Mortgage or loan for asset rich, cash poor?

Rate_tart?_sticks_and_stones.....

Hi, Not sure if this should be posted under mortgages or loans. My 72-year-old mother has a flat worth around £60000. She needs to spend around £3000 on chimney repairs and to have a low-maintenance garden designed. What is the best way for her to borrow this sum? Would she be offered a secured loan or a mortgage (I can act as guarantor and meet the monthly repayments). She has never had a mortgage and her only income is from a small widow's retirement pension + her state pension. She has no other savings. I would really like to be able to help be more comfortable but I have no savings either. Any advice would be gratefully received. ???

lisyloo

She would probably not get a mortgage for that amount.
There are different legal arrangements that apply to loans below £25K which make ist unattractive for lenders.
Also I suspect the legal costs of registering a charge on the property and doing surveys would be not worthwhile for that amount.

The best way to go would probably be to get the cheapest possible loan available.

Pal

Has she discussed it with the CSA? She might be eligible for assistance with the chimney maintainence if it is dangerous. A long shot but worth a look. She could also have her benefit entitlement confirmed at the same time.

The obvious thing to do is to save for the repairs or the garden work.

Alternatively if the chimney work is urgent could you pay for it on a o% credit card and then card tart the balance to new o% deals until it is paid off? It is a higher risk strategy though so be very careful.

Rate_tart?_sticks_and_stones.....

Thanks Pal. The chimney is had an 'internal' leak into the neighbouring flat which my parents' former local authority landlord 'fixed' by removing the coal fire and installing a back boiler 12 years ago. We up-dated Mum's central heating with a combi boiler so now the defunct gas fire and back boiler need to be removed and the chimney needs a lining to be suitable for gas (Mum really wants a living flame fire) so it wouldn't qualify for any grant aid.

We've already 'max'd on the 13 month Barclaycard and 9 month Halifax deals to install new kitchen, central heating, carpets and decorate all Mum's rooms and I doubt that she'd qualify for 0% in her own right. We also couldn't manage to repay over 9-12 months on top of our other interest free 'loans' courtesy of B/Card and Halifax! We've had her benefit checked 3 times over the past year...she's getting her full entitlement. Please don't start me off on how it was possible for my Mum and Dad to have worked so damn hard all of their lives and have so little to show for it....! However at least my Mum has realised her ambition to become a home owner, I just wish I could do more to make it better.

Thanks to all of you for your help so far.

budgetflyer

Some electric fires look almost as good as the gas ones. If you have adequate central heating then I assume it would probably only be for cosmetic purposes.
I would at least have a look at these before spending a lot getting the chimney sorted.
Alternately some living flame fires can be installed in situations where the existing stainless steel liner from the back boiler could be utilised.