Mortgage Borrowing - Semi-retirement and beyond

RetSol

I am starting this thread partly to get some help myself and partly in the hope that others will be willing to pool their experiences of mortgage borrowing in retirement.  I have suggested to the Forum that they set up a sub-Board on this subject as I think that it may be a growth area. 

A bit about my own circumstances.  I recently embarked on semi-retirement (taking a db pension early) and I still have an interest-only mortgage. 

I have savings and investments and I am mortgage neutral but I don't want to pay off the mortgage now, partly because the interest rate is very low.  The mortgage matures in three years time when I will be 60 and then I will be looking to remortgage.  The LTV is c. 15%.  I am single and have no dependents. 

I am hoping that the low LTV, mortgage neutrality and a sufficient db pension income will enable me to remortgage on an interest-only basis (perhaps with an offset arrangement), at least until aged 67 (SPA), if not beyond.  I am self-employed and propose to remain so beyond SPA. I have a modest income from self-employment but I am not intending to rely on that for re-mortgage application purposes. 

Have you re-mortgaged in similar circumstances to mine?  Or are you intending to?  What was your experience? 

Do you have any recommendations for lenders or brokers who are happy to work with retired borrowers? 

Are there any pitfalls or hurdles which I may have overlooked? 

K_S

@retsol If your current DB pension is sufficient to meet affordablity (as per lender calcs) and you can evidence the repayment vehicle, based on the limited info in your post, I don't see any evident issues with your requirements.

dimbo61

Interest only and offset.
Only one lender comes to mind and they now have poor rates for Offset mortgages.
Firstdirect

Thrugelmir

Interest rates rise, value of investments fall,  your employment income is reduced. Many variables and curved balls lie ahead in the next decade. A plan to clear the mortgage at least provides certainty. 

RetSol

If your current DB pension is sufficient to meet affordablity (as per lender calcs) and you can evidence the repayment vehicle, based on the limited info in your post, I don't see any evident issues with your requirements.

Good to hear, thank you. 

RetSol

Only one lender comes to mind and they now have poor rates for Offset mortgages. 

I think that Coventry BS and Scottish Widows are also possibilities atm although I have not researched the market in detail yet as I am not proposing to action my plan for a bit. 

RetSol

Interest rates rise, value of investments fall,  your employment income is reduced. Many variables and curved balls lie ahead in the next decade. A plan to clear the mortgage at least provides certainty. 

For peace of mind, it's vital to have contingency plans and flexibility, I agree.