We feature three sets of people, all over 55, looking for a mortgage
Here are their stories:
Ted and Jen - Borrowers over 50 with a good credit history
Ted (51) and Jen (53) are a professional couple who have a good credit history and a substantial deposit. They're both still in full-time employment but also have good future pension income. They've been a couple for over 2-years and would like to buy a house and move in together. They've gone to their High Street bank, but they will only be willing to give them a 12-year mortgage because of their age and the term couldn't extend beyond their anticipated retirement age of the eldest borrower. This meant that their mortgage payments were outside of their budget, and they were looking for a term of 22 years.
They visited a broker distraught that their dream might not come to fruition. She told that a mortgage from West One could be the answer as the borrower's affordability assessment was based on their pension income allowing the mortgage term to be extended beyond retirement age. Their broker submitted an application and West One approved the mortgage after verifying their income, pension arrangements and a valuation of the property. Ted and Jen are now living in bliss together in their new home thanks to their broker and a West One mortgage.
Sandra and Daniel - Retired with good pension income
Sandra (61) and Daniel (62) have been married for 44 years and were childhood sweethearts. They're retired and paid off their mortgage and want to help their daughter Rosalyn get on the property ladder by giving her a deposit to buy a house. They've gone to their bank but were declined a £25,000 mortgage because they were retired. They had been looking at equity release but wanted to have more control over the equity in their home.
A friend suggested they speak with their broker as he found her a second charge mortgage with West One for an extension, she wanted to build onto her kitchen. After speaking with the broker, they advised that an unencumbered mortgage with West One might be the answer as this is a product designed for borrowers who may need to borrow smaller loan sizes but don't currently have an existing mortgage. Affordability was assessed on their pension income and the mortgage was approved. Rosalyn has started looking for her new home as she has been pre-approved for a West One mortgage.
Alyson - Self-employed IT Consultant - looking to downscale but only has one-year trading
Alyson (55) has been a self-employed IT consultant for two-years after taking early retirement from a job she was in for 35-years. She wants to downscale and move into a bungalow but will require a mortgage to conduct some renovations on her new property. Her bank needed a full two-years of accounts, and she was only in a position to provide one-year full accounts due to her short trading history. They would also only be able to offer a term that ended at age 70.
In speaking with her broker, she was advised a West One mortgage could be an option as they can consider lending beyond retirement age if adequate pension provisions are in place and the borrower can provide more information on how they'll be able to meet their mortgage commitments into retirement. Her broker submitted an application and after verifying her income, pension agreements, dividends from several investments and a valuation of her property the mortgage was approved over a term that was appropriate to the bower's needs. The extension is well on the way and should be complete next month thanks to West One.
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