Mortgage for over 60s

DutchJude

We, couple aged 60 & 56 have lived abroad for 30 years & wish to return to our roots. We have a house to sell but need about another 30,000 in order to buy a home on our return. I am wary of equity release schemes on the basis that if something seems to good to be true it probably is. Can anyone advise whether a mortgage at our age is possible & how & where we should go for this? Things have changed so much in 30 years. I used to be a building society manager but now wouldn't have clue. Thx in advance.

holly_hobby

After such a long time out of the UK, you will initially struggle to obtain a mge due to an absence of credit/residency history (as I assume your house in the uk is mge free ?).

Ideally most lenders will need you to have proof of UK residency and a UK credit history for a least 6 mths - plus of course your income (presume pension ?) will need to be acceptable and sufficient to support any mge borrowings, with a max term tailored to the lenders max age (which is typically 75 yrs, but there are a few lenders whom will exceed this age - again all based on income during the term).

Lifetime equity release mges (rolled up interest) have a min age of 55, whilst Home Reversion schemes (% equity share held by the lender) have a min age of 65 - and whilst each can be used to pch a property, evidently the overall LTV needs to be low to make it worthwhile to the lender, and although not income based, suitability is evaluated on age and ltv - the younger you are the lower the amount released or mge offered.

Lifetime mges have a place, if correctly evaluated and assessed to the individual(s). The main issue is the effect on the estate (and hopeful beneficiaries) of the mortgagor, from the erosion of free equity, evidenced over time in respect of the roll up of interest. If this is a concern, and notwithstanding seeking a no-negative equity gte lender, there is at least one provider whom permits the payment of monthly interest to effectively ringfence the free equity (if so desired).

You need to sound this with an experienced broker, and if a lifetime mge is required, a qualified Lifetime Mge Adviser - but I would anticipate there will be initial residency/credit issues due to your 30 yr uk absence (at least in respect of a standard residential mge) - which of course may be managed by building this on your return to the UK and before purchasing.

Hope this helps

Holly x