Posted on 19 August 2012 by remorg maggie
Hi, I am 52 and hubby is 63. Looking to remortgage, very low ltv-about 30%.Can we take out a mortgage without life insurance and would it be better for me to apply on my own due to age difference?thanks lots
You do not need to take out a Life Assurance policy when obtaining a mortgage and many people do not bother for a variety of reasons. However, you need to consider what will happen if either of you were to die, develop a critical illness or lose you ability to afford the mortgage repayments? Do you want to leave your partner without the means to repay the mortgage and continue living in the same property?
With regards to taking the mortgage in your sole name this is going to depend on how you intend to repay the mortgage. If you are repaying capital and interest to gradually reduce the debt over the term of the mortgage then the longer the term the lower the repayments will be. Lenders typically restrict the loan term to finish before your 75th birthday and the monthly payments may be too high over an 11 year term. If you are paying interest only then the loan term is going to depend on how you intend to repay the debt? I think you need to speak to an independent financial adviser who can discuss the different repayment strategies with you and ensure that you are not left in a position where you have to sell your property to repay the mortgage at a time when you do not want to be moving.
You also need to be aware that you will not get a mortgage in your sole name unless the property title is also transferred to you. There will be additional legal costs to pay and you will need to revisit the terms of any wills you have made.
Please call 0344 346 3672 so that we can help you. Tell the consultant the date and title of your question and they will be able to take some more details from you before going through the different options open to you and your husband.
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.
We recommend you seek professional advice with regard to any of these topics where appropriate.