Over 60's mortgage - low income

Options
richard_3095
richard_3095 Posts: 130 Forumite
First Post First Anniversary
in Mortgages & endowments
Hi. I've just turned 60. I am on a low income of £6,000 odd pa, but in a practical sense my income is like I'm getting about £10K pa. I'm living in a council house, which is worth about £70K, but I can get it for about 21K. Soon I hope to start up in business thus hoping to improve my financial situation greatly.

Can anyone please offer any advice or insight on whether I can get a mortgage, or what mortgage to go for. Disappointingly I was on the Santander website and I entered a figure of £21K for the mortgage amount and 15 years for the term. The response I get is:

"We don't currently have any mortgages available based on your estimated property value and how much you want to borrow. Please change what you're looking for if you wish to compare our mortgage rates."

I guess Santander prefer me to take a loan. Thanks. Rich
«1

Comments

  • ACG
    ACG Posts: 23,729 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    edited 4 June 2017 at 8:38PM
    Options
    On a £6k income you will not get a Mortgage.
    That is primarily because your income will be used for the basics - utilities and food etc. There is not really anything left to pay for a Mortgage in addition, certainly not over a short term.

    Once you have one years accounts, there will be lenders who will consider you depending on your income but it will depend on the details.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • richard_3095
    richard_3095 Posts: 130 Forumite
    First Post First Anniversary
    edited 4 June 2017 at 8:25PM
    Options
    Ok. Thanks for the response. I'm already paying £1032 pa on bedroom tax. A case scenario is that my income remains as it is for about a year and that money would go to pay a mortgage. Also I have a credit rating of 999. But it seems that these facts will not help me.
  • ACG
    ACG Posts: 23,729 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Options
    There is no such thing as a credit score, the agencies give you a score based on their system. Lenders score you using their own system. But paying your bills on time is not a plus as such, it is expected.

    The issue however is not your credit score, it is affordability.

    Lenders have to ensure you can afford the mortgage, saying you have been paying the bedroom tax is not really a valid way of assessing your affordability - besides which, the mortgage would cost you about £2k a year, double what your bedroom tax costs you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • richard_3095
    richard_3095 Posts: 130 Forumite
    First Post First Anniversary
    Options
    OK. Thanks for the input. It helps me see that what I need is someone else who is working or otherwise has sufficient funds, to make a joint application for a mortgage. Effectively offering some return on investment for their financial help. Regards.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Options
    Is there a spouse, civil parter or family member who has been living with you for the last 12 months because you could make a joint application with them?

    Alternatively, rather than pay the "bedroom tax" have you tried approaching the council to swap your current home for a smaller one so that you aren't having to pay to have a spare bedroom?
  • richard_3095
    richard_3095 Posts: 130 Forumite
    First Post First Anniversary
    Options
    Given that the house is worth £70K and I can get it for £20K, I'd rather seek to buy the house. Can a guarantor be a part of a mortgage contract? Probably so, I suppose, but there might be difficulties in this situation concerning council property and rules.
  • silvercar
    silvercar Posts: 46,968 Ambassador
    Academoney Grad Name Dropper Photogenic First Anniversary
    Options
    richard_3095 wrote: »
    Given that the house is worth £70K and I can get it for £20K, I'd rather seek to buy the house. Can a guarantor be a part of a mortgage contract? Probably so, I suppose, but there might be difficulties in this situation concerning council property and rules.

    A guarantor mortgage wouldn't cause a problem for the council.

    Of more concern is low income, low property value, low mortgage needed, ex-council property. Put all 4 together and you have come unstuck.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • amnblog
    amnblog Posts: 12,445 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    It interesting that in the well thought out world of social housing, you can be taxed for occupying a house that is too expansive for your needs, yet it's OK to take it from the housing stock for 30% of it's value.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ianh68
    ianh68 Posts: 15 Forumite
    Options
    Ok whilst not knowing your circumstances on right to buy it is quite common and acceptable for the purchase to be funded by a relative. In the housing association I work for which has a large number of preserved right to buy tenants the only stipulation is that the gift is free for life and does not create a tenancy in kind, that is to say the funder can turf the occupant out. Don't know if that's an option but given high discounts I have seen them with people funding through a daughter or sons personal loan
  • IAmWales
    IAmWales Posts: 2,024 Forumite
    Options
    richard_3095 wrote: »
    Ok. Thanks for the response. I'm already paying £1032 pa on bedroom tax. A case scenario is that my income remains as it is for about a year and that money would go to pay a mortgage. Also I have a credit rating of 999. But it seems that these facts will not help me.

    You're not paying a tax, you're paying rent! You pay only £20 a week rent, seemingly for some years, *and* you want a £50K discount on your property.

    Is this for real? :eek:
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards