Stroud & Swindon BS - 5.09% (5 year fixed rate)

Peter_La_Fluer

Hello Forumites,

I'm looking to remortgage in the next few months & I've just found this remortgage product with the Stroud & Swindon BS this evening.

• 5.09% (5 year fixed rate)
• Followed by 7.29% SVR
• Overall cost for comparison 6.9% APR
• Product fee £1999
• Free valuation
• Free legal fee's

Yes, I know the product fee is a bit eye watering at £1999 but I've done all the number crunching & this product has got me thinking. I'm going to give them a call tomorrow but I was wondering if anyone on here could be of assistance in the meantime.

It's a joint application & we pretty much 'tick all the boxes' e.g. affordability, good credit history, low LTV (60%).

Here's the problem. The 2nd applicant on this remortgage is 63 years old. Ideally we want a 7 year mortgage term which would take said persons age at the end of the mortgage to 70. All I can find on their website is:

"your loan can be for any term from 5 to 30 years and should end on or before your normal retirement age".

Has anyone else encountered a similar problem when looking to remortgage? If so, what was the outcome? Are lenders (especially in the current financial climate) prepared to offer mortgage terms that exceed the retirement age? Does anyone have any experience of this with the Stroud & Swindon BS.

Thanks in advance.

PLF

homer_j_3

Looks like that you do not tick all the boxes with this one on face value. What is the pension situation of the 2nd applicant when they reach 65?

There are lenders that will lend beyond retirement by the term you need so do not get down if this one doesn't work out for you.

Peter_La_Fluer

Thanks for the reply homer_j,

The 2nd applicant has two pensions. A pension from a previous employment & a pension from their current employment (25 years service). Also, they own another property outright with no outstanding mortgage. In addition, they have susbstantial savings & investments.

Taking into account the above information, (in your opinion) do you think that the Stroud & Swindown BS will be flexible with their criteria & take an individual case on it's merits? The Abbey offered a term of 7 years & the A&L offered a term of 12 years.

PLF

UK007BullDog

They might take the rental and the two pensions if they are enough to cover the mortgage. Investments are not a regular income as such. You might have to call the lender and ask them about the 65 year rule.

Is the 2nd applicant needed for the mortgage? If not, he can be added to the deeds but would not be required to prove income.

If you see a broker they might be able to find a mortgage for you without requiring the 2nd applicants income.

homer_j_3

Whenever I get a case that seems to fit on common sense but not criteria. Clearly a pensionable income is guaranteed so I would hope that with one applicant being under the retirement age and the LTV being good - they would be daft to dismiss on that information alone.

The issue that you may have, is getting access to an underwriter but the best way to deal with it would be to call them and just lay your cards out and ask if they could consider this.

Are both applicants going to be living there full time?

Peter_La_Fluer

In response to UK007BullDog:

Yes, the 2nd applicant is needed for the mortgage. Sorry if I didn't explain fully in my earlier post but the 2nd applicant lives in the property that they own outright.


In response to homer_j:

No, I'll be living in the property full time but the 2nd applicant will not.


Many thanks both for the advice. The Abbey mortgage advisor was falling over himself to offer us a mortgage based the information I've explained briefly on here. I just hope the S&S will be as positive. I'll call them tomorrow & see what they say. Will post an update tomorrow when I get chance.

homer_j_3

I do not think that they will allow it, its a guarantor mortgage you need ideally for this.

I had a client in a similar situation and they weren't keen on this. My original recommendation would still stand. Call them and just say that before you go to the trouble of credit checks etc, could they tell you if they would accept a mortgage with a guarantor or second applicant that was not living there.

Peter_La_Fluer

Just a quick update on this thread. I spoke to the Stroud & Swindon about our proposed remortgage & they were quite positive about it. I explained the situation & they said that although I wouldnt be able to apply online, I would be able to apply over the phone & get the same deal.

They said that they would consider an application for a mortgage which ran past an applicants 65th birthday as long as 'proof of pension income' could be provided.

The irony of all this is that Stroud & Swindon have now pulled the 5.09% deal! However, all is not lost as this debate has given us the opportunity to review our remortgage plans to come up with a less complicated solution. We've now more or less decided to go with a deal from the Abbey which would allow me to be the sole applicant.

Many thanks for the contributions though, it was much appreciated.

PLF

Peter_La_Fluer

Just a quick update on this thread. I spoke to the Stroud & Swindon about our proposed remortgage & they were quite positive about it. I explained the situation & they said that although I wouldnt be able to apply online, I would be able to apply over the phone & get the same deal.

They said that they would consider an application for a mortgage which ran past an applicants 65th birthday as long as 'proof of sufficient pension income' could be provided.

The irony of all this is that Stroud & Swindon have now pulled the 5.09% deal! However, all is not lost as this debate has given us the opportunity to review our remortgage plans to come up with a less complicated solution. We've now more or less decided to go with a deal from the Abbey which would allow me to be the sole applicant.

Many thanks for the contributions though, it was much appreciated.

PLF