mortgages for mentally ill?

moowife

My brother in law wants to move from the flat he owns in South London and buy a house in North London. We're concerned about whether he can get a new mortgage

He is married with one daughter, and his wife has a part-time admin job. He has recently been diagnosed with mental illness and is now on a range of drugs including anti-psychotics. He has circa £30k basic salary and otherwise commission-based job in the City which he's been in for 5 years. They were very supportive when he took time off last year.

Now he's been diagnosed as biopolar II will it affect his chances of a new mortgage? He currently has an interest only mortgage on his Sth London flat that he took out about 10 years ago, and he hasn't told them about his change in medical condition. His mum will help with a lump sum of maybe £100k but will she need to find more, or be guarantor to the new mortgage?

kingstreet

Does he lack capacity?

I can only see an issue if he does. A discussion with the lender of the existing mortgage may be a good opener.

_Andy_

Shouldn't be an issue - however what could be is a new interest only mortgage if there isn't a repayment vehicle, assuming he still wants IO

_Andy_

PS "and he hasn't told them about his change in medical condition" - he doesn't need to.

ChopperST

_Andy_ wrote: »

PS "and he hasn't told them about his change in medical condition" - he doesn't need to.

Exactly this has no bearing on a credit application. Your brother in law should factor in his capability to remain in employment to meet his repayments though as we all should when taking on any debt never mind a mortage.

Wh05apk

How would anyone know, presumably he is working so gets payslips, and if he is taking his medication would appear perfectly "normal"?

Obviously a bigger issue is whether he/his family wish to take on a big commitment.