near retirement mortgagee and me

monkeyalan_2

my mum has offered to re mortgage her property ( value @160k - no mortgage now) to loan me and the gf £40k so we can move up the ladder but keep our current deal (1.5% abv base).

so... she is 56 and doesn't work anymore but has a pension ( dad passed away) of @9k a year.

If we ( me and mum) try to get a morgage together on her house with her income and mine does anyone forsee any issues getting what is basically a 25%LTV mortgage?

thanks

Cannon_Fodder

Is your current mortgage portable? (to the "up the ladder" property)

Can you afford the interest and capital repayments? of around £430 a month, I calculated using a 10 year period, assuming you don't want to drag the debt too far into your Mum's retirement.

If you have a good deal, can you not get another decent deal without this extra complication?

imo, close to retirement deals like this are not a good idea.

lovely and tempting as it is to be "given" money by the family, it'll have to be repaid someday by someone, and with such a small pension your Mum risks not having a home over her head just when she needs to be easing into retirement.

i.e. should you lose your job, and be unable to service your own, let alone your Mum's mortgage, then you all end up homeless for "a step up the ladder".

monkeyalan_2

we're porting our current mortgage but would have had to find £20k cash to just borrow £10k to make the max 90%LTV you can get now.

the repayments aren't a problem and we plan to remortgage our new property when interest rates rise to the point where our 1.5% + the new £40k mortgage
(at @ 4% ) make it the most financially sensible option, i'd guess in the next 3 or so years , by which time we'll have paid a good chunk off and be able to cover whats left with a 90% LTV and pay the 40k off early anyway.

the 40k mortgage will be covered by insurance by me and the gf for job loss etc so thats not a worry really.

I was just unsure whether banks were happy to do this sort of lending even tho we all have A1 credit scores and me and the missus have a highish amount of disposable (ha!) income.

It's by far the cheapest way for us to do it.