2 older applicants - best mortgage provider?

sleepymans

OH and I need a short term mortgage.

Me 60 yrs pension £10k
OH 64 yrs with permanent job with salary 21k

We need £60k mortgage which we will repay in full within about the next year by the proceeds from a inherited house being sold (That should be around £225k). Have we got a hope in hell?

LTV is about 33% and we would prefer to pay only the interest until it will be repaid.

Any advice welcome.
Thanks

Thrugelmir

Unlikely you'll be granted an interest only mortgage on the basis of a future inheritance.

Does your OH have a good pension provision?

sleepymans

Thrugelmir wrote: »

Unlikely you'll be granted an interest only mortgage on the basis of a future inheritance.

Does your OH have a good pension provision?

Well, its not a future inheritance as such, its an existing inheritance, part of which comprises a house being sold for c £225k.


OH would be entitled to state pension (full basic plus about £45 pw earnings related) from next year but intends to work on and defer the pension until some time after the mortgage will be repaid in full.


His only private pension is tiny but the balance of his inheritance (225k less £60k mortgage repayment) should allow for an income in retirement in due course.

amnblog

You should be able to get this lending - but perhaps not on the terms you might expect.

You need to get yourself some 1to1 advice.

sleepymans

Decided to suck the lot of them and get an Aviva Lifetime mortgage.....sooooo looking forward to moving all our investments AWAY from Nationwide!

kidmugsy

sleepymans wrote: »

OH would be entitled to state pension (full basic plus about £45 pw earnings related) from next year but intends to work on and defer the pension until some time after the mortgage will be repaid in full.

Deferring his state pension is an excellent investment. Common advice is that for men in good health a deferral of 3 years is about best. In that case, when he starts it it'll be 31% bigger than it would otherwise be, and he presumably will get it all tax-free.

kidmugsy

kidmugsy wrote: »

Deferring his state pension is an excellent investment. Common advice is that for men in good health a deferral of 3 years is about best. In that case, when he starts it it'll be 31% bigger than it would otherwise be, and he presumably will get it all tax-free.

P.S. if there is a chance that there will be a sizeable gap between his finishing earning, and his taking the state pension, he could withdraw money tax-free from a private pension. So he might like to contribute part of his capital to one while he's still got earnings to justify the contribution. There's lots of discussion of this sort of investment on the Pensions etc forum.

Let_Us_See

sleepymans wrote: »

Decided to suck the lot of them and get an Aviva Lifetime mortgage.....

Do not go down the Aviva lifetime mortgage route. Whilst it may look an attractive, easy option to obtain the necessary funding, an INTEREST ONLY lifetime mortgage (there is a difference) should be more suitable in your circumstances, especially if you intend to redeem the mortgage at a future date.

If you took advice on a lifetime mortgage, and the interest only option was not discussed or offered, then find yourself another adviser.

kidmugsy

sleepymans wrote: »

OH and I need a short term mortgage.

A lifetime mortgage seems an unlikely way to fill the need for a short-term loan.

Let_Us_See

Possibly because you are unaware of the options available?

sleepymans

The Aviva lifetime mortgage allows 10% repayments after yr 1 annualy.
As we cannot be certain of the dates of both OH retirement or OH inheritance then this seems the best option.
We have no dependents or close family t inherit and so we always intended to get an equity release/lifetime mortgage in any case.

Dont want to leave distant relatives our hard earned assets when we die.