Mortgage options when you are too old for a conventional mortgage?

Comstock

So I'm finally in a position to be able to pay a regular mortgage monthly, but it's likely to be a few years before I can save a deposit. By that point I won't quite be able to complete a 25 year term before I retire.

Does the following type of mortgage exist? Where you pay regular monthly payments until you reach retirement age, and then any outstanding mortgage is converted to an equity release plan, with the property returning to the building society on my death?

I don't have any children, so this would suit me just fine, but I wonder if such a mortgage option exists?

AnotherJoe

Why not just take out (say) a 30-35 year loan with the plan to do equity release at that time? No need to have it all tied together now.
Indeed no one would do it now because they won't know how much equity is in the house then.

Only issue would be if there's not enough equity then in which case you have to carry on working or sell up and rent

Thrugelmir

Comstock wrote: »

By that point I won't quite be able to complete a 25 year term before I retire.

Continue to save and borrow over a shorter time frame. If you don't already do so open a Help to Buy ISA.

Comstock

Definitely good advice about the help to buy ISA- is there a max age for that?

Why not just take out (say) a 30-35 year loan with the plan to do equity release at that time?

My concern is whether a bank or BS would loan on that vague basis?

Thrugelmir

Comstock wrote: »

Definitely good advice about the help to buy ISA- is there a max age for that?

No there isn't

Filo25

I was in the same position as well when I applied for my mortgage, if you aren't too tight on affordability the obvious option is just to cut the term of the mortgage a little, that's what I'm doing with mine.

Debtslayer

There are still options; just means you have to take a mortgage over a shorter term; i.e 20 years instead of the conventional 25. It will mean you have higher payments though so you would need to factor this in when you are looking at budgets and potential mortgage payments
Depends on your age and when you would be retiring

Comstock

OK, thanks.

You see, I don't have kids and neither does my sister so I really would have no one to leave the property to.

The only reason I'm looking at a mortgage is for security of tenure and the ability to make minor changes to the property. As far as I'm concerned when I trot off this mortal coil the bank or BS can have the lot.

I think I've spotted a niche in the market but it's probably too high a risk to be profitable to banks?