When could we apply, and with who?

smallblueplanet

We are looking to move next year, and when we start the process might depend on two things. When we could get a MIP (is that what they're called? - we last applied for a mortgage over 20 years ago!) and whether we decide to wait for a new build coming on to the market later next year.

In early January 2026 my full state pension is available and I will be taking it. We want to include this in our available income. When can this be included/looked at, from now or not until after early January? I'd like to be more sure of how much and from whom we might borrow, as although we will have a good LVT (50%ish) we are both at the older age range end of the buyers spectrum. Thanks.

Isthisforreal99

Bit more detail needed

What age are you?
How much is the deposit?
How much do you think you will need to borrow and over what term?
Incomes?

Have you tried any of the mainstream mortgage lenders calculators to see if you meet their criteria?

smallblueplanet

I will be 66 and my partner 60; we will not be retiring until whatever the age limit of the mortgage is?

I want to know is it too soon to apply for a MIP so we can start looking at properties. Also I guess, who might be an appropriate broker or whether to search the market ourselves and apply direct?

Isthisforreal99

AIP - agreement in principal or sometimes DIP - decision in principal. Depends on lender how long they are valid for but generally 90 days.

smallblueplanet

DIP or AIP thanks, but would they consider my state pension if we applied now or do we have to wait until January?
Any particular brokers recommended?

MWT

smallblueplanet said:

I will be 66 and my partner 60; we will not be retiring until whatever the age limit of the mortgage is?

Just be aware that the nature of your work/employment needs to be credible to be able to continue until the maximum age the lender will entertain if you want that income factored in.

If you run into problems getting a repayment mortgage do make sure that products like a Retirement Interest Only mortgage are considered, but this may or may not be a possibility depending on your pension provisions, as they will conduct affordability testing based on each life individually. 

poseidon1

smallblueplanet said:

DIP or AIP thanks, but would they consider my state pension if we applied now or do we have to wait until January?
Any particular brokers recommended?

I am retired and my lenders ( Barclays) would not offer to set up a mortgage until after seeing evidence of my first weekly state pension arriving in my bank acount.

A couple of  months prior to that I had embarked on an extensive affordability review with them, culminating in a refusal to lend anything due to all other investment income sources not being guaranteed . Although  I also provided DWP letter confirmation of pending state pension commencement within a couple of months, they were insistent no offer until pension actually received.

I dealt with Barclays direct, no broker involvement. Also used Barclays because they are one of the few lenders to allow mortgage to age 80 and in my case would have extended that to age 83. A useful facility to reduce monthly payments.

smallblueplanet

poseidon1 said:

smallblueplanet said:

DIP or AIP thanks, but would they consider my state pension if we applied now or do we have to wait until January?
Any particular brokers recommended?

I am retired and my lenders ( Barclays) would not offer to set up a mortgage until after seeing evidence of my first weekly state pension arriving in my bank acount...  I also provided DWP letter confirmation of pending state pension commencement within a couple of months, they were insistent no offer until pension actually received.

I dealt with Barclays direct, no broker involvement. Also used Barclays because they are one of the few lenders to allow mortgage to age 80 and in my case would have extended that to age 83. A useful facility to reduce monthly payments.

Thanks for that. I did see someone else on this 'board' mention Barclays and I think Leeds BS. I will enjoy Christmas and keep an eye on the market and wait until the first payment hits my current account. I'm sure the property market wouldn't be picking up post budget til early Spring anyway.