How easy to obtain loan for Pensioner?

stoobyizzy

The maisonette below my sister has become available and she wants to buy it for my 92 year old dad. The estimated cost would be £100k. My sister would plan to put down £60k equity, however she would need to obtain a mortgage/loan for the remaining £40k, which she would plan to pay off with the proceeds of my dad's existing house once sold. Both my sister and my dad's houses are completely paid for. However, my sister is retired and although she has a very good monthly pension, do you think a bank would consider giving her a mortgage/loan for the £40k for a period of time? and if so what Banks should she consider?
Any advice would be greatly appreciated! As it would be far easier to look after my dad if he lived just below her.

jonesMUFCforever

How old is the sister?

stoobyizzy

my sister is 66.

[Deleted User]

a few years ago maybe,now?probably not

NeverEnough

I think your sister may still be able to get Bridging finance - ie to pay the £40K while waiting for the proceeds of your dad's house sale, using the house as security for the finance, but you really need a specialist broker to look into that for you - there are mortgage brokers who arrange this type of atypical finance - its worth looking into the bridging finance option, I think, as your dad owns a considerable asset and your sister is also prepared to put up 60% finance up front while the substantial asset is sold - given the right guarantees etc its not a huge risk area for a lender who does bridging finance, depending on the value of your dad's current home, of course. Hope you get it sorted - sounds like a good plan for your dad and his ongoing care.

jonesMUFCforever

NeverEnough wrote: »

I think your sister may still be able to get Bridging finance - ie to pay the £40K while waiting for the proceeds of your dad's house sale, using the house as security for the finance, but you really need a specialist broker to look into that for you - there are mortgage brokers who arrange this type of atypical finance - its worth looking into the bridging finance option, I think, as your dad owns a considerable asset and your sister is also prepared to put up 60% finance up front while the substantial asset is sold - given the right guarantees etc its not a huge risk area for a lender who does bridging finance, depending on the value of your dad's current home, of course. Hope you get it sorted - sounds like a good plan for your dad and his ongoing care.

Only a good idea if she can honestly and comfortably afford to pay the interest not just now but say if interest rates go up by 2/3 % next year.