To pay off or not? Will need to borrow in the future.

Muldoan

I have the savings to pay off the last of my mortgage when my low-interest 5-year deal comes to an end. However, my girlfriend and I plan to sell our respective flats and buy somewhere together. She has suggested that due to my advanced age (mid 50s), it may be sensible to keep the mortgage to port to the new place, as I may find it difficult to borrow again. I reckon I'd need to borrow around £40k (the size of my current mortgage) to be in the ballpark for what we want. I'm in full-time employment and have a good credit rating. Is this a valid concern or should I go ahead and get mortgage free, at least temporarily.

gwynlas

It would be quite straightforward to have mortgage to SPA or 70 so 15-20 years but the amount you wish to borrow might be unattractive to lenders. You probably need to discuss with a mortgage broker. Do not forget legalities such as deeds of trust and wills.

saajan_12

Muldoan said:

I have the savings to pay off the last of my mortgage when my low-interest 5-year deal comes to an end. However, my girlfriend and I plan to sell our respective flats and buy somewhere together. She has suggested that due to my advanced age (mid 50s), it may be sensible to keep the mortgage to port to the new place, as I may find it difficult to borrow again. I reckon I'd need to borrow around £40k (the size of my current mortgage) to be in the ballpark for what we want. I'm in full-time employment and have a good credit rating. Is this a valid concern or should I go ahead and get mortgage free, at least temporarily.

* How long is the overall mortgage term? At this age, I expect the max term to start reducing, but you should still get 15-20 years of mortgage, which is probably similar to what's left on your existing mortgage. 
* How is your current affordability from your employment etc?
* What interest do you (could you) get on savings? Net of tax if you earn enough interest to pay tax here and you've already exhausted isas. 
* What is the SVR rate on your current mortgage? 

Muldoan

saajan_12 said:

* How long is the overall mortgage term? At this age, I expect the max term to start reducing, but you should still get 15-20 years of mortgage, which is probably similar to what's left on your existing mortgage. 

* How is your current affordability from your employment etc?
* What interest do you (could you) get on savings? Net of tax if you earn enough interest to pay tax here and you've already exhausted isas. 
* What is the SVR rate on your current mortgage? 

Hi, the overall mortgage term was 22 years in 2013, so 12 years to run. My flat was recently valued at £200k. It's comfortably affordable for me. I could pay more without having to make any big lifestyle changes. I don't have a savings account at the moment - my ISA provider closed and savings were transferred to my current account. 

Muldoan

Thanks for the replies. I think I'll get some proper advice as sugested.