Would we be able to get an extended the mortgage at our age?
Posted on 29 October 2007
We have a house valued at £325,000 with an out standing mortgage of £40,000.We are now both retired and don't want to move.I am 67 with a pension of £10,000 pa. My wife has a pension of £8,000 pa.Would we be able to get an extended mortgage at our age. Or are there any other options?
Dear Mr Churms,
Of the few lenders that could offer you a mortgage, only a few could do so for more than a few years.Your alternative is an equity release plan of some sort, that would let you take money out of your property, and which is paid back after the death of the second resident, out of the value of the property. These plans have many risks, not least that you may lose the entire value of your property over time and pass nothing down, so it is vital that you get good advice.
Charcol does not advise on Home income or equity release plans but you can find some providers at www.ship-ltd.org/ SHIP does not cover all providers however, so shop around (or find a broker to do it for you) to ensure you get the best deal.
Regards,
Katie
Categories: Mortgages in retirement
Answers provided in response to Ask the experts 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 John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.