Joint mortgage with 68 year old?

Xevius

We've found a property with a 'granny annexe' for £188k that my dad and me/husband/son can all live in. Dad's selling his house and putting £94k cash in, and we're aiming for a £94k mortgage (which we know we could get if it was just us). We had a brief chat with a bank advisor who suggested that all 3 of us would have to be named on the mortgage, which didn't initially seem a problem, until he said that my dad could only be on it until age 75. Does this mean that we can only get a 7 year mortgage :eek: or that it's 25 years, but dad isn't liable for any repayments after the first 7 years :T ?

My dad isn't bothered if he's named on the mortgage or not as he won't contribute financially after his £94k deposit, but he does want to be named on the deeds. Any other suggestions? I gather from earlier post that he can't give us deposit and live at the house without being on the mortgage?

I am waiting for a phone call from L&C, but want to understand our options before we talk to them!

Ian_W

I think it is going to be a problem for you BUT lenders have different criteria when it comes to age. For example, Coventry BS say this in their lending criteria T&Cs,
... are over 18 and will be no more than 85 years old at the end of the mortgage term ... so L&C or whichever broker you use may have to shop around a bit to get a suitable product and it may not be the best interest rates around.

As your Dad will on the deeds he will have to be on the mortgage as a safeguard for the lenders in case the loan is defaulted on. If he wasn't they'd have difficulty taking the property with a part-owner not owing them money!

This is not a particularly straightforward case so I would consider a face to face local broker who you can talk the options through with, rather than a telephone based one. No expert but that would be my thinking in this instance.

HTH and BoL.

Xevius

Thanks for the good advice. I'm going to find a good local broker to visit. Will have to work out the figs, but may still be able to afford a 17 year mortgage!

itsakidsworld

I agree with what Ian says as it could be a difficult one this.

However, in your favour is the fact that you only require a 50% mortgage which will open more doors for you than if you needed 90 or 95% LTV.

A good broker will be able to sort this for you and also get you a good rate.