Retirement Interest Only Mortgage
Discussion
Ok, I know I started the anywhere to buy a house in England for £150,000 and some interesting suggestions came up, but it looks like that if I want to live somewhere I like, and close to family, I'm going to have to fork out up to £300k, and even then there's not much choice, hey ho 
According to Google AI with £200k of my own cash and a RIO mortgage of up to £100k based on my savings and pension pot, it is possible...... but.......
trying a few of the lender's online forms only gets me between £30k and £50k.
Should I try a mortgage broker? and what would I expect to pay? would they even be successful with those figures.
My pot could currently pay me a pension of £12k, and my savings would get me from my current age, 63, to State Pension at 67. I believe around £12k again.
More than enough to pay interest payments on the loan and far far less than my current rent of £1500/month.
A friend tells me that her broker is brilliant. He charges a one off fee of £500. Half before, half once he's found a product you are happy with.
Is that a good price?
Sorry for so many questions, I'm always wary of IFAs and Brokers. Known of a few that have screwed friends over and one was even a family member who feked over a few of us.
The mortgage could just tie me over until my Drawdown is done and dusted and I use the tax free amount to pay it back.
Cheers all.
According to Google AI with £200k of my own cash and a RIO mortgage of up to £100k based on my savings and pension pot, it is possible...... but.......
trying a few of the lender's online forms only gets me between £30k and £50k.
Should I try a mortgage broker? and what would I expect to pay? would they even be successful with those figures.
My pot could currently pay me a pension of £12k, and my savings would get me from my current age, 63, to State Pension at 67. I believe around £12k again.
More than enough to pay interest payments on the loan and far far less than my current rent of £1500/month.
A friend tells me that her broker is brilliant. He charges a one off fee of £500. Half before, half once he's found a product you are happy with.
Is that a good price?
Sorry for so many questions, I'm always wary of IFAs and Brokers. Known of a few that have screwed friends over and one was even a family member who feked over a few of us.
The mortgage could just tie me over until my Drawdown is done and dusted and I use the tax free amount to pay it back.
Cheers all.
T697JVS said:
You re 64 so you can take the tax free lump sum now and leave the rest in drawdown (but not draw it down until you need it).
True. The company it's with don't do Drawdown so I'll have to transfer it. All do able. I have a very small pension with Aviva, who do do Drawdown so maybe I'll transfer to them.
I ( and two of my sons ) have all used London and Country as a broker.
No fees paid by any of us and in many respects after the initial introduction to the Lender they stepped away and said relationship continued direct.
As with any broker using them to do all the work for no extra payments seems quite sensible.
No fees paid by any of us and in many respects after the initial introduction to the Lender they stepped away and said relationship continued direct.
As with any broker using them to do all the work for no extra payments seems quite sensible.
Pat Testing said:
Consider using Equity Release for the additional funds you need to borrow. Interest rate would be higher, but you could probably borrow more and there are no affordability requirements from the lender.
How would Equity release work if the OP doesn t currently own a property? Ie what equity is he releasing?Countdown said:
How would Equity release work if the OP doesn t currently own a property? Ie what equity is he releasing?
It would be effectively releasing equity from the new property. This explains it https://ukmoneyman.com/can-i-buy-a-house-with-a-li...Pat Testing said:
Countdown said:
How would Equity release work if the OP doesn t currently own a property? Ie what equity is he releasing?
It would be effectively releasing equity from the new property. This explains it https://ukmoneyman.com/can-i-buy-a-house-with-a-li...That sounds a lot like Shared Appreciation Mortgages.
Countdown said:
Thanks.
That sounds a lot like Shared Appreciation Mortgages.
Maybe have another read - it's nothing like a Shared Appreciation Mortgage.That sounds a lot like Shared Appreciation Mortgages.
Don't get confused by the fact that the interest rolls up. It doesn't have to.
You can pay the interest every month, just as you can with other types of Interest Only Mortgage. If you do this then the most you'll ever owe is the original sum borrowed (plus any early redemption charge if applicable).
Gassing Station | Finance | Top of Page | What's New | My Stuff