Can I get a mortgage?

Posted on 4 October 2011 by catherine


Hi, I am wondering if I would get a mortgage on my £12,000 p.a salary?  I have approx £50,000 to use towards a property, I am 56 years old, but plan to work well into retirement age or over.

Catherine

It should be possible to get a mortgage but the question is will it be large enough for you to buy the home you want?  With £50,000 to put towards the purchase, I would expect you to be able to borrow somewhere in the region of £40,000 and be looking at properties valued around £85,000.

The choice of banks or building societies willing to lend beyond normal retirement age is limited and those that do will need to see that you can afford the mortgage throughout it's term.  You will also need to think carefully about how you wish to repay the debt.  A capital repayment mortgage will pay the debt off over the term of the mortgage, but will have higher monthly payments than an interest only mortgage.  Whereas an interest only mortgage will have cheaper monthly payments, but you will need to have the funds available to repay the debt at the end of the term to avoid having to sell your home.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.

Peter

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 necessarily 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.

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