Unusual approach to mortgage

ACG

https://forums.moneysavingexpert.com/discussion/comment/81926233#Comment_81926233

Have you considered financial advice?

I am not qualified to provide advice, although I am part way through the exams and used to work for a life office… Generally speaking the closer you get to retirement, the less risky you want your investments to be. At 75 years old do you really want to be mortgaged to 90% LTV?

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/81926233#Comment_81926233

look i had my own approach with my mortgage were I stopped everything (holidays, pension, costly socials, clothes shopping, snacks and unnecessary food etc) to pay my 175k in 1 year and 5months, and I paid it this month. Most ppl couldn't afford to take such extreme measures, esp those with children. So if you are confident that this approach, which is subject to revision and change of circumstances, would work for you (which def needs a financial advisor) then try it out. I 100% doubt it will pan out like you laid out here because your expenses with a child will change drastically as they get older, also your priorities change. But that's all OK as long as you're flexible in how you assess risks and anticipate changes as you progress and assess all returns on investment (e.g. not many of us anticipated a war soaring fuel prices, or this level of inflation).

As for risks, you can get life, health and employment insurance that's bound to the length of your mortgage, which would cover that part. So again, write down all potential risks and establish a plan b for each and mitigations. These mitigations are likely to cost money too, so get your calculator ready.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81926186#Comment_81926186

My interpretation was the OP was planning to stay with the same lender as a default. Otherwise, as you allude to, it would get very expensive. I don't work in the mortgage industry, but I'd have thought it wouldn't be very straight forward to remortgage the same property and materially increase the LTV, with the balance going to the borrower, without outlining what the additional funding was for.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81926202#Comment_81926202

As far as I know, yes. People can and do lie in credit applications, but it is technically fraud. Not something that I would personally entertain.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81926513#Comment_81926513

An offset mortgage would do that.

maxaxe

https://forums.moneysavingexpert.com/discussion/comment/81926236#Comment_81926236

I spoke to a broker about an interest only mortgage and he flagged the onerous terms I mentioned earlier. I don't think he was whole of market, but did look at 50 or so mortgage providers for me.

I'm somewhat happy to tell lenders that the money will go into an ISA if liquidity is their concern. But if our salary can support a 90%LTV mortgage, then it shouldn't be an issue what we do with the cash?

maxaxe

https://forums.moneysavingexpert.com/discussion/comment/81926333#Comment_81926333

Have considered financial advice, just not so keen on the costs. I thought I'd ask the good folk in a internet forum first.

My current thoughts on risks at 75 are that:

I don't think it matters how big the mortgage is so long as you can cover costs from your other accounts. Whether I want to be 100% in equities is another question. My current thoughts are firstly, some (potentially contentious) studies suggest a 100% equity portfolio is optimal for minimising risk of running out of funds in retirement. And secondly, everything I don't spend will be left to my daughter, who has a 30+ year longer investment horizon compared to me and would benefit from more equities.

maxaxe

I have not considered the costs of remortgaging with the same or different lenders, can you explain please?

I assumed I could pick fee free remortgages or at least include the fees in working out cheapest rates. Do I need to pay for revaluation or legal costs or something? Else?