Mortgages in Retirement

Posted on 12 August 2011 by gloria mc coll


Could I get a £30,000 mortgage at 67 yrs. I am on state pension?

Gloria

It is possible that you can get a mortgage based on your age and the value of your property instead of a standard residential mortgage based on your income and the value of your property.  If you are on the basic State Pension then your income will be insufficient to support a mortgage of £30,000 and because most Lenders will want the mortgage repaid by age 75 at the latest, the short mortgage term would make the monthly payments too high.

I think you need to look at Equity Release mortgages, which run until the property is sold and do not need you to make monthly interest payments.  This means that the interest charged will build up and when the loan comes to be repaid the debt could be many thousands of £s more than the original loan. 

You should not take out one of these mortgages without first taking independent financial and legal advice, consulting with any dependants you may have and/or the beneficiaries of your estate.  We can help you and 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.

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

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