Mortgages extending into retirement

Durhamdad

Hello everyone, I'm looking for some advice.

Unfortunately I am currently going through a painful yet reasonably amicable divorce after 203 years marriage. We are agreeing to share everything 50/50 when we sell our home. Will will probably end up with about 40K each from the sale of the family home. 

However, and this is the advice I am looking for, I am aged 52 and am struggling to get an affordable mortgage offer because the lenders I have spoken to will only take the term to retirement age, 67 for me, which is 15 years. 

For me to buy a three bedroom home (we have to school aged children that we will share caring responsibilities for) a 40 k deposit still leaves me needing a mortgage of about 140K to get anything of a reasonable standard that doesn't require a load of work. 

So, two things, I would like to work after the age of 67 as I have a non manual professional job that I will be physically able to do so will this be taken into account with any lenders? 

Also, as a Civil Servant I have a reasonable pension that will give me an income of circa 25K pa with a 100k lump sum if I wanted it, would this sort of thing be taken into account by any lenders?

Any help or advice will be appreciated, anyone know of any lenders who will look beyond normal retirement age? 

kingstreet

There are lenders who will lend to 75, even 80.

Speak to a recommended broker who will identify the options and get the best rates from them.

K_S

@Durhamdad With respect to lending up-to and into retirement based on current income only, lenders fall into a few categories, each will have their own set of policies on this -

1. Max term up to lower of retirement age or 70
2. Max term up to lower of retirement age or 75
3. Max term up to lower of retirement age or 80
4. Max retirement age of 70, term up to 75 based on evidence of current pension contributions (pension projections don't matter, just deductions on payslip will suffice)
5. Other variations on the above.

There are criteria to the above - plausibility, current age, how far from retirement, etc. etc. but on the whole there is quite a bit of flexibility when it comes to how far a term can be stretched for a 52 year old in a desk based job so you should have options if it's just the length of term that's causing issues. 

Good luck, I hope you get the mortgage you need!

Durhamdad said:

Hello everyone, I'm looking for some advice.

Unfortunately I am currently going through a painful yet reasonably amicable divorce after 203 years marriage. We are agreeing to share everything 50/50 when we sell our home. Will will probably end up with about 40K each from the sale of the family home. 

However, and this is the advice I am looking for, I am aged 52 and am struggling to get an affordable mortgage offer because the lenders I have spoken to will only take the term to retirement age, 67 for me, which is 15 years. 

For me to buy a three bedroom home (we have to school aged children that we will share caring responsibilities for) a 40 k deposit still leaves me needing a mortgage of about 140K to get anything of a reasonable standard that doesn't require a load of work. 

So, two things, I would like to work after the age of 67 as I have a non manual professional job that I will be physically able to do so will this be taken into account with any lenders? 

Also, as a Civil Servant I have a reasonable pension that will give me an income of circa 25K pa with a 100k lump sum if I wanted it, would this sort of thing be taken into account by any lenders?

Any help or advice will be appreciated, anyone know of any lenders who will look beyond normal retirement age?