Retired, need £30k for house move - best options?

Tracyk_2

My mum is moving house and needs a top up of £30k.

She has this amount in savings - but will leave not much left after this.

She has been recommended the Halifax Retirement Home Plan with £1500 fee to Halifax and £500 fee to the IFA.

Her partner is still working and she is working part time - although retired - so has enough monthly income to cover the mortgage.

But I'm not sure if this is the best product - will she be tied into the mortgage for 40 years??

Any other ideas?

foxwales

The 40 year period is the maximum term of lending, therefore it may or may not be the full 40 years, but that will be dependant on their earnings and the repayment amount needed to clear the mortgage within a reasonable term.

If your mum is buying a new property and it has good potential for increasing in value in the future, e.g. good local amenaties, schools, transport etc, then it would be better for her to use her savings and see this as an investment opportunity which will tie the cash into the house.

The additional income they have from working can then be placed into a savings account for an emergency fund or rainy days etc, so they have some financial security.

Provided the property being purchased has equity in terms of loan to value, then your mum could consider an equity release option in the future if she needs to access money.

This option would aleviate the problem of them being tied into a substantial long term loan into their retirement, whilst also maintaining some quality of life in terms of access to liquid finance in terms of their available income, which they would have spent on mortgage payments.

So use the savings is best.