remortgage at 66

tuts1230

Hi ,my mortgage ends march 2013 and i would like to take out an interest only mortgage to release cash if i can afford the repayments.Who would be my best start.I will have a total income of £16500 with our joint pensions and a council tax of 1450 a year to pay with no debt but have no savings and would like to finance holidays from my fund.if i take a smaller amount could I have a top up later,thanks in anticipation.

BoGoF

And how do you propose repaying the capital if (and that's a big if) you got an interest only mortgage?

somethingcorporate

Raiding your house equity to pay for jollies, sounds like a really sensible idea!

laurel7172

Could one of you still afford the interest comfortably if the other died *and* interest rates rose?

Annisele

You could have a look at SHIP's equity release guide. IMO equity release should be a last resort, and not something to finance holidays with - but it might be an option for you.

If possible, you'd probably be better off downsizing, or doing something else to increase your income. You're also a little young for equity release (again IMO).

holly_hobby

You could of course consider a Lifetime Mortgage - your age suggests that you are suitable.

No repayments during the lifetime of the mortgage, either interest is rolled up on the debt, or a % of the property is "sold" to the provider - with repayment on entry into long term care, death or sale of the property - obviously this will affect any free equity left for beneficiaries upon redemption of the loan. (although there is one provider I am aware of, that gives the option of ring fencing the debt, achieved by your paying some or all of the mortgage interest on a monthly basis, which will avoid equity erosion over the period the arrangement is held).

In all cases, the amount of equity released will depend upon the property value and your age at the time of application - the younger you are the more restrictive the amount released.

You must also consider that the release of any equity may affect any means tested benefits you may qualify for.

Should you wish to consider this type of arrangement you should seek the advice of a qualified lifetime mortgage adviser (any selected provider should be a member of SHIP and its imperative that they provide a no negative equity gte)

Couple of links to get you start on basic info how to obtain advice (if you google yourself you will find names of providers which I haven't listed).

http://www.ship-ltd.org/

http://www.societyoflaterlifeadvisers.co.uk/

http://www.equity-release-lifetime-mortgage-schemes.co.uk/equity-release-schemes/lifetime-mortgage/

Hope this helps

Holly

tuts1230

hey ,you pass this way just the once and due to helping family I leave myself short of ready,s on a restricted income but have a -property worth, even with the drop in market value @130k and my kids all earn more than me so leaving a nest egg is not in the equation nor expected of me,we just want to live whats left of our years while still able to enjoy my jollies to spain and eat well and be warm while we are in the uk.

twinkle10

What is process of remortgage ? What all documentary is essential to remortgage the property? plz help to know these things.

property.advert

All these roll up interest mortgage options are highly priced and personally, I think they are rip offs. If you can borrow a low amount on a traditional mortgage at say 1.99% now, which you can, then why charge 6/7/8% or whatever for equity release. You see, financial institutions don't actually want you to repay the money they lend you. If everyone repaid, they would go bust. What they do want is serviced debt, which costs little to maintain and where there is adequate surety.

Of course, they are at risk of someone living way past their actuarial derived departure date but I don't see how that is worth the huge margins they market these things to; often to people who know little about them and who probably cannot work out the full implications.

However your options are limited as you have no savings. The classic one is to downsize and release your own equity, free of rolled up interest and if possible, that is what I would advise. A more radical approach would be to have your kids buy your house from you. You state that they all earn well and are not expecting anything from you. Well, this might be the perfect solution.

geoffken

then in 6 months time they can throw you out and sell and you are homeless.
It happens so DO NOT TAKE THIS ADVICE ABOVE!!!!!

property.advert

geoffken wrote: »

then in 6 months time they can throw you out and sell and you are homeless.
It happens so DO NOT TAKE THIS ADVICE ABOVE!!!!!

Usufruct ?

Lease ?

No-one mentioned a 6 month AST !