Please help, can a 71yr old get a mortgage?

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  • Caz3121
    Caz3121 Posts: 15,545 Forumite
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    hoggums wrote: »
    Currently, if your mother dies before the debts are paid off they will have to be written off. Otherwise you are effectively taking on her debts, which could plague you for years after her death.

    The debts are unsecured, my advice is not to secure them on the house as you will lose this inheritance. As above - go seek professional advice & negotiate the payments down, I'm sure her age will play in her favour.

    I do not believe this is correct. When someone dies the debts cannot be passed to someone else to pay however the estate will be responsible for the debts. The house becomes part of the estate so the debts are likely to still be payable. If someone lives in rented and has no assets then they have no estate so the debts would die
  • justjohn
    justjohn Posts: 2,260 Forumite
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    OP

    What about a care home ??

    They are not all bad and you have time and the money to pay for a good one if you are not bothered about inheritance or who gets the assets.

    You realy should take profesional advice as you are at a crossroads.
  • simpywimpy
    simpywimpy Posts: 2,384 Forumite
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    not sure what the top age limit is but my dad's mortgage is with alliance & leicester on a 30yr interest only term which will clear when he goes and the house is sold.

    Worth a try because the rate wasnt higher than anywhere else
  • Chop
    Chop Posts: 50 Forumite
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    I really do appreciate everyone's advice and I can assure you this is not something we're rushing into and we really have considered all options.

    I am trying to find a profesional for advice (with no fee) but in the meantime, can anyone answer my original question of whether a 71/72yr old could, in theory, get a mortgage with me as a guarantor if we proved we could meet the repayments? Would we be able to get a decent rate? LTV rate would be around 20-25%.

    Or, should we consider equity release?

    Thanks for taking the trouble to respond.
  • Leon_W
    Leon_W Posts: 1,813 Forumite
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    Yes, a 72 year old can have a mortgage. There are lenders with no upper age limit but they would need to be satisfied of pension income and/or guarantors income.

    In my opinion you wont find any mortgage professional give you advice on a "no fee" basis as, as you are aware, it really is a complicated situation which will require some serious consideration in order to give you the best advice. Typical introducer fee (paid by a lender) on a £20k mortgage is £60 before regulatory costs/overheads/tax etc so I hope you take my point in the spirit in which it is given.

    All the best.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    Chop wrote: »
    hoggums wrote: »
    Is equity release as bad as it seems? Martin never writes about them so that must mean there aren't any good ones......


    You can't make that assumption.Equity release is more expensive than an ordinary mortgage but it is now set up to protect customers, unlike in the past.Of course those who might inherit don't tend to like it.

    https://www.ship-ltd.org

    If the home seems likely to be used to pay for care you may as well go the ER route.

    Alternatively you could sell the house and move mother to sheltered accommodation while paying off debt (but this would impact benefits).
    Trying to keep it simple...;)
  • Radiantsoul
    Radiantsoul Posts: 2,096 Forumite
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    Caz3121 wrote: »
    I do not believe this is correct. When someone dies the debts cannot be passed to someone else to pay however the estate will be responsible for the debts. The house becomes part of the estate so the debts are likely to still be payable. If someone lives in rented and has no assets then they have no estate so the debts would die

    The insolvent estate would have an asset though. This would be the transfer at undervalue of the property. You cannot transfer assets and then declare yourself bankrupt and expect it to be unchallenged, the fact that you are dead makes no difference to that.

    I would suggest that transferring the property for no consideration is a bad idea and also slightly dishonest.
  • Trollfever
    Trollfever Posts: 2,051 Forumite
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    This is from the FSA.money from your hom
    http://www.moneymadeclear.fsa.gov.uk/pdfs/equity_release.pdf
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