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Mortgage or Secured Loan
shazzab123
Posts: 6 Forumite
Hi,
I am very confused! My Mother wants to raise some money from the collateral in her house. She owns outright approx vaule £120,000 and wants to raise approx £30,000. She is 78 years old and until last year had a totally unblemished credit record. Unfortunately she moved house and was not aware of a Tesco Credit balance of £10 (which somehow got lost in a balance transfer) which they eventually defaulted her for as she had not responded to their post. Now she has found that her credit rating has diminshed considerably but wants to raise this money. Is she too old for a mortgage? Would a secured loan be better for her? Either way, where does she start to look for a good deal? Help please
I am very confused! My Mother wants to raise some money from the collateral in her house. She owns outright approx vaule £120,000 and wants to raise approx £30,000. She is 78 years old and until last year had a totally unblemished credit record. Unfortunately she moved house and was not aware of a Tesco Credit balance of £10 (which somehow got lost in a balance transfer) which they eventually defaulted her for as she had not responded to their post. Now she has found that her credit rating has diminshed considerably but wants to raise this money. Is she too old for a mortgage? Would a secured loan be better for her? Either way, where does she start to look for a good deal? Help please
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Comments
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For what purpose is capital being raised?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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A mortgage is a secured loan, few lenders will now lend a "traditional" mortgage given her age, although it may be possible provided she has the income.
Other alternatives could be that the family lend her the money and place a 2nd charge over the property, or she could consider an equity release/lifetime mortgage.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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