lifetime mortgage with Halifax

chipmunkcheeks

My mother has a lifetime mortgage with the Halifax & we are considering both selling up & buying another property for us to live in together. We want to keep the new property in her name & still the lifetime mortgage with the same amount as it is now. We both have quite a lot of equity with our current properties so the deposit would be 4x the mortgage amount.

What I'm wondering is would me being under 55 and contributing to the deposit effect her eligibility to the lifetime mortgage?

I feel like it's a silly question but I know you have to show where all your money is coming from to apply & would it coming from me & us living together cause an issue?

She has moved in the past & in a sense this mortgage just transfers over no problem but it has all been done with her own property & her name. I don't want to approach the bank directly in case it would cause a problem & they make notes & we're scuppered before we start. ideally if mine sold 1st I'd put the money in her bank & then it all looks like its hers anyway but that's ifs & buts so if I knew it wouldn't make any difference at all anyway then we're a step closer to starting the ball rolling.

Hope this makes sense & I'd greatly appreciate your advice.
xxxxxx

kingstreet

Is it "Retirement Home Plan?"

If it is, Halifax withdrew the product last year and may not wish to lend on this basis in the future. You need to ask them first.

chipmunkcheeks

Thanks for replying. Sorry in taking so long to reply, I forgot my login details :0/. I'm new to this kind of thing.

Anyway I think it is a retirement homeplan, it is based on interest only & that on death the balance is repaid from sale.

She had it joint with her mother in a previous property & 3yrs ago they down sized & at that time didn't think they could move but when we went to the appropriate advisor we were told no new mortgages of this type were being offered anymore but existing customers could still take advantage.

Even though its only 3yrs my grandma passed away 12 mths after the move & my mum is struggling alone with the memories & increasing bills. We are helping but I'm disabled & so between us we're living hand to mouth paying 2 properties hence the idea to sell & buy bungalow for us all were we can share bills etc.

If the rules were still the same about existing customers being able to still take advantage I wasn't sure if my husband & I not being over 55, but contributing to the deposit, would effect her eligibility or would it go in her favour as extra source of income. If its withdrawn to everyone now then we're stuck as we are as either property isn't big enough for us all & because of whats happened to me we wouldn't get another mortgage as due to whats happened to me i can't work & my husband had to become my carer.

If you do have any further advice I'd truly appreciate it.

Thanks again for taking the time to help.

kingstreet

TBH I don't know. RHP was an "intermediary-only" product, which basically means HBoS group didn't want the hassle/liability of actually providing advice.

All I can suggest is you ask them the current position, then report back and let us know.

chipmunkcheeks

Oh that's ok, Thanks for trying to help me. I always seem to do something that doesn't appear to be the norm ha!

I have had it confirmed that existing customers can move & carry RHP on & even add to it if criteria is met. Also I've been told anyone on a halifax mortgage can move onto the RHP if they so wish. It seems to be only new customers to the halifax mortgages aren't eligible.

We are going to make an appointment with the specialist advisor who knows RHP inside out so we'll know for sure after that & I will let you know what happens. Fingers crossed.

Thanks again.

bognorcodger

chipmunkcheeks wrote: »

Oh that's ok, Thanks for trying to help me. I always seem to do something that doesn't appear to be the norm ha!

I have had it confirmed that existing customers can move & carry RHP on & even add to it if criteria is met. Also I've been told anyone on a halifax mortgage can move onto the RHP if they so wish. It seems to be only new customers to the halifax mortgages aren't eligible.

We are going to make an appointment with the specialist advisor who knows RHP inside out so we'll know for sure after that & I will let you know what happens. Fingers crossed.

Thanks again.

I've hit an unexpected problem with Halifax and our Lifetime Mortgage - has anyone any recent similar experience - and advice.

We took out our lifetime mortgage with Halifax in 2005 and it was specifically discussed and agreed that the mortgage was portable - that if we moved we could take it ('port' it) to the new property. The Key Facts documents we have call it a Lifetime Mortgage, and state that 'the mortgage product is portable'. This was, for us, the principal feature of the product.
This was again confirmed verbally on a brief visit to their branch in 2009 when we were considering a move.

This week they have told us on the 'phone, from an office in Sheffield, that 'Halifax no longer do lifetime mortgages, that we must apply for a new mortgage ( with full eligibilty checks, etc) and they are telling us to go to their other company, Scottish Widows. They are saying that the 'portability' of our mortgage applies only to the interest rate - not the loan itself.

Has anyone else encountered this response from Halifax? We can assume that Halifax/Llloyds want to get out of as many of these lifetime deals, as quickly as possible, but can they re-write their existing contracts to their own advantage?

opinions4u

bognorcodger wrote: »

I've hit an unexpected problem with Halifax and our Lifetime Mortgage - has anyone any recent similar experience - and advice.

We took out our lifetime mortgage with Halifax in 2005 and it was specifically discussed and agreed that the mortgage was portable - that if we moved we could take it ('port' it) to the new property. The Key Facts documents we have call it a Lifetime Mortgage, and state that 'the mortgage product is portable'. This was, for us, the principal feature of the product.
This was again confirmed verbally on a brief visit to their branch in 2009 when we were considering a move.

This week they have told us on the 'phone, from an office in Sheffield, that 'Halifax no longer do lifetime mortgages, that we must apply for a new mortgage ( with full eligibilty checks, etc) and they are telling us to go to their other company, Scottish Widows. They are saying that the 'portability' of our mortgage applies only to the interest rate - not the loan itself.

Has anyone else encountered this response from Halifax? We can assume that Halifax/Llloyds want to get out of as many of these lifetime deals, as quickly as possible, but can they re-write their existing contracts to their own advantage?

Portability applies to the product (rate). It has never been a guarantee that they will advance a completely new mortgage on a completely different property.

Thrugelmir

bognorcodger wrote: »

We can assume that Halifax/Llloyds want to get out of as many of these lifetime deals, as quickly as possible, but can they re-write their existing contracts to their own advantage?

There's no rewriting of contracts. "Porting" has always been on a subject to basis. Ceasing to offer a particular product will be covered in the small print of the existing contract.

holly_hobby

As T, and 04u have said, porting is in relation to the product (ie interest rate or discount under a fixed/tracker etc), not the underlying borrowings themselves.

Unfortuantely, RHP has been withdrawn for new business, although there are other alternative lifetime mortgage providers that remain in the market.

If you want to explore that route, you will need to consult a Equity Release adviser, whom will walk you through the process and where applicable should also consider alternatives to a lifetime arrangement.

Hope this helps

Holly x