Help!!!!

sparky001_2

Can anybody help? My Dad wants to buy his council house,it's been valued at £56,000 but he can have it for £17,000 with discount.
He can only afford £7,000 from savings, should he try for a morgage for the other £10,000 or would he be better just getting a loan?
His bank has offered a loan over 5yrs at 5.9%, which i thought was quite good. He is 63 next year and is still working so he would like to pay it off asap. he will be a first time buyer.

Mrs_Optimist

I shuls imagine that he will be concidered too old for a 10 years mortgage. Why does he want to buy? When it is eventually paid off what does he want to do with it? Presumably he has lived there for a long time so what can he gain by buying it now?

clutton_2

i would take the bank loan - many lenders have a £20k minimum on lending on property, otherwise they don't make much money presumably !

Why shouldn't he want to buy it ?

DrFluffy

Mrs_Optimist wrote:

Presumably he has lived there for a long time so what can he gain by buying it now?

Presumably a little security in his old age, having something to leave your children, getting to an older age and wanting something he owns, an offer to good to be true, etc.

BobProperty

clutton wrote:

i would take the bank loan - many lenders have a £20k minimum on lending on property, otherwise they don't make much money presumably ! ....

Many lenders have a £25001 minimum to avoid the Consumer Credit Act.

clutton_2

i was able to borrow £20k for a mortgage from a bank a couple of years back.

munki_3

Hi Sparky001, Most mortgage companies require that you pay of your mortgage in full by the time you are 65 so if your dad is 63 that may not be an option.

A loan maybe the only other way or alternatively get your dad to go see a mortgage advisor to see if there are any other options for him.

Good luck to your dad anyway and hope he manages to find a solution!!

clutton_2

a mate has just remortgaged her home, and got a good deal from Halifax which takes her up to 70 years of age - she did have to prove her future income after retirement.

roswell

if its 17000 and he has £7000 savings that leaves 10000 is there anychance you could raise this sparkey001 ?? with an agreement or your name on the deeds ??

What about other family members helping ? surely converting 17000 into 57000 would appeal to anyone.

UK007BullDog

He wont get a mortgage, unless he borrows more than £25K and he can prove that he can pay the monthly mortgage payments when he is over 65.

Otherwise a loan is the only way for him. The loan his bank is willing to give him is quite good.

I am also intreagued why all of a sudden he wants to buy, but can see the profit he might be able to make if he sells the property in 3 years or longer. It would be a wise move and a smart investment. Also a nice inheritance to pass on to his kids or grandkids.

The amount seems quite low though. What kind of property is it? If it is a cement property then there should be some caution. Also if the property is a flat over 4th floor with balcony access (ex-local authority). Then in the future it might be difficult to sell on as it is more and more difficult to get a mortgage for places like that. Only cash buyers would be able to pay for it. But really it seems a good move to buy.

clutton_2

i think it is now 5 years before someone can re-sell an ex-local authority property without incurring penalties.