Mortgage for older people?

Bobbie320

We are having problems finding an interest-only mortgage for a short period to pay off an equity release scheme on a deceased relative's property. The mortgage would be against our own home (owned) and we have savings enough to cover it (held in ISAs, so don't want to use them); it would be repaid on the sale of the property (quick sale expected). The reason for borrowing is that the equity release company (AVIVA) are causing problems over the sale and charging a fortune in interest. We only need £75,000 (have already repaid AVIVA £95,000) but are told we are too old, as we will be over 70 in five years' time (minimum term of mortgage, although we will pay it early).

I've spent much of my life being discriminated against for being female; now it is my age that is against me.

Is this legal?

Advice? Do not ever, ever take on an equity release scheme and certainly avoid AVIVA. They also messed up my husband's pension - and that is a life-long reduction of our living-standards.

Annisele

In principle, yes it is legal for lenders to have a maximum age.

Some lenders do have a maximum age of 75, but I suspect you'll still have difficulties. Lenders are generally cautious about interest only mortgages (some have pulled out of the interest only market altogether, and others will only lend up to a maximum of, say, 75% of the property value). Affordability may also be an issue - you say you have lots of savings, but you don't mention your income.

I assume you're the executor of your relative's estate? Depending on exactly what problems Aviva are causing, it might be cheaper to try to resolve those without taking a new mortgage - possibly via a complaint to Aviva.

Bobbie320

Annisele wrote: »

In principle, yes it is legal for lenders to have a maximum age.

Some lenders do have a maximum age of 75, but I suspect you'll still have difficulties. Lenders are generally cautious about interest only mortgages (some have pulled out of the interest only market altogether, and others will only lend up to a maximum of, say, 75% of the property value). Affordability may also be an issue - you say you have lots of savings, but you don't mention your income.

I assume you're the executor of your relative's estate? Depending on exactly what problems Aviva are causing, it might be cheaper to try to resolve those without taking a new mortgage - possibly via a complaint to Aviva.

We are trying to borrow 30% of our property value, with an income in excess of £30,000 pa and savings in excess of £100,000. I am the sole executor and trustee for the estate, looking after 7 heirs (all with young families and unable to borrow more). I have been offered a repayment mortgage by the Cambridge Building Society over 10 years, but the repayments would leave us a bit short each month, thus eating into our (ISA) savings. I've banked with Barclays since 1968 and was appalled at their attitude when I enquired. (I only bank with them now for the holiday insurance!)

AVIVA just want even more money to value the property again, as the aim is to split the property into current house and building plot, either of which will easily repay what is due (we've already had an offer). The property and building plot was valued for Probate but they are not prepared to accept that. I'm just so cross that I want them off my back! Their interest rate is 7.55%, a true rate of 9%. The loan my Aunt took out was for just over £80,000 in 2003 (about 30% of property value; we couldn't afford to help her at that time), the outstanding loan in January was £170,000. I think they have had enough!

Anyway, thank you for your feedback.

Dave_Ham

Hi there,

I would suggest you go and have a free initial chat with a recommended mortgage broker.

As you have found and you appear to have a decent grasp, this will not be an off the shelf solution.

Given the variables provided though, I do believe there will be a solution that meets the needs of all.

Good luck

[Deleted User]

Bobbie320 wrote: »

We are having problems finding an interest-only mortgage for a short period to pay off an equity release scheme on a deceased relative's property. The mortgage would be against our own home (owned) and we have savings enough to cover it (held in ISAs, so don't want to use them); it would be repaid on the sale of the property (quick sale expected). The reason for borrowing is that the equity release company (AVIVA) are causing problems over the sale and charging a fortune in interest. We only need £75,000 (have already repaid AVIVA £95,000) but are told we are too old, as we will be over 70 in five years' time (minimum term of mortgage, although we will pay it early).

I've spent much of my life being discriminated against for being female; now it is my age that is against me.

Is this legal?

Advice? Do not ever, ever take on an equity release scheme and certainly avoid AVIVA. They also messed up my husband's pension - and that is a life-long reduction of our living-standards.

Hi Bobbie320

I'm ever so sorry to see your post. If you would like me to arrange for an adviser to contact you and answer your concerns to see if they can help, please send the following details to social@aviva.co.uk:

Full Name
Date of Birth
Postcode
Policy Number
Contact Telephone Number
Money Saving Expert Username

I look forward to hearing from you soon.

Kind Regards

Stephanie Carrington
Aviva UK Social Support

Bobbie320

Will e-mail you today.

kidmugsy

How about National Counties BS?