Mortgage for retired people

Eucharist1

I am 64 and retired. My wife is 56 and will be at work for another four years. We want to buy a second home in Norfolk, for around £250,000 and we have £100, 000 deposit. Any advice out there as to how we can get a mortgage for £150,000, please?:

Wh05apk

Almost impossible to say on the info provided, is your wife still working? do you have a mortgage currently? could the funds be raised against your current property? what are your long term plans, do you intend to own both outright, or sell one and repay the mortgage?

Eucharist1

My wife is still working. We have no mortgage. We want to keep both properties and, pay off half the mortgage in four years time when my wife retires.

seven-day-weekend

We are both in our mid-60s and have just taken out a BTL mortgage but it only lasts for nine years until my husband (the oldest) is 75. I suppose if you could afford the repayments in that short time then you could do the same, if they will lend on a residential mortgage.

Annisele

It partly depends on your income. If you and your wife will be living off state pension only, it won't be possible. If you both have pension income of £100k, it'll be easy. I suspect you're somewhere between those two extremes...

I think it'll probably come down to whether you can afford a term of ten years, on a repayment basis, on the income you'll have after your wife retires. Some lenders may be prepared to take into account your plan to pay off half the mortgage when your wife retires (presumably a pension lump sum?) and allow that bit on interest only - but I think you'd likely need a broker for that.

Eucharist1

Thanks, Annisele. The info from you is really helpful. The likelihood is that we will look for a cheaper cottage and actually borrow much less.

Bless you.

Wh05apk

Depending on your incomes, and your current property value, you may be able to remortgage on an interest only basis to raise the £150k required?