No more mortgages for old people??

artiechalker

I am eligible to purchase my council home through a right to buy application. My mum is the primary tenant. However she is 60 and all the mortgage brokers I have spoken to in the past couple of weeks have told me that because she would be a joint mortgage applicant I can only get a maximum mortgage term of 5-10 years.

The total value of the property with the discount included is £165,000. So a 5-10 year repayment mortgage (apparently I can also only get a repayment mortgage under new regulations) is just far too steep for me to afford. I doubt any lender would even give me a mortgage as I’d need to demonstrate I can afford to repay at least 200k in just 5-10 years at the very most, which I patently can’t.

The irony is that if the repayment period was more akin to a normal mortgage term of 20-25 years I would be able to repay it comfortably. Plus, I’m 28 years old and a young professional in full-time work, so I would have thought there’d be no reason a longer-term mortgage for someone of my age and employment wouldn’t be feasible.

If there is any advice anyone has about whether there is still some way of getting longer-term mortgages even for joint mortgage applications where one party is much older then other, I’d be really grateful!

I just think there must be some kind of solution for people in my circumstances.

Leon_W

Errr . Why should you benefit from a right to buy discount if the tenant is your mother ?

artiechalker

we are both tenants in the same property. It means we are both entitled to make a right to buy application jointly. But my mums name would have to be on the application as well as mine.

Leon_W

Ahh. Ok. In that case the information you have been given is probably correct. In joint names the mortgage would be unaffordable on such a short term.

Senior_Paper_Monitor

There are a very small number of lenders who will do this (one less since close of business yesterday !!).


Find a specialist right to buy broker (don't worry whether its local or not) and they may be able to help you.

kidmugsy

National Counties BS used to have a high age limit for mortgages - worth checking?

Dave_Ham

There are likely to be solutions, although access will almost certainly be restricted to brokers and as you have found many will not know where/how to place.

We have placed a few of these as your situation is not uncommon, but lenders are pulling out of this marketplace so well worth moving forward quickly.

Good luck