Pensioner Mortgage

theGrinch

My mum will be 73 at her next birthday.

She is receives a state pension of £8853pa plus £1640pa (from a private pension).

I have read of mortgages for people up to 85 or 87 years of age (although lender was not disclosed)

She would like to purchase something at £250k or just below and has a 20% deposit. However, she is able to pay down the mortgage as savings mature.

How likely is it that a lender can be found on either an interest only or repayment basis?

Thrugelmir

theGrinch wrote: »

She would like to purchase something at £250k or just below and has a 20% deposit.

I'm sure she would. However she would fail the affordability checks.

shortchanged_2

So she's only looking for around a 20 times income mortgage at the age of 73. I don't see a problem, does anyone else?

Funny_old_game

I certainly don't see any issues. Give the mortgage on int only with no acceptable repayment plan. Allow self cert......straight forward case that'll fly thru, so if I was a broker I'd waive my fee for sure.

SunReader

go for 500k instead - shouldn't be a problem with repayments and at that age, 25 year mortgage would be my advice.

Annisele

theGrinch wrote: »

She would like to purchase something at £250k or just below and has a 20% deposit. However, she is able to pay down the mortgage as savings mature.

How likely is it that a lender can be found on either an interest only or repayment basis?

The insurmountable problem here isn't her age, it's her income. 19x income just isn't going to happen, from any regulated lender, over any term.

Is she able to surrender any of the investments early? That's the only way I can see her affording the property.

theGrinch

Annisele wrote: »

The insurmountable problem here isn't her age, it's her income. 19x income just isn't going to happen, from any regulated lender, over any term.

Is she able to surrender any of the investments early? That's the only way I can see her affording the property.

Those maturing are 30k in 2015, 50k in 2016 and £80k in 2017. Unfortunately, there are no break clauses.

As the others have been fumbling to say, its not ideal, but deaths leading to such situations never are.

pinkteapot

So, in 2017 she'll have £210k in cash (current deposit plus matured investments). If she can get a £40k mortgage at that point she can buy then, and if not then buy a £210k house for cash...

pinkteapot

BTW, if she borrowed £200k over 12 years (to age 85) at 2.99%, the monthly repayment would be £1,654. That's £19,848 per year - almost twice her total annual income. She'd need to use £9k of her savings per year just to pay the mortgage, plus extra for her other bills, food and living expenses. :eek:

theGrinch

pinkteapot wrote: »

BTW, if she borrowed £200k over 12 years (to age 85) at 2.99%, the monthly repayment would be £1,654. That's £19,848 per year - almost twice her total annual income. She'd need to use £9k of her savings per year just to pay the mortgage, plus extra for her other bills, food and living expenses. :eek:

why does it need to be a repayment rather than an interest only mortgage?

theGrinch

pinkteapot wrote: »

So, in 2017 she'll have £210k in cash (current deposit plus matured investments). If she can get a £40k mortgage at that point she can buy then, and if not then buy a £210k house for cash...

Hate to surprise you, but what you have said has been considered already.

As said in a previous post...circumstances are driving this immediate need.