Posted on 17 September 2012 by James
My Wife and I are both 76 years old, owning a 3 bed house value approx. £250K. We really need to move to a Bungalow, but they are invariably for sale in excess of £250K or require major works to update. Our joint income is £30K per annum, and would appreciate your advice on whether we could obtain a small mortgage of say £25, or £30K to be able to purchase a bungalow with an asking price of say £275K -£280K, Our present home is naturally mortgage free.
The vast majority of lenders want any mortgage to finish by the time you are 75, but not all of them. There are some smaller provincial building societies who will still lend to people whatever their age so long as you can prove you can afford it. Certainly with a joint income of £30k a loan of the same amount should be well within your budget.
The real question comes when you talk about how you want to repay the loan, do you want to repay the capital on a monthly basis over the term of the mortgage or do you want to pay only the interest and repay the capital when the property is sold? Ultimately this will decide what type of mortgage you should be looking at and which lenders to approach.
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 help you find the right mortgage for your situation.
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.