Loan for Retired Couple?

rhys9918

Hi all
My father in Law wants to take out a loan (for £25k) over 7-10 years if possible.
They are 65/67 but have a very healthy income from pensions, so can easily cover payments etc.

Do you think there will be any problems in getting a loan. (When I say healthy, they are pulling in 60k pa from pensions).

[Deleted User]

I might be wrong but most if not all high st lenders DONT lend to the over 65`s
with that sort of income surely they can save?

rhys9918

They could save no doubt, but they want to lend me/wife the money as deposit on a house.

We are buying a house, but trying to get our LTV down as much as possible. Our house is up for sale, but do not want to have to wait until it sells.

dmg24

woodbine wrote: »

I might be wrong but most if not all high st lenders DONT lend to the over 65`s
with that sort of income surely they can save?

Some will, but I think the OP's plan is not a good idea at all. Patience is a virtue!

rhys9918

dmg24 wrote: »

Some will, but I think the OP's plan is not a good idea at all. Patience is a virtue!

What do you mean by that?

yorkshire-lad

rhys9918 wrote: »

What do you mean by that?

i think what they mean is for you to save up for the deposit, and not to put this massive commitment on your parents at this time in their lives.

BTW, to answer your original question, i have had a quick look on the net and it seems most high street banks etc will not offer to over 65's.

rhys9918

I will do some searching on the net regarding their age/lendability!

But what would be the point of us saving for the deposit, when I have the equity in my current property which has just gone on the market?

Emmzi

they probably can get a loan

but you don't NEED the money so IMHO it seems a bit mean.... I hope they spend their pensions on gin and cruises (I wish my parents would!)

rhys9918

so how do you figure we dont need the Loan?
We have found a perfect house, in a better area for our kids to grow up in, but cant raise a deposit until we sell the house!!
We only propose to loan the money from them until our house sells, then pay them back immediately (inc costs a little bonus for their effort).
In a dream world our house would sell, without problems, and we can all sign and exchange contracts in fairyland on the same day. Sadly this isnt going to happen!!

Emmzi

so go to your bank and discuss open ended bridging, with parents guaranteeing the loan if that makes it cheaper.

and you don't NEED to move - you just WANT to. Cut your cloth to suit your budget - not your parents. They've worked hard and deserve fun/ security/ to pay for healthcare if they need it. What happenes to them if your house doesn't sell or you make a loss or they have a stroke tomorrow?

rhys9918

Ah well, I thought this site was about saving money (clues in the title I thought).
The words bridging and loan together sounds expensive to me, personally I would rather the in-laws make a little profit out of me rather than the banks!

Really cant see how a short term loan from the 'bank of mum' and dad should be so frowned upon on a site like this.