Mortgages for the elderly

pamstretched

Does anyone know which companies give mortgages to the elderly.
I have phoned a few who put 65 years old as their cap.

Thanks

Senior_Paper_Monitor

Would need to know a great deal about your financial circumstances to know the answer 'for you' - you need a mortgage broker/advisor

kingstreet

Something like the Halifax Retirement Home Plan, which is only available via IFAs, could be one answer.

A retirement home plan mortgage is a lifetime mortgage scheme conducted on an interest only basis. No deduction is made in the affordability calculations for the cost of an investment. RHP mortgage is only normally available to applicants over the age of 65. There is discretion for applicants under 65, in circumstances where they are retired with no earned income. Funds can be used for any purposes. Maximum LTV - 75%. Retirement home plan has been classed as a lifetime mortgage scheme by the FSA so is subject to the specific sections of MCOB.

How it works

This is a lifetime mortgage where the mortgage balance never decreases. It must be repaid at the end of the mortgage term or when the property is sold, if this is earlier. Once the mortgage is repaid, any surplus sale proceeds belong to your client or their estate.

To make sure your clients understand the features and risks, you must provide them with a personalised illustration.

Client already has a mortgage?

If your client already has a mortgage with any lender, they can transfer it to Halifax Retirement Home Plan, and take advantage of a lower, interest only, monthly payment.

Monthly repayments

Your clients need enough income to meet their monthly repayments and other associated home ownership costs.

If they haven't already retired, they'll have to continue to pay the monthly repayment once they retire when their monthly income may reduce.

To use retirement home plan for home purchase or home improvements, DWP (Department for Work and Pensions) benefits may be suitable income.

Terms

Minimum age: applicants must normally be age 65 or over
Maximum term: 40 years
Maximum loan: 75% of property value. Other restrictions may apply depending on the product selected
Basis: single or joint life, fixed or variable rate interest only mortgage
Interest rates: rates will depend on the individual circumstances of the applicant

An IFA would be able to give you a bigger choice and full advice too.

pamstretched

Thank you
this Halifax one could work I will make enquiries

Conrad

Equity release might be better as you make NO payments. Veware unusual situations like having part of the property let out. Still doable but tricky.