What mortgage for pensioner, no other income

Veryskint

Hi, I have a mortgage question that I hope someone can help me with.

I am looking for a mortgage for my mother whose only income is her pension. Does anyone know which companies are likely to offer such a mortgage to someone with no other income? She has about 150k equity in her house.

The mortgage is for £15k only, and I am happy to (with good credit rating, 2 household incomes and a fair bit of equity in our house) act as a guarantor for her.

Although the comparison sites tell me what rates she can get, I cant work out which ones will actually offer her a mortgage.

She did see a broker who advised that he could get her a mortgage, so she has made an offer on a house slightly more expensive than the one she is selling. He has now advised that the mortgage company wont offer her the mortgage in question, as she has no income other than her pension.

Thanks in advance for any guidance you can offer.

oneandonlyboy

I dont believe you can get a mortgage for less than £45,000.
How old is your mother as there is a cut of point, cant you lend her the money or get a loan for her and she pays you back?

CLAPTON

whats her age?
how much is her pension?
how long is she trying to borrow over?

Conrad

C & G can consider, but there are other options, so you need to go to a whole of market broker with her. The broker will get a tiny commision after Tax and expenses so they will probably charge a fee.
The minimum mortgage size is usually £25001 so she might need a mortgage of that size which can be paid down to £15000 the day after completion.

Veryskint

Thanks for the responses.

She is 60. She would look to borrow over 10/15 years but pay it off asap. Not sure how much her pension is, it is the basic state pension.

I woudl lend it if I coudl but I haven't cash to lend.

She is considering taking a loan for it, we can do that in my name, but it would be a far higher rate than a mortgage so we would like to stick with a mortgage option if possible.

Are there any downsides to taking out a 25k mortgage then repaying 10k or more immediately?

Thanks for all your help

dunstonh

Not sure how much her pension is, it is the basic state pension.

That would be £4700 a year then if she has the maximum basic state pension.

EdInvestor

dunstonh wrote: »

That would be £4700 a year then if she has the maximum basic state pension.

Anyone who got that only would be eligible for pension credit, currently 6,552 a year, plus free council tax.

dunstonh

Still not going to get a mortgage on that though.

Veryskint

Yes she gets the pension credit. She had assumed that she wouldnt get a mortgage but the inhouse advisor at the estate agents told her she could, which is why she has made an offer on a house. Now the chain is in place, we are looking to see what we can do for her, as it would be a shame to lose the house she wants for this small amount.

What if I guaranteed her mortgage would anyone offer her one with a guarantor do you think?

thanks

brianrhill

It may be that the estate agent's mortgage adviser only has a panel of lenders to choose from, so not truly whole of market although the panel may be representative of the market.

I've done mortgages in the past as low as £15K for pensioners, so state pension can be included, and some lenders will go up to 99 years of age.

Contact an IFA or an independent mortgage adviser.