Later Life Mortgages, any experience?

Freyagirl

Due to splitting up with my partner I have to buy a new property, I don't have sufficient money to buy so am considering taking out an interest only mortgage for say 10-15 years with a view to downsizing or doing equity release at the end of the period (if I'm still alive). I am struggling to get any decent rates anyone any recommendations I am currently 66.

ACG

You are going to struggle with this.
Lenders in the main are not accepting equity release as an "exit strategy" to an interest only Mortgage.

Can you not get an equity release mortgage now?

Freyagirl

Think I'm too young at the minute, I know they don't like that as a strategy but I would say downsizing would be my option to the lenders with the idea of equity release in the back of my mind.

ACG

I think Equity Release is available from 55.

Freyagirl

Yes I know it is available but assuming an average lifespan I think the thought of that sort of amount rolling up would not sit comfortably with me hence the thought that if I could get an interest only mortgage until I am late seventies maybe eighty I could then cope with it.
I believe there are lenders that will offer what I want but it is such a big market and so far I haven't found one, and you don't seem able to get a quick answer they want you to go through a half hour conversation about your circumstances first when all I want to know is if they offer interest only and up until what age.

ACG

There are offset Mortgages that allow you to make payments, so it could effectively be treated as a repayment or an interest only Mortgage. I think rates start from around 4.5%

In terms of what you actually want, I only know of one lender but rates are around 6%.

Have you spoken to a broker? When I researched this it was around 6 months ago. There were no real options at the time (that I could find). If you are struggling to find something, it is usually because it is not mainstream and so a broker can pick up the phone to some of the resources we have on hand to try and find an answer.

enthusiasticsaver

You are going to struggle getting an interest only mortgage and very few lenders will lend past the age of 70. Are you still working?

Freyagirl

Thanks for that I'll have a look at the offset hadn't thought about that.

ACG

Freyagirl wrote: »

Thanks for that I'll have a look at the offset hadn't thought about that.

Sorry, I did not mean offset - I was researching someone elses Mortgage and had that stuck in my head. I meant equity release.

They work very much like a repayment/interest only mortgage (depending on how much you overpay) I have been told.

Forget offset, they are only good for a particular type of applicant which I do not think you fall in to.

Mortgage_Adviser

What is your employment situation, eg what is your occupation?
What do you earn?
What is the mortgage size that you require?
What is the property value?

Freyagirl

I am retired my gross income is in the region of 14k and I want to borrow around 30k against a property value of 320k. I don't own any other properties or have any other debts.
This article may be of interest but perhaps the relaxation in the rules is taking longer to filter through to lenders.

https://www.mortgagestrategy.co.uk/retirement-interest-only-mortgages/