Mortgage

[sqad617]

Is it possible for a 75yr old to obtain a mortgage. Present house worth �700,000, to be sold and for philosophical reasons, do not want to use money to pay for new house.
Mortgage repayments would be no problem.

[EverClean]

Yes - there are loads of lenders who would consider this on an affordability basis - if your income works on their calculations. At age 75 the income would have to be proven.

Why would you want to make mortgage payments at 75?

I don't know anyone who WANTS to make them at any age!

[sqad617]

Thanks everclean, you ask why I would want a mortgage at 75 or indeed at any time. Well I have 4sons and my philosophy has always been that each generation should look after themselves. My wife, who his their stepmother is ten years younger than me 65,so statistically will outlive me. My idea would be to take out a mortgage to be passed on to her on my death, and the outstanding mortgage would be paid on her death thus reducing vakue of estate to be carved up by sons.

[EverClean]

The value of the estate would not be impacted greatly by what you propose. The money raised on the mortgage would be offset by the amount you had in savings that you didn't use for the purchase.

E.g.

Estate worth �700,000
Buy a house for �200,000 with a �100,000 mortgage.
Savings and investments = �600,000

Buy a house outright for �200,000
Savings and investments = �500,000

In both cases the value of your estate is the same give or take a little for servicing the debt and interest/returns on savings.

[WoWo]

Not sure what you are trying to achieve but it seems as if you don't want your estate going to your sons, as Everclean says it will make little difference what you do.

Best way is to simply create a will leaving everything to the cats home.

[sqad617]

Much appreciate the comments of EverClean and Wo Wo, and perhaps I havn't been as upfront as i could have been. The problem is quite simple, here we are "scratting" around on pensions in a �700,000 house, which will be divided up between them on our deaths. Does either of you have a plan whereby on the death of the surviving spouse, the debts incurred taken from the estate is either very small or nothing. Equity Release ? jury still out in my opinion.