We can pay but no one would lend us enough
WILLIAM and Julie Cadwell struggled to get a mortgage after being viewed by lenders as ‘too close to retirement’.
The couple, aged 58 and 52, had previously lived in a rented property in Falmouth, Cornwall, for 17 years. But when their landlord told them they had to move out, as the lease on their property was not being renewed, they decided they wanted to buy.
William says: ‘As we were applying for a mortgage in our 50s, only a handful of lenders were willing to lend. It was frustrating as I am still working hard as a self-employed builder while Julie is a healthcare assistant.
‘In fact, we had been paying £1,000 a month in rent and were looking at monthly mortgage payments of no more than £800. Despite this, the few lenders who were willing to offer us a mortgage would only let us borrow a maximum of £80,000. This was nowhere near enough.’
The Cadwells eventually got around the problem by opting to buy a home in nearby Perranporth via shared ownership. William says: ‘We bought a brand new two-bed semi-detached house from developer Aster Group in September 2016, worth £200,000. Under the shared ownership agreement, we bought a 25 per cent share with a £14,000 deposit and a £35,000 mortgage.
‘We got the home loan with Santander, fixed for seven years at 3.6 per cent.
‘But after recently inheriting some money, we have been able to clear this mortgage altogether. We now feel settled in our home.’