Remortgage into retirement

Posted on 24 March 2010 by mrs.m.harris


My husband and I are 63 and 61.Our flat is worth around £115,000 less than we paid for it three years ago.We have three years left to pay on our repayment mortgage owing 20,000.We also owe 10,000 on a lifetime tracker loan and we have an mortgage reserve overdraft of 24,000.We have considered selling to pay up the debt but is there a way we can move to another lender without the payments being huge.My husband reaches retirement age in two years what options could be available to us.we have pensions of £967 amonth and my husbands salary of around £12,000 per month.

Mrs Harris

I think that it will be difficult to move to another lender and consolidate your debts without increasing the monthly repayments. This is because all Lenders have a duty of care to ensure that any mortgage taken beyond normal retirement age is affordable and without additional information they will want the mortgage repaid over a period of 4 years.

However, depending on your circumstances, it may be possible to consider a longer repayment period than this or even an interest only mortgage that would only get repaid on the sale of the property. Whilst these would reduce your monthly outgoings, they would also increase the amount of interest you pay in the long term.

I really think that you ought to seek advice from an independent mortgage broker who can let you know the options available in your circumstances and help you compare the costs of each one.

Peter

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