Mortgage for 80 yr old?

auntie_brenda

Dear old dad's funds are running out. He needs access to money to pay for additional help in the house. He gets some assistance already, am waiting for him to be reassessed and he has claimed all benefits.

He has a net income of around 1k per month, of which 200 is spare money, but needs more than this when he is ill and has to have extra help in. Rather than go for equity release or similar are there any comapnies who would let him have a mortgage, with me as guarantor? Presumably 25 yrs would be out of the question

fimonkey

HI,

Sorry to hear about your father's situation. I personally can't help but wanted to bump this to the top as hopefully someone out there will be able to.

I HATE the way elderly people with a few assets are treated in this country, if you've never worked or contributed to the system you're fine, the state will look after you. If you're very rich you're also fine (you have offshore bank accounts and clever accountants) but those who have worked hard to try and increase their quality of life are shafted at every turn! .......I know it's an old rant but it so irritates me!!!!

Anyway, just a thought, if you're to act as guarantor on the loan then can you ot just get the loan out in your name with your father paying the repayments?

Good luck

Mr_helpful

I have arranged mortgages for people in their 80's and they didnt even have anyone willing to act as guarantor. So yes it should be possible

MortgageMamma

It might be posssible but is it wise? At the end of the day, he's borrowing money to pay for additional care when he needs it, which then commits him to a monthly mortgage repayment for x amount of years, what happens when the cash lump sum has been used up and he's still paying the mortgage and still needs additional help only now his situation is even worse? Elderly people have known to become very ill and die because of stress about money.

I think, although I am not qualified to advise on equity release or lifetime mortgages, that your father should consider this option - speak to a professional - a reputable local independent financial adviser should be able to help

shameless-about-money

auntie_brenda wrote: »

Dear old dad's funds are running out. He needs access to money to pay for additional help in the house. He gets some assistance already, am waiting for him to be reassessed and he has claimed all benefits.

He has a net income of around 1k per month, of which 200 is spare money, but needs more than this when he is ill and has to have extra help in. Rather than go for equity release or similar are there any comapnies who would let him have a mortgage, with me as guarantor? Presumably 25 yrs would be out of the question

Your Father can have a mortgage if he wants one, without any guarantor. With two provisos - he has to be able to afford the repayments and he must be adequately covered by some form of insurance that will cover the monies owed should he die unexpectedly.

Do see an Independent Mortgage Advisor on this one.

Mr_helpful

not wishing to be funny but an 80 yr olds death is hardly going to be a bolt from the blue. He does not need insurance especially as he probably (well no almost certainly) couldnt get it but he could get the mortgage without going down the equity release route

shameless-about-money

Well I did think that the insurance would be rather expensive!

AndyWallace

There a 2 choices:

Equity Release - Whereby he releases cash from the equity and it doesn't need to cost anything until his death, at which time the property will be sold or refinanced to repay the debt.

or:

His own mortgage. But MM made a good comment. What if he lives longer than the funds can provide for.


The only down side to Equity release is the interest rates are higher and rolled up, so you're paying interest on interest. Potential inheritance issues should never be a factor. Your father would be fully advised of the implications of such a mortgage.

Life insurance is not compulsory, nor necessary in this instance. At 80 years old, and in need of care, any proposal would be subject to in-depth underwriting and IF accepted, would be expensive.

Andy.

Mr_helpful

He could go interest only so he is paying as little as possible and not rolling up his debt.

MortgageMamma

Could your father not sell the property and downsize? rent something cheaper? that could be an option, then borrowing wouldnt be an issue. If he goes into full time care they will only force a sale on it to pay his nursing care fee's anyway....

EdInvestor

Equity release mortgages now have a "drawdown" facility so that you can fix the total amount of ythe mortgage at the start (say 59% of house value) , but only actually draw out cash as and when you need it.This slows down the interest roll-up considerably.

If it looks as though he might need long term care, then equity release is definitely worth considetring as he's likely to have to sell the house to pay for the care anyway.