Parents splitting

Hello,

My parents are currently going through a divorce.

My Dad and I still live in the family home.(worth £105,000)

He doesn't want to lose the family home and is looking for a little advice on what to do.

Hes 66 and brings in currently just under 1000,with the main income coming from benefits.


Hes currently looking to get a mortgage to buy my mum out of the house.

Will any mortgage lender all him to borrow if his main income is wholly benefits?

Hes needing roughly 50k but could be less ,no-more.

Do you think its possible on his income to achieve this amount with his age + income against him?


If not is equity release an option?

If so how does this work?


Any info /help would be much appreciated.

Many thanks
«1

Comments

  • feisty1
    feisty1 Posts: 1,487 Forumite
    For equity release u need to speak to a mortgage adviser who is also qualified in ER, however yr dad is a bit young to make this work........Ask a member of family/friend to refer you to an independant mortgage advisor they will be abe to explain options, what with yr dad's age that is the best thing
  • simpywimpy
    simpywimpy Posts: 2,384
    First Anniversary Combo Breaker First Post
    Forumite
    My dad got his mortgage from alliance & leicester on benefits without problems. You might be able to get interest only and if on pension credit, they may pay some of the interest of the loan for you.
  • J2733 wrote: »
    Will any mortgage lender all him to borrow if his main income is wholly benefits?

    Hes needing roughly 50k but could be less ,no-more.

    Do you think its possible on his income to achieve this amount with his age + income against him?

    If not is equity release an option?

    Yes, my mum got a mortgage when she was about 70 and her only income was from State benefits, and then the State paid the interest on her mortgage. I have no idea how it works! I wouldn't go for equity release, though, it could result in your Dad being homeless at an age when it is harder to adapt to change.
    YouGov: £50 and £50 and £5 Amazon voucher received;
    PPI successfully reclaimed: £7,575.32 (Lloyds TSB plc); £3,803.52 (Egg card); £3,109.88 (Egg loans)
  • Ok thanks guys.

    So do you think 50,000 is doable ?

    or highly unlikely

    Thanks
  • feisty1
    feisty1 Posts: 1,487 Forumite
    [quote=beaujolais-nouveau;17175947] I wouldn't go for equity release, though, it could result in your Dad being homeless at an age when it is harder to adapt to change.[/quote]

    This is totally incorrect, this is the reason I have suggested you see a speciaist.........i am an adviser qualified to do ER & i certainly woudn't be making a client homeless! ......have a look at the SHIP website and you will see the no negative equity explained


    http://www.ship-ltd.org/
  • feisty1 wrote: »
    This is totally incorrect, this is the reason I have suggested you see a speciaist.........i am an adviser qualified to do ER & i certainly woudn't be making a client homeless! ......have a look at the SHIP website and you will see the no negative equity explained


    http://www.ship-ltd.org/

    No sign on that web site of SHIP being FSA-regulated, so I don't know what you can mean by being "an adviser qualified to do ER".

    The OP would be better advised to look at independent, FSA-regulated agencies and eg

    http://www.moneymadeclear.fsa.gov.uk/pdfs/equity_release.pdf
    YouGov: £50 and £50 and £5 Amazon voucher received;
    PPI successfully reclaimed: £7,575.32 (Lloyds TSB plc); £3,803.52 (Egg card); £3,109.88 (Egg loans)
  • feisty1
    feisty1 Posts: 1,487 Forumite
    [quote=beaujolais-nouveau;17187923Quote: ]"I don't know what you can mean".............
    This is clear you don't know because if you had taken the time to read the website you would have discovered =SHIP =Safe Home Income Plans .........SHIP is an organisation supported by the leading providers of Home Income and Equity Release Plans. Safe Home Income Plans which was set up to safeguard the interests of homeowners. SHIP was established in 1991 and promotes safe equity release and protection of planholders. Members (lenders) display the SHIP logo as a guarantee to their customers. Age Concern has welcomed the SHIP Code of Practice. Members ie Prudential, Coventry. Dunfermline, NU, Standard Life If you require confirmation of this click on the FSA ink below and refer to pg 15.

    As for my qualifications, I am a fully qualified Financial & Mortgage Adviser who holds an additional qualification knows as CF7 which allows me to transact ER (Equity Release) It should not be assumed that all advisers are qualified in this area.

    I have no problem with people requesting information, what I do have a problem is with someone who is challenging and they themselves are misinforming!
    http://www.moneymadeclear.fsa.gov.uk/pdfs/equity_release.pdf

    pg 15
  • feisty1 wrote: »
    [quote=beaujolais-nouveau;17187923Quote: ]"I don't know what you can mean".............
    This is clear you don't know because if you had taken the time to read the website you would have discovered =SHIP =Safe Home Income Plans .........SHIP is an organisation supported by the leading providers of Home Income and Equity Release Plans. Safe Home Income Plans which was set up to safeguard the interests of homeowners. SHIP was established in 1991 and promotes safe equity release and protection of planholders. Members (lenders) display the SHIP logo as a guarantee to their customers. Age Concern has welcomed the SHIP Code of Practice. Members ie Prudential, Coventry. Dunfermline, NU, Standard Life If you require confirmation of this click on the FSA ink below and refer to pg 15.

    As for my qualifications, I am a fully qualified Financial & Mortgage Adviser who holds an additional qualification knows as CF7 which allows me to transact ER (Equity Release) It should not be assumed that all advisers are qualified in this area.

    I have no problem with people requesting information, what I do have a problem is with someone who is challenging and they themselves are misinforming!
    http://www.moneymadeclear.fsa.gov.uk/pdfs/equity_release.pdf

    pg 15

    OK, two things. First, if SHIP were FSA-regulated, this would be stated on the web site home page.

    Second, currently the SHIP web site is in breach of the First Company Law Amendment Directive (effective 1.1.2007, and could incur a fine at any moment) and of the Disability Discrimination Act. Not very confidence-inspiring.
    YouGov: £50 and £50 and £5 Amazon voucher received;
    PPI successfully reclaimed: £7,575.32 (Lloyds TSB plc); £3,803.52 (Egg card); £3,109.88 (Egg loans)
  • feisty1
    feisty1 Posts: 1,487 Forumite
    BN: For goodness sake can you not read, they are not lenders. If they were lenders, why would the other lenders ie Pru etc promote them!!??

    You clearly have some block in being abe to differentiate between a lender and an industry body.
    SHIP is an organisation supported by leading providers of home plans. Launched in 1991 in response to high profile problems of equity release schemes, SHIP is dedicated entirely to the protection of planholders and promotion of safe home income plans. All participating companies are pledged to observe the SHIP Code of Practice and to display the SHIP logo in their brochures and other printed material as a guarantee to their customers.
  • feisty1 wrote: »
    BN: For goodness sake can you not read, they are not lenders. .. [et seq][/quote]

    The SHIP web site fails also to comply with the EU/UK data privacy legislation effective 11 December 2003.

    I don't think that I have said anything about lenders.

    I think the OP would be better off doing her own research on the web, getting an appointment with local building society offices, and talking to the State benefits people and - her/her father's situation is not that complicated.
    YouGov: £50 and £50 and £5 Amazon voucher received;
    PPI successfully reclaimed: £7,575.32 (Lloyds TSB plc); £3,803.52 (Egg card); £3,109.88 (Egg loans)
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