Mortgage advice for a 52 year old.

LULULU1

I am 52 and my wife is 47. We currently have a First direct offset mortgage and owe £110,000.

I earn £43,000 and my wife earns £25,000 (both including some overtime). Both jobs are secure. I have a lump sum of £70,000 and my wife £12,000 when we reach 60. We also have additional voluntary contributions which we get at 60 and these amount to £15,000 for me and £10,000 to my wife currently (but will increase)

Our property is worth £180,000 so we have equity in it if £70,000.

We would like to increase our mortgage to £150,000 and take it over a term of 18 years until I am 70.

Is this possible.

Many thanks for any help.

amnblog

Yes it is, subject to full underwriting.

Thrugelmir

LULULU1 wrote: »

I have a lump sum of £70,000 and my wife £12,000 when we reach 60. We also have additional voluntary contributions which we get at 60 and these amount to £15,000 for me and £10,000 to my wife currently (but will increase)

Not actually clear what you intend to do when you reach 60. As this is some years short of state retirement age. Are you going to continue to work?

LULULU1

Hope to retire at 65.

i think we should have enough from lump sums and earnings to pay off our mortgage.

how much does our extra pension payments each month factor in any decision.

thanks

LU

dimbo61

I am also 52 and have recently applied for a mortgage.
Many lenders will only look at your Normal State Pension which for you is 67
So you will be looking at a 15 year term.

dimbo61

Use " Whatsthecost " to work out how much £150,000 would cost over 15 years at 4% as an example with 25% deposit.
Now your pension and Lump sum are for your retirement and not to pay off debts

LULULU1

Had a call from First Direct today.

Arranged a telephone interview and said based on info provided they might be prepared to lend a maximum of £138k

kidmugsy

Try National Counties BS.

Thrugelmir

dimbo61 wrote: »

Use " Whatsthecost " to work out how much £150,000 would cost over 15 years at 4% as an example with 25% deposit.
Now your pension and Lump sum are for your retirement and not to pay off debts

With a 15 year window. I would budget on rates being higher than 4%.

dimbo61

Thinking of a five year fix at 75% LTV but you are right and rates maybe 5/6/7% in 5/6 years time Who Knows ?

Thrugelmir

dimbo61 wrote: »

Thinking of a five year fix at 75% LTV but you are right and rates maybe 5/6/7% in 5/6 years time Who Knows ?

Even Carney is suggesting bank base of 3% in 2017. That's just 3 years........