Mortgage for retired people

[maclarencat]

I wonder if anyone on here knows if it is possible to get a mortgage when you are retired. We currently own our house outright (185k approx) but we would like to buy a piece of our neighbours land and out building. We have not spoken to him yet but I think he would be agreeable to whatever we offered but we do not want to cheat him so thought if we offered 15k that would be fair but we do not have the money we would need. What do you think our chances of getting a mortgage would be so we could buy it? Also any idea how much it would cost to change the land registry etc

[hellywelly4]

You could perhaps try equity release? Saga have a good package.

[maclarencat]

Yes I am a bit wary of equity release schemes as you end up not fully owning yor property with all the problems that may bring in the future I would ather borrow if possible

[Old_Geezer]

Even if you borrow you will need security, which may mean your present home.
I can only guess at the situation you describe but it seems to me that if you can show you have enough "guarantied" income, then it ought not be a problem.

[craft1948]

http://www.mortgageso...derly_mortgages2.html

[Postdog]

no expert, so don't count this as gospel but....last year when I was enquiring about a small mortgage I was told that any income, including pension, could count for getting a mortgage, providing all other criteria was met.

[maclarencat]

Thankyou Yes we do have sufficient secure income its capital we lack! It seems they dont want to give a mortgage for less than 25000

[LoftyLottie]

These people may be able to help.

Lifetime Mortgages seem to be a better deal than other Equity Release Schemes.

http://www.equity-rel...ifetime-mortgages.htm

[maclarencat]

Thanks postdog
I think maybe I will just have to go to the bank and discuss it with them

[tamborine]

If you took a larger loan from the bank on you house value. (bank holds deeds) you could purchase the land & buy another property (flat?) to earn extra rental income.

[ladybirder]

It wouldn't have been a problem a few years ago but banks/BS have got a lot tougher. With owning your own house outright and if you have the income to service the mortgage then I think you might still be able to do it. Halifax and Abbey (now Santander) would be a good place to start. Or go to a mortgage broker.

[maclarencat]

Thanks LoftyLottie but that is not really what we want

[hc4361]

For around £15k you should consider a secured loan from your bank. This will be a shorter term than a mortgage and so the repayments will be higher per month but you may end up paying less overall.

Mortgages are not suitable for loans of that amount. Be careful though because I am fairly sure interest rates are going to rocket in the next few years.

[ladybirder]

This link might help you.

http://www.mortgageso...derly_mortgages3.html

[boxtops]

My dad did an equity release plan, it was a while ago but it was a good deal, he needed £30K - all it meant was that when the house was sold (which was a very long time after he had died), the first £30K went back to the lenders. Mum was able to live in the house for years after he had died, I wonder if therefore was a joint equity plan in favour of the surviving spouse.

[dasherman]

Boxtops - are you seriously saying your dad borrowed £30k and didn't have to pay any interest on it.

[maclarencat]

I seriousley doubt no interest. That is why we dont want to get into equity release. My husband is 70 but I am only 58. Hopefully it will be another 20 to 30 years before I die in which time I think the whole value of the house would be taken in interest. That is why I would prefer a fixed tem loan or martgage. I am going to the bank on monday Thanks for all the advice