Almost 60, house/mortgage options?
Discussion
My Mum is 59 and for the past 10 or so years has been living in a flat which she mortgage with my younger sister, mainly to get the term she needed. Now my sister needs to get off the mortgage so she can buy somewhere bigger with her husband, so my Mum needs to sell the flat and will be fending for herself again.
She should have circa £50k after fees etc. What are her options? For obvious reasons I don't want her to rent and there's no way she'll afford a mortgage on such a short term.
Been trying to think of any option possible and drawing a bit of a blank!
She should have circa £50k after fees etc. What are her options? For obvious reasons I don't want her to rent and there's no way she'll afford a mortgage on such a short term.
Been trying to think of any option possible and drawing a bit of a blank!
matc said:
My sister doesn't have any money tied up in the property
sideways sid said:
Perhaps this is a stupid question, but why does your sister need to get 'off the mortgage' if she doesn't have any equity in the property? The inference is that she presumably is not making any contribution to the mortgage on it either?
Because the mortgage will be showing on her credit file and will have to be disclosed as a commitment, whether she is making a contribution or not, meaning she may be struggling to stretch her and her husband's figures enough to do what they are wanting to do, with this still as an ongoing commitment in the background......Sarnie said:
sideways sid said:
Perhaps this is a stupid question, but why does your sister need to get 'off the mortgage' if she doesn't have any equity in the property? The inference is that she presumably is not making any contribution to the mortgage on it either?
Because the mortgage will be showing on her credit file and will have to be disclosed as a commitment, whether she is making a contribution or not, meaning she may be struggling to stretch her and her husband's figures enough to do what they are wanting to do, with this still as an ongoing commitment in the background......Any ideas? Had a look online at retirement places today, I don't think she'll be keen!
Do any lenders offer a mortgage to the over 60's past retirement age?
matc said:
Not really, currently planning an extension which requires a remortgage.
My sister doesn't have any money tied up in the property, it was purely down to using her to get a term/payment that worked.
Plan a whopping big extension with a £50,000 injection of cash to create a granny flat? My sister doesn't have any money tied up in the property, it was purely down to using her to get a term/payment that worked.
Stenn said:
matc said:
For obvious reasons I don't want her to rent
What are the obvious reasons? Sarnie said:
sideways sid said:
Perhaps this is a stupid question, but why does your sister need to get 'off the mortgage' if she doesn't have any equity in the property? The inference is that she presumably is not making any contribution to the mortgage on it either?
Because the mortgage will be showing on her credit file and will have to be disclosed as a commitment, whether she is making a contribution or not, meaning she may be struggling to stretch her and her husband's figures enough to do what they are wanting to do, with this still as an ongoing commitment in the background......1. the asset is also 'hers' unless it is solely registered in the name of the mother? and
2. her bank records will show that she is not making repayments
so, looking at it simplistically, in the eyes of the underwriter, the borrower's affordability is unchanged against being 'off the mortgage' but she has an asset and a mortgage with no defaults etc
sideways sid said:
Without meaning to question Sarnie's wisdom, surely:
1. the asset is also 'hers' unless it is solely registered in the name of the mother? and
2. her bank records will show that she is not making repayments
so, looking at it simplistically, in the eyes of the underwriter, the borrower's affordability is unchanged against being 'off the mortgage' but she has an asset and a mortgage with no defaults etc
"her bank records will show that she is not making repayments"1. the asset is also 'hers' unless it is solely registered in the name of the mother? and
2. her bank records will show that she is not making repayments
so, looking at it simplistically, in the eyes of the underwriter, the borrower's affordability is unchanged against being 'off the mortgage' but she has an asset and a mortgage with no defaults etc
Doesn't matter. If the Mother stops paying the mortgage, who will they chase?
The sister, as she is 100% jointly liable for the debt whether she lives there or pays a penny to it or not. The underwriter needs to assume that the sister may at some point have to take over payments for a debt that she is liable for as she is named on it......
I'm in a not dissimilar position and I go with the argument that it's cost neutral.
I'm on my sons mortgage (technically speaking affordability was a problem in his sole name when he split up with his partner and she wanted out). Repayment mortgage is with Nationwide and they are happy to lend to age 75.
It doesn't appear on my credit file - well at least it doesn't at my home address. Whether it does at his or not I neither know nor care, frankly. He's making the payments so nothing showing on my bank account.
So I don't declare it and there's nothing obvious to evidence it. If I were pushed I'd say I had an investment property, rented out and which gave me no income and that's the truth.
A bit of role reversal maybe but your sister sounds to be in a similar position to me.
I'm on my sons mortgage (technically speaking affordability was a problem in his sole name when he split up with his partner and she wanted out). Repayment mortgage is with Nationwide and they are happy to lend to age 75.
It doesn't appear on my credit file - well at least it doesn't at my home address. Whether it does at his or not I neither know nor care, frankly. He's making the payments so nothing showing on my bank account.
So I don't declare it and there's nothing obvious to evidence it. If I were pushed I'd say I had an investment property, rented out and which gave me no income and that's the truth.
A bit of role reversal maybe but your sister sounds to be in a similar position to me.
My Wife's parents got a mortgage when FIL was 71. Only had State Pension and a small work pension.
OK this was 30 years ago but I was amazed that it was granted so easily. It had a 15 year life. I think they raised about 30% deposit.
My advice would be to shop around to see what terms may be offered. You don't seem to have anything to lose.
OK this was 30 years ago but I was amazed that it was granted so easily. It had a 15 year life. I think they raised about 30% deposit.
My advice would be to shop around to see what terms may be offered. You don't seem to have anything to lose.
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