Could I raise a mortgage on my pension alone?

Posted on 10 February 2008

I took early retirement as a teacher. My gross pension is £13,500. I earn the same again as a freelance trainer. I was 57 in January 2008. Could I raise a mortgage on my pension alone, preferably interest only? I intend to carry on working until I am 65.

Yes you can, as long as your income is provable.  Arranging it on interest only should not be a problem. Most lenders will allow you to take a mortgage until your 70th birthday, although I don't advocate people taking a mortgage for longer than they are working, just because of affordability:  pensions are very difficult to live off.  An income of £27,000 would get you around £108,000.

Just search for your preferred interest rate and start there.   www.charcol.co.uk

Category: Mortgages in retirement

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question