Mortgage - sort of ?

chaka1970s

Hi, wonder if anyone can give me some advice. I have some money to buy a house I have been looking at, however, I wanted to know as I am older I dont think I would get a long mortgage, its a cheap house and needs a bit of work doing like new windows & decoration etc. Is there any way I could get a mortgage with the money as collateral not being used or would it have to be a loan, if I did not use my lump sum to buy the property outright? Thanks

Caz3121

a mortgage is based on your income and affordability.
Loans can usually not be used for property purchase so would be a case of using savings for purchase and maybe loan for windows/decoration etc (loans would also be based on your income and affordability)

Emmia

Do you have the money to buy the property outright, or to pay for most of it

Mortgages don't have to last for 25 years, you can have shorter terms, (although the payments are higher each month as a result) whether that's viable will depend a bit on the amount you want to borrow, and the term.

What about an offset mortgage?

Strummer22

Assuming you meet affordability criteria etc you can get a mortgage. 

As an example, let's assume you have £100k saved, want to buy a house for £90k, and do £30k worth of work to it.

You could get a mortgage for £30k and use £60k of your savings as your deposit to complete the purchase. That would leave you £40k of cash to do the work - plenty for the £30k estimated cost with £10k for emergencies and contingency.   

jlfrs01

I recently got a 25 year mortgage at age 55 so unless you've no income stream for a lender to take into account then age should be no barrier.

chaka1970s

jlfrs01 said:

I recently got a 25 year mortgage at age 55 so unless you've no income stream for a lender to take into account then age should be no barrier.

Yes, I dont have an income stream, also 62.

CSI_Yorkshire

chaka1970s said:

jlfrs01 said:

I recently got a 25 year mortgage at age 55 so unless you've no income stream for a lender to take into account then age should be no barrier.

Yes, I dont have an income stream, also 62.

If you have no income, how would you pay any mortgage or loan anyway?

kingstreet

chaka1970s said:

Hi, wonder if anyone can give me some advice. I have some money to buy a house I have been looking at, however, I wanted to know as I am older I dont think I would get a long mortgage, its a cheap house and needs a bit of work doing like new windows & decoration etc. Is there any way I could get a mortgage with the money as collateral not being used or would it have to be a loan, if I did not use my lump sum to buy the property outright? Thanks

For what do you intend to use this property? Main residence? Letting? Flipping on completion of basic refurb?

chaka1970s

Emmia said:

Do you have the money to buy the property outright, or to pay for most of it

Mortgages don't have to last for 25 years, you can have shorter terms, (although the payments are higher each month as a result) whether that's viable will depend a bit on the amount you want to borrow, and the term.

What about an offset mortgage?

I am not employed I am now 62 soon to be 63. How do they work ?

chaka1970s

kingstreet said:

chaka1970s said:

Hi, wonder if anyone can give me some advice. I have some money to buy a house I have been looking at, however, I wanted to know as I am older I dont think I would get a long mortgage, its a cheap house and needs a bit of work doing like new windows & decoration etc. Is there any way I could get a mortgage with the money as collateral not being used or would it have to be a loan, if I did not use my lump sum to buy the property outright? Thanks

For what do you intend to use this property? Main residence? Letting? Flipping on completion of basic refurb?

Main residence, thank you. 

kingstreet

In which case a residential mortgage is going to depend on you having a verifiable income to demonstrate affordability for the amount you need to borrow.