Will she get a mortgage?

skylight

I am helping Mum in buying her a house. She is not confident enough to do it all by herself thus it's all fallen to me; who has never bought or sold before so please forgive the odd questions.

The main questions are when should she start looking for a home and would she even get a mortgage?

She is employed FT and earns c£30kpa - her job is relatively secure. She's 55 and will be buying on her own. She is due £170k from an inheritance (that has just hit probate) and is looking at spending £140k of that as a deposit and getting a small mortgage for £50k maximum. Her credit rating is good/Excellent (I assume; she has one credit card and 2 BTL-mortgaged properties co-owned with her brother and doesn't owe anything else - I will be checking her credit file later this week). The only thing she is definate on is getting a repayment mortgage.

I have spent a few weeks lurking on these boards and really think its best to get a 10-15yr repayment mortgage and overpaying to the amount she currently pays in rent to reduce the term to around 7yrs instead (if no restrictions). Of course, as per the first question - can she??? Is she too old? She is looking for something that will see her into retirement so although she could buy a flat outright in this area, that wouldn't be ideal for when she gets older.

herbiesjp

She can only really start looking at properties/mortgage once probate has been settled and funds released.

Then, she can move onto the next step of looking at properties/making offers on them.

However, as you rightly say, her circumstances will limit what is available i.e in relation to mortgage length, overpayments etc.

There are lenders that will agree this quite easily, you just need to find the best deal for her based on the final figures you are looking at.

If you are confident, you can do your own research on some comparison sites. Alternatively get in contact with a good whole of market adviser and let them come back with some options.

beecher2

I'd suggest you go to see an adviser together, so as all the decisions aren't left to you.

getmore4less

With 2 BTL even shared she should have a clue on this stuff.

I would check the BTL out and see what is going on there as that should be adding income.

skylight

BTLs are not bringing in any income worth having (its a nominal amount that gets put towards gas certificates/repairs etc)

Thanks for your advise. I will tell her to wait until probate is back and get the ball rolling then.

getmore4less

If they are making no money are they paying off capital(thats making money)?

If not why not get out of the BTL and be mortgage free.