Mortagage at ages 65 and 71

sv511

What purchase mortages (if any) are available to us at ages 65 and 71? We would like buy a house in the £300,000+ range with a 50% LTV.

We live in Wales, are legal UK residents (US citizens) and are both retired with a mix of US and UK pension income.

(I tried contacting the mortgate broker who helped us with our current mortgage, but he has not responded and was not in the office when we stopped by)

MWT

You will need to find a broker that handles retirement products like Retirement Interest Only (RIO) mortgages.

You will probably find that a Lifetime Mortgage (Equity Release) is not suitable for you as you will struggle to get near to 50% with the youngest life at 65.

If you are looking for a normal repayment mortgage then you may have some options as well, but they will be relatively short term given the oldest life is 71 and may be more expensive than you would want, which brings you back to the RIO mortgage.

If you go down that route they will assess affordability based on your individual guaranteed retirement income so you will need to be able to show that should one of you die before the other that the survivor will still be able to afford the interest payments.

So much depends on the details of your guaranteed income, and with some of that income in USD that may present some problems, but a good broker will go through all of that with you…

freesha

So a £150k mortgage at 65 and 71, have I understood that right?

sv511

https://forums.moneysavingexpert.com/discussion/comment/81926801#Comment_81926801

Yes — Repayment mortage.

sv511

We are hoping to get a £150k repayment mortgate 50% LTV with a minimum of a 10-year term. The payments would be roughly £300 a month more than we are paying now, which we can afford. I'm cautious when it comes to money. The problem is getting the loan.

In America we qualify for a 30-year repayment mortgage at 80% LTV. If we are limited to an interest-only mortage we'd likely end up returning to the US — A shame, we both like living in Wales.

—Why move home at all? —> Now that we've both retired our current 810sq. ft. cottage is too small.

MWT

https://forums.moneysavingexpert.com/discussion/comment/81927071#Comment_81927071

You need a good broker for this, as the USD income element adds complexity as does the term needing to go past 80 for the oldest life, but if you've got the guaranteed income I'd like to think it would be possible, but you will need to find the right lender…