Aged 55, part time job, large deposit - mortgage advice required

Becks045

I'm enquiring on behalf of family who have been out of the country for a few years and are intending to return in the next 6 months.

They would like to buy a property in the UK which would be their main residence and only property.

The problem is they are in their 50's and don't work full time. Although one of them would be happy to get a full time job if it would help with the application. They would have about a 60% deposit and would like to borrow the rest.

Can anyone offer advice on whether someone would consider a mortgage for them? I presume the term would be reduced owing to ages?

Thanks.

homer_j_3

There are lenders that will lend into retirement but it needs to be affordable.

You would need to be more specific with their incomes and what they were wanting to borrow for anyone to say how realistic it would be

Conrad

Apart from age another important factor is credit traceability. The vast majority of lenders will not lend without up to date 3 years UK credit history.

Then there will be checks around sustainability - is the applicant likely to committ to a new job/newlife, is there a probation?

How much are they borrowing? If its 5 x income then theres another challenge.

A lot of people have the impression such a low loan to value should mean borrowing ought to be straight forward. The point though is whether or not a loan is deemed responsible lending. Repossessing is a major endeavour so the fact there is lots of equity does not alter the responsible lending test.

Becks045

I've explained to them that just because you have a large deposit it doesn't mean its easy to get a mortgage!

Roughly speaking, the property would be £150k and they could put down £90k deposit, thus needing to borow £60k.

Would have been out of the UK for 3 years although prior to that was here from birth. No debts at all and was at their previous address in the UK for over 10 years.

Income is £16,500 from job (about £1,100 after tax/NI a month) and private pension of £450 a month. They would also have about £20k in savings.

A family member would be happy to act as a guarantor as well if that would help.

homer_j_3

the income looks ok. Where are they moving back from?

Becks045

homer_j wrote: »

the income looks ok. Where are they moving back from?

Spain, they tried it but want to be back in the UK.

homer_j_3

OK, I cant forsee it being a real issue then

herbiesjp

Ex-pats coming back - should be straightforward with that LTV and income

Did they maintain links to the UK i.e bank accounts etc?

Becks045

herbiesjp wrote: »

Ex-pats coming back - should be straightforward with that LTV and income

Did they maintain links to the UK i.e bank accounts etc?

They still have their British bank account which is infact the account which the pension is paid into and has been the entire time they've been in Spain.

Thanks all for the advice. They didn't want to move back without knowing they at least had a chance to buy somewhere here!

rdsmortgageman

Sounds fine to me. The fact that it is an EU company should make it easier. I did one for clients coming back from Australia about 18 months ago. Halifax were best at the time and offer was pretty quick, however they are best speaking with a UK adviser who will carry out a full mortgage review/fact find.

herbiesjp

Becks045 wrote: »

They still have their British bank account which is infact the account which the pension is paid into and has been the entire time they've been in Spain.

Thanks all for the advice. They didn't want to move back without knowing they at least had a chance to buy somewhere here!

So they will still have credit history over here which will make it easier.

Full systems go for them!

Just the normal caveats of affordability with the mortgage pre and post retirement