Any chance of me getting a mortgage?

AnnieMags

I have absolutely no idea so I thought I would run this by you knowledgeable people on here.

I am 61 and in full-time employment. Due to a marriage separation and poor pension prospect I will need to continue to work for at least the next 10-15 years, health permitting. Luckily, I work for an organisation with no forced retirement age, so as long as I am willing and able, I have a job.

I am renting following the break-up, but getting increasingly worried about the future. Would it make more sense to continue in private rent or would I be better off owning in the long run? If so, what are the chances of me being able to get a mortgage? I have about £20,000 in savings to my name but earn only about £25,000 a year.

We are not divorced, not even 'officially' separated, just living apart. We are friendly and share 'dog custody' and neither feels any need to formalise the situation. Would this affect any possible mortgage application?

Thank you for any advice you might be able to give me - it will be much appreciated!

500pages

I imagine it may be useful to understand what kind of prices the properties you'd be looking at potentially purchasing are. Are you in London or the North East?

I believe lenders will only lend if the mortgage is expected to be paid off before a particular age - I have seen the age quoted as between 65 and 70, but even saw that one lender looked at 74 being an acceptable age at the end of the mortgage term. So based on that [very ill-informed and anecdotal evidence], it may be the case that you could get a mortgage if it were only for about ten years (as opposed to the typical 20-30 year timeframe).

Best thing to do would be to speak to a broker.

Another thing it may be useful to understand is whether you and your not-yet-ex-husband own a place together - if so, perhaps it'd be worth looking at exit routes from that.

But it sounds like you're thinking about much more than just a mortgage - it's about planning for your future, which may include looking at your pension arrangements etc. Perhaps worth seeking some more general independent financial advice, which would no doubt include looking at your separation.

Hope that helps.

AnnieMags

Thnak you for your very helpful reply! I am actually (almost) in the North East (S Yorkshire) so house prices would be in my favour. Having said that, you are of course quite right - the issue here is so much bigger than just owning or renting and needs the opinion of a financial advisor to look at the whole picture, not just accommodation.

The house we jointly owned was sold prior to our separating (at my husband's insistence, but that is another story) and we no longer have any finance in common. Although I don't particulary want to divorce, I think I need to take legal advice on that as well before I enter into any transactions that could be affected in the future by our staying married without actually being together.

Thank you again!

Best wishes
Annie

Thrugelmir

AnnieMags wrote: »

Although I don't particulary want to divorce, I think I need to take legal advice on that as well before I enter into any transactions that could be affected in the future by our staying married without actually being together.

Seek professional advice. Part of the divorce process is to have a Financial Consent Order ratified by the Courts. This in effect stops the parties laying claim to each assets in the future.

I will need to continue to work for at least the next 10-15 years

Age takes it toll. As much as you may wish. Set yourself realistic sensible objectives.

Armorica

Financial and possibly legal advice too - particularly if he has significantly better pension arrangements than you.

You should get a head start on researching the size of mortgage too e.g. are you looking for a three bedroom house, or a studio flat, do you need a garden/grounds because of the dog etc.?

You might want to explore critical illness insurance and other forms of employment insurance to provide more reassurance (the cost may be prohibitive though, unless provided via employer company policy) but worth looking into.