Mortgages for over 50s

Smudgey

We are looking to try to get a mortgage in the next few months, my partner is now 50, are there many decent deals out there for us?

Also, we are living in rented accommodation at the moment, both of us have had mortgages previously in our lives, do we still qualify as first time buyers, as we have nothing to sell?

Dave_Ham

Everything will depend upon your loan to value. With the advent of the death of interest only mortages, it can sometimes make getting a high value mortgage tough into the 50's

Most lenders will look at you as first time buyers, depending upon when your mortgages where redeemed.

Hope this helps, ask away any other questions...

Conrad

There's no real benefit to be a FTB, so that's the least of your concerns really.

Age and term allowed are the critical points.
Some lenders can allow above age 65 subject to certain criteria being met.

Otherwise you'll get a 14 year (not 15) mortgage but this often fails affordability tests. Another reason why removing interest only is a bit short sighted.

The_J

Well it's not short sighted. This is the second time I have seen you advocate Interest Only as the better option because it is "cheaper", this is unacceptable. Suggest you revert to your compliance department for guidance before the FSA have a chat with you.

If older people take interest only how are they going to repay it? Still got to come up with the money in 15 years time. It can be a good idea if they have a lump sum from their pension at retirement or an old endowment. Those would be perfectly acceptable reasons to take interest only but absolutely NOT because it is cheaper.

ticktack_2

The_J wrote: »

If older people take interest only how are they going to repay it?

The mortgage gets repaid when the property is sold.

I have a Halifax Retirement Home Plan mortgage. It works very well for me, and it's about the third (consecutive) interest-free mortgage I've had since I retired. It's a real headache for me that these are no longer available. I'm not sure if I'll be able to transfer it when I sell this place and buy another.

However, I do understand why they've been withdrawn. There's always people who'll borrow more than they can afford, even if they're old enough to know better.

The_J

ticktack wrote: »

The mortgage gets repaid when the property is sold.

Errr. Where are they going to live? Buy somewhere outright with the equity? Why not do that now if they have so much equity? Oh, they are hoping that house prices will increase? Good luck with that.

I'm fine with interest only if there is more than 125k in the property as that will buy somewhere. But it depends on where you live, someone just bought a garage on my road for 145k.

ticktack_2

The_J wrote: »

Errr. Where are they going to live? Buy somewhere outright with the equity?

You mean, in the days when these mortgages were available, where did I live after selling the property with the interest-only mortgage? I bought another property with another interest-only mortgage, of course.

The alternative scenario with these type of mortgages for older persons is that the older person dies, as older persons are wont to do, and then the mortgage gets repaid by the legatees when the property is sold.

I'm fine with interest only if there is more than 125k in the property as that will buy somewhere.

Though as it's my mortgage and not yours, it doesn't matter a whole hell of a lot whether you're "fine" with it or not.

The_J

ticktack wrote: »

You mean, in the days when these mortgages were available, where did I live after selling the property with the interest-only mortgage? I bought another property with another interest-only mortgage, of course.

The alternative scenario with these type of mortgages for older persons is that the older person dies, as older persons are wont to do, and then the mortgage gets repaid by the legatees when the property is sold.

Though as it's my mortgage and not yours, it doesn't matter a whole hell of a lot whether you're "fine" with it or not.

It's your funeral granddad. I hope you die before the mortgage runs out. Cheery no?! :grouphug:

ticktack_2

The_J wrote: »

It's your funeral granddad. I hope you die before the mortgage runs out. Cheery no?! :grouphug:

It doesn't run out. Sorry to disappoint.

The_J

Sorry, didn't see that it was the RHP. Unfortunately that renders your opinion on the subject null and void as it is completely different proposition to interest only available now.

I hope you live forever.

ticktack_2

The_J wrote: »

Sorry, didn't see that it was the RHP. Unfortunately that renders your opinion on the subject null and void as it is completely different proposition to interest only available now.

If I had expressed an opinion, which I didn't

I hope you live forever.

Au contraire, I have my Dignitas dose all ready for when I've had enough. But thanks for the wishes.