We are retired with only our state pension. We have about £50,000 in savings, would we be able to get another £60,000 on mortgage?
This is going to depend on the value of your property and how old you are. I do not think you will find anyone willing to offer you a mortgage of £60,000 based on your state retirement income because the monthly repayments would not leave you enough money to live on.
However, you may be able to arrange an equity release mortgage. With a Lifetime equity release mortgage you would not have to make monthly repayments and the interest is added to the debt until you move home, go into permanent care or die, at which time the debt has to be repaid. Alternatively, you can look at Home Reversion Equity Release mortgages whereby you sell part or all of the property to the mortgage company in return for a lump sum and the right to live in the property as if you still owned it until it needs to be repaid.
You will need to take independent legal advice, as well as let your family know if you intend to take out an Equity Release mortgage as it will have a detrimental effect on your future estate and I recommend that you read the following leaflets/guides before giving us a call on 0344 346 3672 to discuss your requirements.
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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