Author Topic: Getting a mortgage post-FIRE  (Read 1464 times)

Richie-not-rich

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Getting a mortgage post-FIRE
« on: March 09, 2021, 06:00:23 AM »
https://forum.mrmoneymustache.com/post-fire/getting-a-uk-mortgage-post-fire/

Do you have any recommendations for mortgage providers for folks with the majority of their income from assets? Please add above!

Thanks!

Playing with Fire UK

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Re: Getting a mortgage post-FIRE
« Reply #1 on: March 09, 2021, 07:15:47 AM »
It won't be easy.

Monevator had an article a while ago which involved speaking with the head decision maker at a bank. FirevLondon bought a house with a margin loan from the establishment he held some of his investments already. I think both had income at the time but were doing something similar to you, so their posts might be a decent start. The right mortgage broker would help, but I don't know how to find them.

I found that the bank web pages for intermediaries were more helpful than the pages for customers: you need to tick the box saying you are a mortgage broker to access them.

Are you looking to buy, refinance or cash out?

Richie-not-rich

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Re: Getting a mortgage post-FIRE
« Reply #2 on: March 09, 2021, 11:45:46 AM »
Great, thanks for your time.
We're looking to upgrade to a slightly bigger place which will require a slightly bigger mortgage. We'd rather not sell many assets due to
capital gains tax & the low interest rates.

cerat0n1a

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Re: Getting a mortgage post-FIRE
« Reply #3 on: March 09, 2021, 03:46:15 PM »
No personal experience, but I would probably talk to a mortgage broker rather than applying directly to a bank or building society, as a lot of their lending is entirely computer tick-box based. You'll need to find somewhere that has an actual person making the loan decisions. The FCA essentially required banks to have actual proof of income before making loans, post the 2007/8 crash, so the "self-cert" mortgages of the past are no longer a thing and you will need to show that your assets do indeed reliably produce an income sufficient to cover living expenses and the loan costs.

bownyboy

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Re: Getting a mortgage post-FIRE
« Reply #4 on: March 20, 2021, 01:33:14 AM »
It's something we've thought about too. We recently remortgaged for another 5 years at 1.44% knowing that this could possibly be our last mortgage and resigning ourselves that we will probably be stuck on Nationwide's Standard Mortgage Rate afterwards (currently 3.59% ouch!).

So at that point we will probably pay off the mortgage from combination of ISA and SIPPs.

I personally wouldn't mind continuing the mortgage at such low rates of 1.44% which we currently have.