Mortgages for over 60's....
I am seeing more and more older borrowers come to see me and fortunately, I have been able to help them all so far!
Mostly clients over the age 60, who are coming to the end of their mortgage term and they are on interest only and not sure what they should do next. The problem in the main, is that most lenders these days, do not like interest only mortgages anymore and will only allow repayment if you have a lot of equity, a very large salary or can still prove you have a worthy repayment vehicle (savings, endowments, investments etc). If you don't have any of these, you maybe someone who is classed as a mortgage prisoner with their own lender!
The obstacles we come across, is when do you intend to retire? Is it feasible to continue past the age of 70 (if you're in a manual job, the lenders view is already NO!) What pension income will you receive and when? Can you afford to switch to a repayment mortgage, or does a lender deem it affordable to switch to repayment, if the maximum term is 7 years? If you have a small mortgage this may be OK, a large mortgage is a different story....
Do you have children that are expecting an inheritance? Do you feel it's your money and you want to take it with you or could it be, that you don't have anyone to leave it to? Are you happy to have an interest only mortgage for the rest of your lives or until you move into long term care? Would the kids pay the monthly cost of an interest only mortgage to protect their inheritance and for you to remain comfortable and in your family home?
We have lots of lenders with lots of options, recently we have managed to get the following:
£193,000 interest only re-mortgage over 7 years for a 62 and 72 yr old - 5 yr fixed @ 2.54% - at the end they will look to downsize or move to a lifetime mortgage.
£238,000 repayment re-mortgage over 15 years for a 69 and 65 yr old at a pay rate of 2.19% - they are happy it will be repaid and they can stay in their family home.
£60,000 repayment purchase mortgage over 9 yrs for a 60 and 59 yr old - 7 yr fixed rate @ 2.19% - taking option to downsize now and purchase their forever home.
£97,000 interest only purchase mortgage over 7 yrs for a 65 & 67 yr old - 2 yr fixed at 2.89% - downsizing to their forever home and looking to swtich to lifetime at the end of the term.
£280,000 repayment re-mortgage over 9 yrs for a 62 yr old at 1.69% pay rate.
All of the above are with standard high street lenders!
So, if you're coming to the end of your mortgage term, please come and speak with us, we like a challenge!
Date: Jan 2017