Mortgages for the retired

Nanucleo

My wife and I are looking to purchase our final and forever home. We are both recently retired with a guaranteed income from state and private pensions (index-linked)of £55,000.

We have an interest only mortgage at present of £68,000 and the t equity in our current home is £200,000. Our plan was to purchase the property, live there for 5 years then equity release.

We found a house we wished to purchase for £420,000 but when we tried to borrow the £220,000 interest only, 5 year fixed, to purchase the property we were informed that our choices were limited and the only one available was at 6.75 % interest which put the monthly payments beyond our reach.

Why are our choices so limited and why do we have to pay such high interest rates?
Our income is guaranteed and inflation proof, so why are we such a risk?

Keep_pedalling

If one of you died would the survivor be able to keep up the payments?

How have you managed to get to this point without paying off your mortgage or have significant savings in place? You must have been earning a decent amount of money to have the level of retirement income you have.