Mortgage as bridge to pension

Hi all,
Situation coming up: I will be 55, unemployed, £400k house owned outright, no other savings. I can take a pension lump sum of £150k at age 58 and live off reduced pension thereafter.


I would like to take out a £100k mortgage and use this money to live off for 3-4 years to tide me over until pension age, I would pay the mortgage interest out of this money. Then I will use the pension lump sum to repay the mortgage.


Is this normal/possible/acceptable/legal? What should I be aware of?

Replies

  • kingstreetkingstreet Forumite
    37.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    How will you demonstrate affordability for the mortgage?

    Seems like you want a 2006 interest-only self-certification mortgage?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblogamnblog Forumite
    12.1K Posts
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Forumite
    There may be a way to satisfy your needs with a specialist lending option.

    Consult a canny broker.

    Otherwise you could get a 100 'no's' by searching around.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 in bonus points

MSE News

Ask an Expert: Scams

Watch MSE Katie's answers to your questions

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals