Mortgage choices for 66 yr old

Jenniefour

Sorry the lady concerned now had poor health - and having a mortgage of 65% LTV is not a good position to be in at age 62. Is there any possibility that her own children can make the mortgage payments between them? Or would she be able to take in a lodger to help with the finances? Would she be able to live with one of her childern? I think going into rented accomodation at her age with health problems should be the last resort - I imagine she needs as much security and certainty as possible. Sorry, and no offence intended, but trying to protect the childrens inheritance, in my opinion, is the last priority in this situation. And may well get in the way of finding a solution that meets the lady's needs.

Mojisola

k-hkr wrote: »

Hi, a family member has recently fallen ill with heart problems that means she can no longer work. She took out a mortgage about 4 years ago over 15 yrs I believe. She has been told she will get pension credits and has applied for carer allowance but is looking at possibly only £140/week income. Her outgoings are about £500 a month for household bills and mortgage.

I don't understand this bit. She would need to be caring for someone else to claim carer's allowance but it doesn't sound as if she's well enough for that.

See if she will let you see all the paperwork to do with the mortgage. It doesn't sound right that she was given a mortgage that wouldn't be paid off until she was over 70.

k-hkr

Actually it is not carers allowance but attandance allowance (£47/week). She had it declined anyway so has to appeal now after she sees the specialist at the hospital next week. If she could get this then she would have nearly £200/week so should be ok if she can get an interest only deal on her mortgage somewhere without being fleeced.
Her kids aren't in a position to take her in unfortunately (and that would be the last, last, last resort anyway) and still rely on her to bail them out, even at her age - yeah I know!

The wife had a google session about mortgages for older people and there actually plenty out there with schemes for interest only mortgages she says, but I will have to look to check criteria for LTV etc. There are 2 govnt schemes as well she said so can check those as well.

Basically what happened was that around 8 years ago she sold her house, at the bottom of the housing market, and moved south for work with her daughter into rented. The bit of money she made on the house soon went and then the daughters job went so they moved back up here into this current house when she was about 62. I don't know how she got a mortgage but she did, and about 90% ltv! Deposit came from money left to her by an old lady she had cared for for many years. The daughter then fell out and moved out, but not before fleecing her, so she carried on working to service the house etc and now has had to pack in because her heart has just about packed in. It is a sad story to be honest.

I fully agree that if I were in her shoes I would just be thinking about selling up, renting somewhere and living as long as possible, or if possible to stay where she is then stay but not at expense of being able to have a few pennies left at the end of the month to live with and never mind having money to leave the kids as they have had plenty out of her while she was working, even as adults!

Jenniefour

k-hkr wrote: »

Actually it is not carers allowance but attandance allowance (£47/week). She had it declined anyway so has to appeal now after she sees the specialist at the hospital next week. If she could get this then she would have nearly £200/week so should be ok if she can get an interest only deal on her mortgage somewhere without being fleeced.
Her kids aren't in a position to take her in unfortunately (and that would be the last, last, last resort anyway) and still rely on her to bail them out, even at her age - yeah I know!

The wife had a google session about mortgages for older people and there actually plenty out there with schemes for interest only mortgages she says, but I will have to look to check criteria for LTV etc. There are 2 govnt schemes as well she said so can check those as well.

Basically what happened was that around 8 years ago she sold her house, at the bottom of the housing market, and moved south for work with her daughter into rented. The bit of money she made on the house soon went and then the daughters job went so they moved back up here into this current house when she was about 62. I don't know how she got a mortgage but she did, and about 90% ltv! Deposit came from money left to her by an old lady she had cared for for many years. The daughter then fell out and moved out, but not before fleecing her, so she carried on working to service the house etc and now has had to pack in because her heart has just about packed in. It is a sad story to be honest.

I fully agree that if I were in her shoes I would just be thinking about selling up, renting somewhere and living as long as possible, or if possible to stay where she is then stay but not at expense of being able to have a few pennies left at the end of the month to live with and never mind having money to leave the kids as they have had plenty out of her while she was working, even as adults!

What an appalling and sad situation. So selling and renting may be the most appropriate solution after all. And when the money from the property sale runs out she will need to rely on the benefits system. Lodger idea wouldn't work?

k-hkr

Lodger? I don't think anyone could/would live with her to be honest. I know I wouldn't!! She is hard work on a good day.

As previously stated , my wife found a few snippets about interest only mortgages for over 65's so we are going to have a look to see if she meets the criteria and maybe then pass her onto a financial advisor/mortgage advisor to do the leg work. It really depends on her total income once she has everything she is entitled to sorted out. If staying put is affordable, and the only way that will be is with an interest only mortgage, then she will stay. If she does not have enough coming in to do that then she cannot stay. 'Simples' as they say. Thanks for the help anyway.

SouthCoast

Age UK and Housing Options:

http://www.ageuk.org.uk/home-and-care/housing-choices/thinking-about-your-options/?paging=false