Loan for Retired Couple?

[Deleted User]

rhys9918 wrote: »

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?

do what everyone else does and wait till you get a sale before buying

[Deleted User]

rhys9918 wrote: »

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.

read many many post on here that will tell you family and money dont mix well

rhys9918

Wish I had only asked whether they can get a loan or not now. Answer seems to be maybe/probably.

As for the rest of it, I look forward to buying the in-laws a holiday for their support if all goes to plan.

Lipic

Sorry, I don't post often and I don't know if I'm right but I thought you could take a lump sum from your pension? That's assuming that your parents want to do that of course.

It's nice of your parents if the want to loan you the money but it's a huge ask and something I wouldn't do. The bridging loan idea sounds like a good one. Good luck with the move.

Emmzi

yes, they probably can get a loan, butperhaps only fom their main bank.

my folks (70s) got a car loan last year. didnt need it but for some reason wanted to finance it that way.

Rupert_Bear

rhys9918 wrote: »

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!!

If the loan is to be paid back quicky I do not understand why the loan would need to be over 7 to 10 years. Can you not get a bridging loan rather than involving the aged inlaws.

My feeling is that if a financial instituation will not consider you then it is warning sign for your inlaws not to be involved.

margaretclare

To answer your direct question without all the 'shoulds' and 'maybes'....

With the sort of income you describe, and if their credit rating is squeaky-clean, yes, they could probably get a loan.

We're a bit older than them, income not as high, credit-rating impeccable, and I know we could get a loan if we wanted one. We could even have had a mortgage up to age 83!

jonesMUFCforever

Be careful - many banks will not lend unsecured money for property these days even to give to family as a deposit.
Have they actually spoken to the bank?

bouncydog1

If they own their own property, their own bank would probably lend them the money secured on the property - but what happens if they can't pay it back? As they have an income of £60k p.a. from pensions, one has to ask why they don't have £25k saved?

I also agree with other posters and would not even consider my family lending me money if they had to borrow it to do so - you should now be financially independent and not having to rely on your parents to lend you a deposit.

Different scenario entirely if they had the money available to lend without having to borrow it, but the sad truth is they just don't have the £25k available, so presumably they quite properly live life to the full. If they don't have savings on this level of income (as presumably their outgoings are quite low) then it is going to be hard for them to demonstrate to any lender as to how they are going to repay the money.

And what happens if one of them suddenly falls ill and needs an operation and wants to queue jump and go private? How would you feel then if you couldn't produce the funds immediately to help them.

Either get a bridging loan if you are that sure that your house is going to sell and pay the market rate or wait - there will always be another property available, probably better than the one you have seen now.

nicechap

So the OP wants to buy a 2nd house with his parents taking out a loan for the initial deposit.

What are you going to do with the 1st house? & its mortgage? Renting it out could be a minefield, kepping it empty seems an extravagance.

So in order to have this new lifestyle they'll be new mortgage payments, old mortgage payments and new loan repayments.

Maybe a bridging loan is a cheaper option and much safer for OP's parents property and pension.