Remortgage for a buy to let

jmarky

Hi, wondering if anyone can help...

My mum owns her house outright, worth about 180k,

She wants to retire but would struggle on her pension,

I have suggested remortgaging the house and getting about £40k cash to buy, renovate and rent out a small flat,

The rent would cover the mortgage and give her a bit extra, AND she can sell the flat in a few years and retire comfortably.

BUT, she's 61 so will she be able to remortgage the house at her age? She would need a long term mortgage, e.g. at least 20 years so the rented place is profitable for her. Will mortgage companies allow her to do this?

Or, could I be a guarantor for her on a mortgage even though I have one of my own?

Thanks in advance!

Jenniefour

Sorry, but that sounds like a crazy idea to me - too many risks for a person of your mothers age. You're assuming property prices will go up - when all the signs right now are that they're going down, or at the least stagnating. If your mother wants to increase her pension then why not get a lodger, or sell the house and downsize to release a chunk of money to supplement her pension.