cassielyn

cassielyn

I am 63, my husband is 78 and disabled. We have a mortgage with a big lender who has said they wont offer us a new mortgage because of my husbands age. Went to a broker who thought he could help, but 2 lenders have refused. How do older people buy and sell with a mortgage nowadays? I need a £145,000 mortgage, I am in work part time in the legal world (am a legal executive) , we have good income multiples, a grade A credit rating and I cant move to a bungalow because no-one will lend! what can I do? any suggestions please gratefully received. I am desperate! we have a cash buyer on our house and I need to get on with this quickly ! Does anyone have funds and would grant a private mortgage?

kingstreet

You need to speak to an Independent Financial Adviser who will have Lifetime Mortgage permissions. Many mortgage brokers choose not to have this and pass on such queries to IFAs.

cassielyn

have spoken to an IFA, he has tried Swedish Bank and Bath BS, they say what if my husband dies, as I only work 3 days a week I wont be able to afford repayments. I have oap. private pension, if my husband dies I have all of his serps (which is large!) half his private pension, £50,000 insurance, and I have a large inheritance coming to me in the future. I have no problems financially. My sale and purchase will fall down if I cant get something sorted quickly

maninthestreet

So what is your current joint gross income - an insurance policy isnt income.

Simon_gloster

cassielyn wrote: »

have spoken to an IFA, he has tried Swedish Bank and Bath BS, they say what if my husband dies, as I only work 3 days a week I wont be able to afford repayments. I have oap. private pension, if my husband dies I have all of his serps (which is large!) half his private pension, £50,000 insurance, and I have a large inheritance coming to me in the future. I have no problems financially. My sale and purchase will fall down if I cant get something sorted quickly

As you have seen, most elnders will restrict the term of the mortgage to end on or before the eldest 75th birthday.

If your income seems sufficient (as stated Life insurance and inheritance don't play any part in this whatsoever) it's only the age element a broker needs to overcome.

It's unlikely to get "sorted" quickly also as your situation needs specialist underwriting I would say ie long term pension support etc

Can you not move home and not need a mortgage at your age?

Dave_Ham

Sorry, would be helpful to start at the top.

What price have you agreed to sell at and what mortgage do you currently have?

What price are you looking to buy at?



Cheers

Conrad

I suspect a very small private lender is the way forward.

Lifetime equity release mortgages will be expensive for your next of kin.

holly_hobby

Mainstream lenders are a no go - there are no current lenders that I know of, that offer an open ended term (ie - no max age restrictions).

So there are 2 mortgage options:-

Lifetime mortgage (which can be used to pch properties as well as release equity). As Kings states, not all mge advisors are qualified in this area, and it is imperative that you do seek any advice from a suitably qualified equity release advisor.

You should note, as touched on by Conrad, that whilst there are no monthly mge repayments under a lifetime mortgage arrangement, the interest is rolled up and will effectively erode the free equity in the property over time, so any arrangment of this nature should be discussed with your nearest and dearest, with due consideration on how this arrangment will impact on your estate.

Having said that, there is 1 provider (intermediary only) whom does permit the payment of accured interest, either wholly or partly on a monthy/regular basis, to assist in effectively ringfencing the free equity in the property.

NB - if you have any doubts at all, as to this being your final home - a lifetime mge may not be suitable due to the very costly early redemption penalties levied by providers.

Private investor bank as Conrad suggests

Only income pre and post retirement may be used - as already stated, life protection, anticipated future inheritances, etc, are unsuitable for mge affordability purposes.

What kind of mge term are you looking at ?

Do you want a defined term to end at a specific age ?

Or one long enough to hopfully exceed 2nd death - meaning that the estate will repay the o/s mge at that time - in effect a lifetime mge from under residential terms ?

This next suggestion may have been considered and dismissed by you, but hear me out .....

With your Hubbys disablement, have you considered approaching your local authority for suitable housing to cater for his mobility problems) ...

OR (if you have sufficient cash reserves for your % ) have you considered a shared ownership arrangement on a suitable property (which also provides lifetime tenancy security with HA's ). (as my in-law's have just done, after selling their property and downgrading)

Both would provide a solution to the age factor & mge availability.

May be something you have considered already, but thought it worth a mention if you haven't.

Hope this helps

Holly

kingstreet

I wasn't necessarily talking about interest roll-up schemes.

Interest-only, like the old Halifax retirement home plan would seem like a decent option compared to the roll-up alternative.

holly_hobby

Sorry Kings, I wasn't aware you refering to any particular LT arrangement.

Sadly Halifax RHP scheme bit the dust a little while ago (apart from existing borrowers I believe - which if applies to the OP is a poss consideration for them), as did the YBS facility for a mainstream resi with no max redemption age.

As I say, there is a LTM facility where there is the opportunity to pay accured interest, thereby giving the mortgagor the opportunity to ringfence the free equity from erosion (obv it will still be subject to property market movements in valuation).

Personally, with the Hubbys condition and the age issue, I would consider approaching the LA for age/health related housing, or consider shared ownership with a HA, as both willl provide the security of a lifetime tenancy. (private landlords being unable to provide this facility).

The LA rented option (if a suitable property was offered to them) would obv assist in the OP retianing any equity released from their property, however it should be noted that this may exclude them from any MT benefits they currently qualify for, or may post move.

Hope this helps

Holly