Mortgage for Temp Worker??

izools

So Mother has been trying to remortgage. She'll be 61 next month and wants a £62K mortgage, repayment, 14 years, to end on 75th birthday. Has perfect credit history, low DTI and limit to income ratios - credit file is perfect.

She has temped for the local authority for ~ five or six years now. She receives a steady income helping them with temporary assignments.

She was advised by Nationwide, that further to underwriting, they will lend her £42,000 based on her state benefits (!?) but nothing extra for the wage she earns as her payslips state "Casual Worker". She hasn't been out of work atall in the last five years as a "Casual Worker", it is a steady income, and if taken into account would mean she can borrow upto £102,000 when she only needs £62,000.

Two questions:
1. Is it worth appealing? (I guess, "Duh, of course")
2. Are there other lenders out there more lenient on temp works who also allow the mortgage term to be extended to the applicant's 75th birthday?

Thrugelmir

There's no right to appeal. Each lender will set their own criteria.

A temporary worker is just that. No contracted terms of employment. So any good lender would decline the application.

BYALPHAINDIA

Or......They aren't paid nor maybe 'Intelligent' enough to think 'Outside the box' and simply read by the figures in front of them without looking into it further !!

hcb42

they might not be intelligent enough to think outside the box, but if they were to do so, and the OPs mother then lost her job and was unable to keep up with her mortgage payments, the more prudent MSEr might think they were reckless in the first place by lending to her.

OP, does she need to remortgage? i.e. is the rate due to end, or is it a shortfall in endowment that is causing this?

izools

The situation is that she had to stop paying into her endowment policy in the 90's due to raising my brother and I as a single mother and the welfare state (rightly) not paying enough to cover day to day expenses and an endowment.

She has £110K equity and has the option of selling up and renting until the (inevitable) but at present has income from many sources - right now, wage, working tax credits, state pension (her birthdate fell before the date where they raised the retirement age), disability living allowance, and income from lodgers.

Obviously her income from lodgers wouldn't be taken into account as that would have to be kept under the radar as far as a residential mortgage is concerned but the reality of the situation is that even into retirement she would have absolutely no trouble atall affording repayments.

Her prediciment is that her current lender want the mortgage of £58K cleared within 20 months as that was the term. Keeping the property would be a better alternative to selling up, as maintining the status quo with a repayment mortgage is easily affordable and of course, most suited to the temprement of someone encroaching on their final plateau of life.

Bottom line is, she losses her job, and has no tennants.

Pension credits, state pension, and DLA easily cover the new repayment mortgage costs and day to day living anyway without the slightest issue.

The issue is finding a lender that meets the criteria I alluded to above.

EDIT: There is of course, the less preferable option of selling up and having £110K in the bank to invest wisely and live off through the remainder of her working years and therafter, retirement, but of course having that amount of capital in the form of liquid assets would gravely affect her income - in regard to state benefit eligibility, and whilst it could support her, it would be for a very definite and determinate timeframe which of course, no one could predict, where the termination point is...