Declined Equity Release

Fender1978

Good afternoon all,
My wife and I are 70 & 68 years old respectively and both retired. Our current predicament is that our mortgage term ended earlier this year leaving us with a £60,000 shortfall and we had decided long ago that we would go the equity release route to pay the shortfall off and a little extra for home improvements, etc. I must add that we really do not want to sell up and can not downsize any further.
We have an independent financial advisor working on our behalf in the search for a lender and so far he has not had any luck due to the fact that our house is next door to a commercial property (heating & cooling service company). 

Lenders are citing the saleability risk as the reason for declining. This applies to equity release, lifetime and RIO mortgages. We are running out of options and our mortgage provider can only offer us a 5 year repayment mortgage which we would be unable to afford the monthly payments on that one. 

So, now I’m thinking a 10 year repayment would probably be affordable for us but could we get one at the ages we are at and would the saleability factor still be a problem for lenders? Or are there other suitable lending options that we are not aware of yet?
We have 4 pensions between us, including State, armed forces and company, so continuing to make monthly repayments to a lender was something that we had long accepted for the position we are in.
All and any advice anyone has for us will be gratefully received. Thank you in advance.

ACG

If your income is enough from pensions, a 10 year mortgage should be doable - normal affordbailty checks would apply. 

But the property next door would remain an issue regardless of the type of mortgage. That being said, one lender declining to lend on your home does not mean they all will. 

silvercar

Your current lender may be more agreeable, given that they were happy to lend to you initially.

kingstreet

We recently placed an unusual construction type on interest-only with LiveMore after a decline for an interest roll-up product with L&G. Suggest your IFA speaks to his LiveMore BDM.