Mortgage Age Limits

qcvs2000

I am currently 41 and I am planning to sell my curent house at the age of 44 then TX the mortgage to a new house and ask for another 150K to upgrade. At that point I will be asking for a 20 year mortgage will banks be on line with that? i intend to use endownment and part of my pension lump sum to help me pay off the residual amount at the 10 year point

Is this a sound plan?

peachespeaches

I am sure someone who is qualified will give you a definite answer, but both myself and my partner are in our 40s and a while ago were offered a 25 year mortgage! Lets face it anything can happen in the next 15 or so years so you might not be working til youre 75!

qcvs2000

Cheers P2

I am new to the mrtgage game after a number of years in the military, any advice is well recieved.

I want a 20 year mortgage to keep the repayments down then using my pension and end to pay it off.

Concurrently I intend to keep dumping money into ISAs to back fill lump sum??

Does this make sense??

doitmyself

Wasn't there the story last week of the 102 year old taking out a 25 year mortgage? (Seriously). At 41 OP you've got no probs, not on account of age at least. Can't comment on your 'plan'...

qcvs2000

Cheers fellas, kind of hard to think of stuff like this when in Kandahar Province??

nikkiandmidgets

Hi cant offer profesional advice but my brother is in the army and retires in 3 years. he bought a house 18 months ago, put down 35000 that he saved up and has taken an interest only mortgage as he intends to pay the mortgage off when he retires after his 22 years service. The bank were happy enough with that and gave him a 5 year fixed rate which means his payments are low and manageable. Might be a route to consider if aailable to you? Nikki

JoeK_3

qcvs2000 wrote: »

Cheers P2

I am new to the mrtgage game after a number of years in the military, any advice is well recieved.

I want a 20 year mortgage to keep the repayments down then using my pension and end to pay it off.

Concurrently I intend to keep dumping money into ISAs to back fill lump sum??

Does this make sense??

There are lenders out there that offer mortgages with no restrictions on age and term.

If funds allow, you should overpay on you mortgage rather than save into an ISA as the returns from cash ISA's are always lower than mortgage interest rates.

JoeK

qcvs2000

I am currently 41 and I am planning to sell my curent house at the age of 44 then TX the mortgage to a new house and ask for another 150K to upgrade. At that point I will be asking for a 20 year mortgage will banks be on line with that? i intend to use endownment and part of my pension lump sum to help me pay off the residual amount at the 10 year point

Is this a sound plan?

What is trhe equation for paying a mortgage off early? is it as simple as divide the loan/mortgage by he number of month which will give the without interest repayment amount. If I have a 20 year mortgage and decide to pay it off at the 10 year point, do I simply pay off 10 years worth of repayments??

JoeK_3

It's not that simple as it all depends on the interest rate during the term.

This plan should be reviewed with the lenders co-operation on an annual basis.

You will need to ensure that the mortgage that you select allows you to overpay without penalising you and then on an annual basis speak to the lender regarding how much you need to overpay over the chosen term.

JoeK

qcvs2000

the current mortgage I have has 15 years to run, should I allow that to run its course and concurrently save in to ISA and high interest accounts to make up the differnce between the house I curently own and the one i would like to finally live in?

I will get a tax free lump sum on retirement (110K) and a good pension.

I had hoped to reduce my mortgage as rapidly as possible then remortgage and work hard to reduce the balance over ten years.??

Confused? so am I ?