Bradford and bingley

ds1980

Will be phoning then in morning and assume theyre not open for remortgages but m&d will pay mortgage off in 3 weeks. They still have an outstanding loan of about 20k and I'm wondering if they could remortgage as their rate is v low at present and they would only need it for say 5 years so think mortgage would be cheapest option for them. Failing that a new mortgage although I think the psychology of paying off their house may mean they don't want to go down this route but trying to explain the ins and outs is difficult! They are both retired and on incapacity benefit (dad) although have pensions etc. would they be able to get a mortgage at any rate?? Their property is probably worth in excess of 300k so ltv would be v low. Any help appreciated.

Thrugelmir

B&B ceased writing new mortgage business a few years back.

What are the terms of the loan they have?

ds1980

Thought as much. No idea tbh but assuming no further advances so new mortgage is possibly only option although not sure how viable as no 'income' and both 60+

ds1980

? Basically can they can a mortgage to pay off their loan given their age?

opinions4u

ds1980 wrote: »

? Basically can they can a mortgage to pay off their loan given their age?

Got to love Apple's predictive text!

ds1980

Ha. Can they get a mortgage at their age and status ?

kingstreet

Nowhere near enough information.

To repay £20k in 5 years, they'd need to be able to afford £370 a month from their incomes and we have no way of establishing if that is affordable.

The Halifax affordability calculator suggests you need to earn about £14,500 a year to be able to afford a £20k mortgage over 5 years. That's assuming 100% of basic annual gross salary. If there are benefits etc included, they may take only 60% of that, so even more income is needed.

Can only suggest they talk to lenders and see what's possible.

ds1980

Ta. No idea on income. Will get some detail but assume 14.5k is joint income and joint state pensions are nearly that so its not a question of affordabilty im after its whether lenders would allow pensioners a mortgage. They're paying the existing loan so nothings changed in that sense just trying to reduce the interest they are paying on it but as its over 15k different loans aren't much different in their rate so a mortgage would be their best bet afaics