Help for my mum

B4rber

Hi,

I will give a brief outline of the predicament my mother is in, and will post more details if requested.. overall all help greatly appreciated :T

Had to buy out the house worth roughly 220 (4bed detached)
73k left on the mortgage
50k savings that will be released buy the end of the year
Just retired
Pension worth about 1.2k a month

Current provider of mortgage will not allow my mum to take out another mortgage of 25k which she wants to spread payments thinly up to age of 75 (currently 63).

I am at a loss, I live far away and need some options at least for her to investigate. It doesn’t sound like she will get a mortgage at the rate at which she can still live comfortably over the time-scale she wants.

Thanks in advance

Matt

McKneff

Just curios, why does she want another mortgage at her age,
Why not just use half of her savings.

Is the £1.2k pension private or private and state pension combined.


I dont understand your first point = had to buy out...............

B4rber

McKneff wrote: »

Just curios, why does she want another mortgage at her age,
Why not just use half of her savings

She owes 73k, and only has 50k savings

McKneff wrote: »

Is the £1.2k pension private or private and state pension combined

combined

McKneff wrote: »

I dont understand your first point = had to buy out...............

Divorce

I have thought about her asking for a loan, but would you get a loan to pay off the rest of your mortgage?

Matt

CLAPTON

I can't understand what you are saying

can you explain it all a little more clearly

Mojisola

It might not be the answer she wants but selling the 4 bed and buying something smaller could solve the problem.

dimbo61

If she can find a lender to give her a mortgage of £23K to repay the rest of the outstanding mortgage she will then struggle to live and maintain a big house on her own.
My dad sold his old 3 bed house and moved into an over 55,s apartment and he loves it!
now chairman of the residents assocation, helps with the gardens, pays £400 including heating/lighting.
He has been on loads of hols with money in bank

ViolaLass

The issue appears to be that your mother wants a mortgage for £23k spread over 12 years. Is that correct?

Why does she want it spread so far? When does the current mortgage end? Could she sell and downsize?

hcb42

Has the current lender simply refused as they have a lower lending limit?

It might be as simple as that - i.e. they might have a lower limit of £25K or something

holly_hobby

Your post is confusing and unclear, but I think what you are trying to say is ...

Mum owes a 73k mge, but only has capital of 50K to repay this debt at redemption - resulting in a 23k shortfall, which remains owing to the mge lender.

Mums lender will not let her extend the mge term (with the shortfall turned into further borrowings) - therefore she is looking to seek a remortgage for 25k (min amount a mge can be advanced on), to which she will add 48k from her savings, which together with the new 25k advance, will settle the os mge with her current lender of 73K, allowing her to redeem and commence her new mge of 25k with her new mortgage lender.

Is this the correct situation ?

Holly

Thrugelmir

Mojisola wrote: »

It might not be the answer she wants but selling the 4 bed and buying something smaller could solve the problem.

Seems the most appropriate suggestion. Rather than tying up her lump sum savings.

Retirement often comes as a shock as income levels fall. So doesn't seem the right time to be taking on additional financial commitments.

B4rber

Ok guys,

Basically what i am saying is she needs to find the extra 23k, i am aware that the minumum mortgage is 25, they wont give her that because of her age, selling is not an option.

So... all im asking is how does she find a 25k mortgage or loan. I was hoping for some 'out of the box' answers given the fact she has a 50k lump sum coming.

Im sorry if there is a slight lack of detail.

Matt