Parents Mortgage Advice Needed

Kwaker_Knacker

My parents bought their Council house approx 6 years ago. In my view, this was about 20 years too late, but nevermind, they took the plunge eventually. As they were around the 62 years old mark when they applied for a mortgage, lots of places wouldn't entertain them or would only give them it over 10 years, but eventually Santander gave them a 25 year repayment mortgage.

Both my sister and myself think they should now be looking to get a smaller place (no need for a 3 bedroom house with it just being the 2 of them). However, my dad looked into things with Santander last year, and was told with them both being in their late 60's there was no way they could get another mortgage. They owe about 46k, house is worth about 85-90k, and the houses I'd like them to go to although less bedrooms are in a nicer area, and are about 100-110k.

What I want to know is, should my folks wish to move, is it possible for them, my sister and myself to be "lumped" into 1 pot income wise to get them into another mortgage (the house would be left to me and my sis when they die anyway). Both myself and my sis have our own mortgages but have disposable income that could be put towards my folks payments even tho my folks have always paid their own way since taking the mortgage on.

I know nowt about these matters and any help or advice is greatly appreciated.

Thanks in advance,

K_K

kingstreet

Any mortgage including your parents is likely to have to end on or before the oldest's 75th birthday. This will cause you problems with affordability with such a short term open to you.

Kwaker_Knacker

Thanks for that.

So is there anything stopping me and my sister arranging something (finances permitting) without our folks being included on the mortgage at all even tho it'll be their place?? Will a lender start quoting buy to let even tho technically we won't be renting it to them??

Thanks,

K_K

kingstreet

They can't be named on the deeds if they aren't party to the mortgage. If they put the deposit down on a house they don't own, you've then got possible deprivation of assets issues if one of them needs care at some point in the future.

I'm not sure if there's a "lifetime" mortgage solution for you. These are products designed for older people and include equity release deals. You need an IFA for advice on these, or a mortgage broker with extended permissions.

One of the others might have an idea for you, but Saturday afternoon's not normally a busy time on here and I'll be concentrating on something else in a bit, as we're "away" today and the net is the best way of keeping up with the score...

betmunch

there is potential for your to get a residential mortgage for a dependent relative, second home, or a BTL for a family member. You need to get some advice from an Independent Mortgage Advisor on the subject as theres an awful lot more to it then just can you afford it.

Kwaker_Knacker

Thanks for the replies. I'll look into it a bit further once I find out whether they're up for the move.

K_K