Mortgage for fostering

Thrugelmir

Peaky wrote: »

If we got an interest-only mortgage, then we'd repay using some combination of overpayments, savings, pension lump sum, and inheritance. Or if we couldn't, we'd downsize;

Lenders rules have tightened somewhat. Downsizing and inheritance are not options. Pension pot will need to be sizable in order to fund a significant cash free sum. Overpayments and savings (cash I assume) are no better than being on a repayment mortgage.

We're not concerned about adding value

A mortgage lender will. As has already been said value may well be diminished.

Peaky

Thrugelmir wrote: »

Lenders rules have tightened somewhat. Downsizing and inheritance are not options. Pension pot will need to be sizable in order to fund a significant cash free sum. Overpayments and savings (cash I assume) are no better than being on a repayment mortgage.

My latest projection, as it happens, would give a ~£125k lump sum in cash terms, based on current contribution levels and 5% growth. 35 years' inflation helps, in this case. But presumably lenders are only interested in money that's already in a pension pot, if they look at pensions at all.

Thrugelmir wrote: »

A mortgage lender will. As has already been said value may well be diminished.

This does surprise me. I can see that they would want to assess the application based on the new value of the combined properties, rather than the combined value of the separate properties, but it surprises me that they would refuse a mortgage for this sort of reason.