Help for my mum

holly_hobby

Try Yorkshire for a mge term into retirement - her income and she will obviously need to meet their criteria.

There was a thread not long ago about mges into retirement - have a search though and see which lenders are discussed in there.

Other than that, go and see a whole of market broker for some general advice (check if there is a fee for this).

Hollly

McKneff

Why not a nice couple of lady lodgers to help her overpay the mortgage.

Why is selling not an option.

Thrugelmir

B4rber wrote: »

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.

Not sure that the lump sum has any relevance at this point in time.

The current situation is that £73k is owed. Your mother has a pension income of around £14.5k. So no lender is not going to agree to remortgage the required funds in these circumstances.

I assume the mortgage is in joint names. As part of the divorce settlement she has to take over the remaining liability in her name alone.

kingstreet

B4rber wrote: »

i am aware that the minumum mortgage is 25, they wont give her that because of her age

Where've you got that from? Some lenders might have a minimum loan of £25k, but not all.

How many lenders have you spoken to? Any whole market/independent brokers?

According to Mortgage Brain, there are 366 broker and direct products matching the requirements of an individual as described;-

63 years - retired
Pension income £14k
11 year term
£23k repayment mortgage on £220k value
Rates range from 1.99% (£194 per month) to 6.69% (£251 per month).

What is more important at this borrowing level, there are six deals with no upfront legal, arrangement, admin or valuation fees. One or two have £225 discharge fees when she pays the mortgage off at the end of the term, or sooner if preferred.

Annisele

I can't work out whether your mother wants to remortgage for £73k now and pay off a lump sum of £50k fairly soon, or whether she wants to get a loan now for £23k.

The first is likely near-impossible - £14.5k income just doesn't support it. The second, as kingstreet says, is very doable.

Gorgeous_George

AIUI, the current mortgage is maturing and mum needs to clear £73K. Of this, £50K will come from savings and she needs a further £23K.

Matt, could you raise the money agsinst your home? You could formalise the loan to your mum and take a share in her home as security.

Alternatively, there will be lenders who will advance a mortgage to retired people. And I like the lodger idea though a toy boy might be more appropriate.

GG

B4rber

Kingstreet - Thanks, short answer to looking into this in any detail is no, you have probably given me the answer that i am looking for.

I have come to this forum without doing any homework on this, its all happened quite quickly, and i hoped I could short cut a lot of the research by posting here (and being pointed in the right direction). I have little knowledge on this subject!

My mum doesn't want to sell at the moment, believe me i have tried to explain from the start it would be the best option.. but the whole situation together means that she just wont. I have asked her to keep on the lookout for a smaller place in her current area (where she wants to stay), but there is nothing at the moment.
A lodger wont work either, although if the right person came about then it could work and i will put the option forward.

Thanks again to Kingstreet and Holly

Matt