Mortgage and retirement help please

tinadev

Hi my 2yr fixed rate with Santander is due to end in August and I am looking to remortgage. We currently owe £197000 and both my husband and I are 54. My husband can retire sept 23 and potentially receive £125000 lump sum and I can release £13000 in August 23. My question is do I extend my mortgage term to 25 yrs when I remortgage to get a lower monthly payment knowing that in 18 months we can pay off over half of the outstanding balance or should I stick with 20 years which is what it is now. Sorry if this seems a daft question but I’m really confusing myself. My husband will continue to work after sept 23 so will still have a monthly wage and pension as will I if that makes a difference to anything. Thank you in advance 

Thrugelmir

Will your mortgage lender allow you to extend the mortgage term until you are 79? 

Is your current mortgage on an interest only basis? As this greatly restricts your options. 

tinadev

No it’s a repayment mortgage and I did put in my date of birth when I used the comparison tool so I would hope the answers reflect this. My current lenders deals are higher than those I found on the tool so I would look to move lenders 

Admiral_Barbarossa

Using your lump sum will still leave you about £60,000 short. With one retiring, how are you going to fund this going forward, as no lender will let you mortgage until you are 80!

tinadev

I anticipate both my husband and I will work until we are at least 65 with both bringing a decent wage plus pensions 

simon_or

J_Wilko said:

i found this, it might be helpful

There you go again, hawking your website. As per the forum rules, as a mortgage broking business you shouldn't be using the forum for advertising. I've reported your posts for advertising.

Thrugelmir

@simon_or

Delete the link from your quote. 

dimbo61

IF you take the Lump sums when you both turn 55 next August/September you can indeed pay off a lump sum IF your not tied into a New fixed rate deal.
Have you checked with your lender if they have tracker deals with NO ERC,s 
However if you then take your pension each month you can no longer put more than £4,000 each a year into a Pension.
Would the pensions you will take be with your existing employer ?
Can you overpay each month now as your both still working ?