Armed Forces Finite age mortgage problem

thecyclingqueen

I have just applied for a mortgage (moving home) and as I am a member of the Armed Forces I have a finite employment age of 55. When asked of my employment I told them I would leave the service @ 55 (presently NEM may change that) and that I may or may not work after that. they asked me for my pension details which is an estimate and confirmed they would only give me a mortgage based on my long term salary which is my pension, maximum loan of 69,000 over 15 years. I have had to reduce my term to 8 years 9 months to borrow 90,000 and this has more than doubled my monthly payment.
I am 46, earn 45,000 pa in a secure job never had credit issues, have no more borrowings, it's truly unbelievable the 2 hour phonecall I have been subjected too!
Anyone else suffering from a finite employment age?

Thrugelmir

Lenders can only base decisions on information as it stands today.

kingstreet

Presumably you went direct to a lender?

I suspect a broker would have done this case and used state pension age, 67 and this would not have been a problem.

No-one can guarantee they will remain in the same job until they retire, so there's no reason it should be assumed you will either.

betmunch

you may or may not work after you leave the forces.

If you had a mortgage to pay would you continue working or just stop?

thecyclingqueen

I would work if I had too, or if I was bored I guess? They havent taken into account my pension lump sum which is 70k or an endownment I have, finishes in 2016 @ 60k????

thecyclingqueen

I went direct to my lender I am currently with! I wanted offset as I have additional 60k to offset the costs@4% making it a cheaper way to borrow without a set up fee!

kingstreet

thecyclingqueen wrote: »

I would work if I had too, or if I was bored I guess? They havent taken into account my pension lump sum which is 70k or an endownment I have, finishes in 2016 @ 60k????

They will not take into account things which can be changed and which do not have to be used for the purpose you are telling them they may be used for.

Many lenders don't offer interest only, so your endowment policy can't be taken into account as part of the security.

Speak to an independent mortgage broker and get proper advice and a route to follow to getting what you want. There are more offset products than the one offered by the lender who is asking you to jump through hoops.

Mortgage_Mark_2

Sorry, replied to your comment in the other thread before seeing this.

Agreed with Kingstreet - you need to use a broker. Going direct to a lender, even you can admit that the facts stack up to exactly what you've been 'offered'; i.e. you are going to retire in just under 9yrs, so you can either have a mortgage than finishes before retirement or you can take a longer mortgage and prove your income after you're retired.

Logical surely?

betmunch

thecyclingqueen wrote: »

I would work if I had too, or if I was bored I guess?

You need to be a bit more certain of what you will do.

From this I cant be certain if your going to keep working so I wouldnt give you my money, so why should a bank?

thecyclingqueen

betmunch wrote: »

You need to be a bit more certain of what you will do.

From this I cant be certain if your going to keep working so I wouldnt give you my money, so why should a bank?

But it is not taking into account the 9 years of 45,000 income, only my 20,000 pension @ 15 years? Not logical!

thecyclingqueen

Ok lots of mortgage advisors - so if I were employed say by British Aerospace with a permanent position @ 45,000pa with no guarantee of not being made redundant, would you lend me 90,000?