at the reduced term of 18 years unless you transfer the equity in the house into only your name".

He was very insistent about it - but I find it really strange.

If my wife's income is not part of the calculation then how can her age become a limiting factor?

They did say it might be something like the mortgage company liking the policy being in the name of the people on the land registry documents, etc.

???

Meeper

The adviser you spoke to was incorrect, which does not surprise me as it was L&C's "processing factory" that you spoke to. What you need is an adviser to take the time to do their job properly, speak to the lender and explain the situation.

Treble

I thought as much!

To be honest L&C did apply for 1 of the Woolwich policies and we left it with them. After 3 weeks we hadn't heard a thing. It turned out they should have sent us an email and said they had been trying to call us (my wife is at home all day and my mobile is on 24/7 as it's for work).

Apparently we were unsuccessful in our application and should have told us 3 days after we applied. I still think they just forgot about us and were blagging as there were no notes on the account and no real explanation of why we were unsuccessful. Avoid at all costs!

At least I know I can speak to other institutions now with a clear mind.

Many thanks.

Thrugelmir

Treble wrote: »

I just think it weird that although my wife is not contributing to the mortgage in any way her age is limiting the term of the mortgage.

Contributing no, liable yes.

Increasingly lenders are imposing and/or reducing upper age limits. In reaction to the suggested proposals in the FSA's mortgage market review. Where more detailed affordability checks will be required on those with mortgages continuing into retirement.

getmore4less

Critcal missing information

What rate is your current mortgage?
Who is it with?
How big is it?
What debts and rates do you have?
Income?

There may be no need to remortgage.

One option is just leave the mortgage as it is, pay off your debts then overpay the mortgage.