Mortgage options at age 55 for up-sizing property

andysa1966

Hi, Im age 55 in November and in full time work, Im married, my wife is 39 and looks after our two young children full time, age 2 and 6. Our home is owned out right, no current mortgage, I have an amount I can claim from my pension fund also in November. Current property value is say 200k, I might be able to get 30k from my pension, what mortgage options are available if we wanted to borrow say 70k to enable us to buy 300k property?

NiaBrown

Hi - we're just buying our first home aged 50(me) and 58 (husband) respectively - there are lenders out there who will lend, certainly, but you usually have to provide proof that you'll have a private pension income post-retirement (ie not just a state pension). For example, we're going 85% LTV over 15 years with TSB and husband had to give a statement from his pension provider to show what annual income he'll get from it when he retires at 68.

Also on this note, beware of the big brokers - we initially went with Habito and they told us we'd have to pay the mortgage off within 10 years as there was no way anyone would lend us anything beyond husband's retirement - a lovely local broker soon put us straight on that nonsense

Good luck!

princeofpounds

You can get a mortgage. They may insist on understanding your retirement provision, and they will probably insist on a shorter repayment period than the typical 25 years, so the monthly payments may be high relative to the amount you are borrowing (bear in mind that this is mostly 'saving', it's not an interest cost). Go get a proper mortgage broker and they will walk you through this.