Mortgage for older low earners

mark206000

Hi Everyone

I'm looking a bit of advise for my dad and myself also.

Our house is worth about £135000 or so at the moment and there is about £40000 left to pay on the mortgage.

Problem is he lost his job a few years ago and has not been able to get anything else. He has taken up window cleaning which he enjoys doing but is quite hard going so does it part time, gets about £6000 per year doing it. At that time I was still living at home so I put my name to the mortgage and am paying it while I live here however I'm going to be moving out this year sometime.

So are there any mortgages available for him, he is 55 and my mum who lives there is 52, she earns about £3000 part time also which could be taken along with his income i'd guess. Being 55 does that limit the mortgage length to 10 years ? Which would mean the payments would be too high, or are longer mortgages available ?

I could stay on the mortgage also, but how would that affect me getting one of my own, would it just be an additional outgoing or have some other bearing on it ?
I am probably looking at a £140k house with a £30k deposit with the girlfriend maybe at the end of the year.

Thanks for reading !
Mark

Senior_Paper_Monitor

First questions is does he keep books - declare income ?

If he does (and no other problems in the woodwork) then finding a mortgage over a longer period, therefore lower payments - assuming they are on a repayment basis - should be do-able.

Unfortunately, if you stay on the mortage it will certainly impact on what you can afford (because you remain responsible for the whole debt potentially on your parent's mortage) - however, unless your mum/dad can convince the lender of their ability to pay (see previous comment) without you then they will not release you from the mortgage liability.

Selling and downsizing may have to become a consideration.

mark206000

Hi Senior, thanks for the reply.

He does declare his income, as in pays any tax he owes if that what you mean. Doesn't pay much tho as he only earns around personal allowance.

We've been looking and can probably pay the mortgage down to £30k on the house, it's currently worth about £135k (not a fantasy figure, but selling prices in the area !)
An endownment of £10k is due to him in a few years also. But if he is unable to get mortgaged what affect would it have on me if I stayed on the mortgage if it's at £30k.

I earn £26k and my girlfriend £17k, we'll have saved £30k by the end of the year and are looking at houses around £140k-150k. Should we be able to get a mortgage for this if I was still on my dads house ?

Thanks again !
Mark

herbiesjp

How much is the mortgage payment on the other property?

Pontentially you could with some lenders, get another property with your girlfriend, but it will also depend on the whole scenario

mark206000

Thanks for the reply herbiesjp.

I'm paying £305 per month on a discounted tracker coming to an end this April, 3.5% currently. I think it's a 20 year mortgage.

We can reduce the mortgage to £30k when the deal is up from the £55k which is outstanding now.

I would expect the monthly repayment to be around the same if not reduced slightly, because I can't see us getting another 3.5% deal !

Thanks,
Mark

Conrad

Longer terms are possible with some lenders.

Yes your having a mortgage will be considered if you alone want another mortgage later, but people to achieve second mortgages given the right blend of factors.

You say your Dad declares around the Tax threshold so the earnings will be very low. Some lenders can cosider benefits / credits.