Mortgage that runs past retirment age.

sarahw2012

My mum has torn an ad out of the paper from 'claims for you' titled 'Mortgage Mis-selling', she fits the criteria as she was sold a mortgage that runs past her retirment age. (72) Has anyone had any successful experience of this? It just rings alarm bells to me!! but I really don't want my mother to have a mortgage at that age.

Credit-Crunched

sarahw2012 wrote: »

My mum has torn an ad out of the paper from 'claims for you' titled 'Mortgage Mis-selling', she fits the criteria as she was sold a mortgage that runs past her retirment age. (72) Has anyone had any successful experience of this? It just rings alarm bells to me!! but I really don't want my mother to have a mortgage at that age.

Are you sure her retirement age was 72? that seems very late

ILW

Was she senile when she took it out?

McKneff

I think youre misreading.

The mother has the normal retirement age, the mortgage will still be
payable till she is 72.

dunstonh

Claims companies went to town on this excuse some years ago and had some success early on. Once it became realised that it was just a try-it-on excuse that was being abused, companies looked into it more closely and you dont see it getting anywhere near the success it used to.

First thing to realise is that you can borrow into retirement. No rule breach there. No mis-sale. No problems.

However, if you bought the mortgage via a mortgage adviser and it was after 2004 (when mortgages became regulated) the mortgage adviser was required to make sure that you were aware it went into retirement and verify that you could afford it.

Many people do it to keep the monthly payments down before retirement and then use a pension lump sum to pay it off early when they get there or start to overpay later on when they can afford it.

Most people can add up simple figures and realise how old they will be when the mortgage ends. So, unless your mother is mentally incapable of understanding such things and she bought after mortgage regulation started in 2004, she doesnt have much of a case (and if it is pre-regulation they can refuse to look at it).

I really don't want my mother to have a mortgage at that age.

Tell her to increase her monthly payments.

There is no magic pot of money for complaining here. She is getting lower monthly payments but for longer. She either accepts that or takes on higher monthly payments.

roonaldo

no rules against borrowing into retirement. nice try.

magpiecottage

So what is Mum going to say?

"You should have known that I was so thick that I could not instantly recognise that adding 25 to my age came to more than 65"?

That is really what the argument boils down to.