Older mortage applicant?

Money_saving_maniac

I have a very good credit record and my OH not so good (nothing serious but some missed payments in last couple of years and now he has available credit on cards but no balances so could be an issue, as all bills are in my name). He is not on my current mortgage.

However I am 56 and OH is 39.
I was made redundant in June but have a new job to start on Jan 4th.

OH earns 25k and my new job will pay the same. Obviously I understand I will need to wait until at least early April so I have 3 payslips when I will be 57

I have 28k in savings at the mo.

I hate where we live and want to move. Our house is worth about 150k and there is 32k left on mortgage. Our ideal house would be in the 220k bracket.

In the most perfect world I would do the mortgage just on my own but if needed we could use both salaries.

Is there any hope of getting a mortgage that will meet affordabiity criteria given my state retirement age is 66 and the loan period would only be 9 years?

I guess nobody will lend up to 70 given only a state pension, that would be better for me though?

I'm in a panic because really we should have moved a year or two ago, somehow one forgets one is getting older.

Any thoughts help or advice appreciated.

Thrugelmir

You need to think outside the box so to speak. As the gap you are trying to bridge isn't vast if you focus all your endeavours on it for a period of time.

What rate of interest do you pay on your mortgage currently? Depending upon the amount you are earning on your savings. Maybe worth overpaying.

Money_saving_maniac

I have been overpaying the mortgage for a good few years now, hence the 32k left on the mortgage. This mortgage was a 25 yr, due to end with me aged 70 IIRC. When I remortgaged last time I reduced the term slightly.

Originally I was going to use the savings to pay the mortgage off entirely in the next year or two with a view to moving at some point.. But with all the convulsions the mortgage market has been through, I've suddenly realised that it needs to be asap.

Current mortgage is 2 years through a 5 year fix, portable with RBS (depends if I meet criteria now though ofc!) and I think its 3.19%

Is my house dream achievable or am I fooling myself?

Thrugelmir

Money_saving_maniac wrote: »

Is my house dream achievable or am I fooling myself?

If both you and your partner share the same dream then why not?

Money_saving_maniac

Hi Thruglemir, it's not about whether my partner and I share the same dream


My question - is it achievable in terms of what a lender will do.

Possibly I have not made myself clear.

I am 56. I will want to borrow around 70k on a salary of 25k, or potentially if I include my OH's salary, then 50k.

Because i am 56, and will be 57 when I could make the transaction, my current understanding is that nobody will touch me with a bargepole because they only want to lend to younger people.

Q1) So can i find a lender who will lend me 70k on stated salary over 9 years to my 66th birthday?
Q2 Even better, lend 70k on stated salary over 13 years to my 70th birthday?

And which lenders are more likely to be interested?

Money_saving_maniac

Any help with my questions from anyone, please?

amnblog

Terms to age 70 are common depending on your occupation.

Age is not your only complication here. Your gap in employment does not help.

A case that sounds manageable, but only via a competent broker.

Money_saving_maniac

Thanks amnblog, any tips on finding a good broker, when I bought this house the mortgage was arranged via an estate agent? Excuse my ignorance but I know nothing and have nobody to ask

Ideally I would want a 10 year fix so I have the security of knowing what the payment will always be.

amnblog

Personal recommendation is normally the best way to find someone you can rely on.

Websites like unbiased.co.uk used to be a good source of local help but I understand their business model has changed so that you cannot contact all the brokers listed on their site.

Money_saving_maniac

Ok thanks very much indeed for your help