Would Mortgage companies allow this?

fruityslh

My mother in law is currently looking at buying another house and taking out £30000 over 15 years as advised by a financial adviser, however her husband retires in 7 and then they will be on a basic state pension, would a mortgage company really give them a mortgage over 15 years? Do you know of any that would (he's given her details from Abbey & A&L)

Thanks
Fruity

herbiesjp

Those mentioned may be able help along with some other lenders, however it will depend on personal circumstances, and what income they will both be receiving and whether this would still be classed as affordable given their situation.

Would he be in a position to overpay now or would he have a lump sum at some point to clear the debt before he retires?

However, if they are not comfortable with the situation then they should not go ahead with the project.

fruityslh

My FIL is on about £20K a year, so I think it is affordable however they are frightened by the huge leap in mortgage payments from £100, so they are looking at taking out over the longer term, so payments are less (I know they're not in the long run but that's difficult to understand for them) They do have two endownments that are currently worth about £8K, but they are with Standard Life so they are awaiting the outcome on de-mutualisation before doing anything with them, my MIL says that they will pay this straight off the mortgage (however I know my MIL and am not convinced she would do that, but I have strongly advised her that she must)

I have checked and they will both be on State Pension only, when my FIL retires, however he does have plans to work past 65, but I don't think he's asked his current company whether he could or not

Can you tell me what other lenders would offer past retirement