Mortgage at 53

grayson

I am separating from my partner and we have paid off our mortgage. I would like to buy another house with the money I make off the sale of our current house.

I would get about 90,000 at current value.
However, I only have a small private pension only started it 2 years ago. And my salary is 22,000 yearly.

 I have tried some online mortgage calculators and the most they will lend me is 30,000 some have said 24,000 that's with a £90,000 deposit. 
This is based on me retiring at 67. If I lie about when I want to retire, say 75 I get a larger amount. What issue may arise if I got the higher loan if I said I will retire in my 70s? Even though I have no intention? 

Windofchange

Your house gets repossessed when you can’t afford the payments? Aside from lying on a mortgage application have at it I guess. 

RelievedSheff

Paying the mortgage would be the biggest issue!!

BarelySentientAI

Windofchange said:

Aside from lying on a mortgage application 

Which is, of cause, fraud.

horsewithnoname

grayson said:

I am separating from my partner and we have paid off our mortgage. I would like to buy another house with the money I make off the sale of our current house.

I would get about 90,000 at current value.
However, I only have a small private pension only started it 2 years ago. And my salary is 22,000 yearly.

 I have tried some online mortgage calculators and the most they will lend me is 30,000 some have said 24,000 that's with a £90,000 deposit. 
This is based on me retiring at 67. If I lie about when I want to retire, say 75 I get a larger amount. What issue may arise if I got the higher loan if I said I will retire in my 70s? Even though I have no intention? 

Plans change. Just cos you plan to retire at one age, doesn’t mean that it won’t change in the future? No one can prove otherwise I imagine?

BarelySentientAI

horsewithnoname said:

grayson said:

I am separating from my partner and we have paid off our mortgage. I would like to buy another house with the money I make off the sale of our current house.

I would get about 90,000 at current value.
However, I only have a small private pension only started it 2 years ago. And my salary is 22,000 yearly.

 I have tried some online mortgage calculators and the most they will lend me is 30,000 some have said 24,000 that's with a £90,000 deposit. 
This is based on me retiring at 67. If I lie about when I want to retire, say 75 I get a larger amount. What issue may arise if I got the higher loan if I said I will retire in my 70s? Even though I have no intention? 

Plans change. Just cos you plan to retire at one age, doesn’t mean that it won’t change in the future? No one can prove otherwise I imagine?

Posting on a public forum that you are considering whether or not to lie on the application might go some way towards that.

amnblog

Many mainstream lenders will run mortgages to age 70. Some will allow you to run to 75. They wont be keen if you do physical work like construction.

AliceBanned

You may have to work to 75 to repay the mortgage? You might work part time for some of it?. Or later decide to downsize. I don't think 'intention' is binding or set in stone. Mortgage brokers have always been happy with me adding a late retirement age as I bought property late in life. Ideally I wouldn't work until 75 but I am having to consider it. I don't think it's a problem saying this, as it is to guide them on affordability but as others have said, you could be repossessed if you aren't able to work to that age and still have the mortgage. I have  been trying to overpay mine so that I won't need it or will be able to pay the remainder with my pension but then I do have a reasonable pension due to me (though not massive).

Altior

I agree, it's a stated intention, not a commitment in stone. Nobody can guarantee they'll definitely be in full time work until a stated age.

What is more significant is how much the OP's intending to borrow, and the exit strategy at the time of stopping work.

With a modest salary and negligible private pension at age 53, I'd strongly recommend judging this within the bigger picture of financial planning. More than likely they will be better off getting a mortgage than renting, as these will be likely be very low repayments. But once a new home/mortgage is secured, it needs 100% commitment to saving for retirement goals in my view (once they have emergency fund in place). 

Jami74

I'm getting a twenty year mortgage until age 70. Currently have no intention to still be working full time at 70, although that of course may change and obviously I will if necessary. I have a plan to overpay mortgage and/or put as much in pension/ISAs as I can (depending on rates) over the next 10-15 years so that either the mortgage is paid off or I'll have enough pension to afford the repayments. 

NorthernKitty

I got my mortgage aged 47 and the only mortgage lender (via broker, had bankruptcy in background 8 years previously due to ex) who would give me a mortgage would only give me a 19 year one. I'm aiming to use a lump sum of my company pension to pay a chunk off if I haven't managed to do as many overpayments as I would like beforehand as a backup plan.