Best option for couple over 50

jenny_Jay

Hi,

Myself and my partner are in our early 50's. We own our home outright, worth around 900k,  so no mortgage but want to do a rather large renovation where we would need about 200k

My husband is on 70k a year and I foster children and get around 3k a month (fluctuates).

The option of moving is possible but we would need to upsize. But the preferable option is the renovation. 

So I wondered what the options are, just a mortgage? 

We are not at the age for equity release as I understand it.

Thank you.

MWT

jenny_Jay said:

We are not at the age for equity release as I understand it.

If the youngest life is still under 55 then ER isn't available for you, but even if it was it wouldn't necessarily be the best option.

A normal mortgage should be your first consideration, talk to a broker and see what they say...

jenny_Jay

MWT said:

jenny_Jay said:

We are not at the age for equity release as I understand it.

If the youngest life is still under 55 then ER isn't available for you, but even if it was it wouldn't necessarily be the best option.

A normal mortgage should be your first consideration, talk to a broker and see what they say...

Thank you.

If interest only mortgages are available, would that be an option?

MWT

jenny_Jay said:

MWT said:

jenny_Jay said:

We are not at the age for equity release as I understand it.

If the youngest life is still under 55 then ER isn't available for you, but even if it was it wouldn't necessarily be the best option.

A normal mortgage should be your first consideration, talk to a broker and see what they say...

Thank you.

If interest only mortgages are available, would that be an option?

There are a few hoops to jump through these days for interest only, although you do have a low LTV so that helps, but the salary may be a bit low for some lenders.

The main concern is always how you plan to repay the amount you have borrowed at the end of the term, down-sizing needs to be believable and you actually will need to plan to do it if that is your chosen vehicle.

Not impossible, but a lot harder than it was 20 years ago, talk to a broker and see what they say...

 

ACG

Would you not just want/need a conventional mortgage? 
Most lenders would be ok with the fostering income assuming you can evidence it for the last year or 2.

The rates would be lower than equity release but obviously it comes with the repayments. You could also look at interest only or part and part (part repayment, part interest only) if repayments are a problem.