Upsizing in Retirement

[Mum2Fergus]

Posting here and in Property too for traction. I’m going against the grain in retirement and looking to upsize instead of downsize…or rather, I’d like to upsize - however no-one will take me on for a mortgage as I effectively have no ‘earned’ income…it would appear pension drawdown is not counted. Frustrating to say the least!

Has anyone successfully navigated the same or similar position?

No finical advice but it not as ridiculous as as it sounds
it’s all well and good getting 2 pensioners in a one bed flat
but if there health declines and they need help
it becomes incredibly difficult to manage
things like the bedroom needs to be big enough to get 2 people round the bed and get somebody dressed
hoist and walker frames all need space and also as one persons health declines the other person needs a 2nd bedroom
nice big bathroom/wetroom again needing to get 3 people in

It doesn't seem to make sense to take on a mortgage in retirement. I have known people upsize to invest spare cash in property. But if you don't have spare cash, I guess generally you just make do with what you've got?

I would not want a mortgage in retirement but I does depend on the size of the mortgage and how much pension you have. The flat to small house hyperthetical actually does make sense but a big house with all the upkeep and ongoing maintenance sounds a bad idea when elderly.

Would they take annuity income? If so then buy an annuity which covers the mortgage payments for the length of the mortgage. This is the sort of situation a financial advisor would be helpful.

it sounds like you’re going to have to stay where you are, or move to a cheaper location.

Have you tried a mortgage broker?

Have you looked at a retirement interest only mortgage. There are many issues with them but if you go in understanding exactly how they work, they can be a good idea for some people in some situations.