Hopefully a straight forward query !

JG_Alfie

Hi all,

The inlaws are looking to raise some money against their current property. Situation as follows:

• Both still working
• Aged 62 and 63
• Looking to raise circa £20k
• Property value circa £150k
• Currently mortgage free and have their deeds
• £20k to be used to clear a biut od debt and make some modest home improvements
• Having reviewed their finances they are happy to meet a max of £100 a month payment in their retirement

They recently had an appointment with Aviva where they discussed some available options including a hideous compounded interest option :eek:.

I feel that a mortgage would best suit their needs, either on an IO basis or repayment - are many lenders doing mortgages like this at present for their type of situation?

Any/all thoughts gratefully received !

_Andy_

hi and welcome to the forum
How long (in years) are they wanting to take the mortgage out over?
If it was IO how would they intend to pay the capital back?

JG_Alfie

Hi Andy and thanks for the warm welcome.

If IO the only possibility for payback would be through sale of property at second death (or before if the remaining decided to sell/downsize). They have no other savings or investments at present nor could afford to start any. I'm not sure this is acceptable from a lenders perspective?

Repayment on a 25 year basis would probably make the repayments roughly affordable on an average current rate, but obviously that term would take them into their late 80's. Again, not sure how acceptable this would be...