Mortgage with no capital repayments or endowment policy

donaldfleming

I am 57 years-old and chronically ill.

My income comprises Income Related Employmet Support Allowance and Housing Benefit.

Currently I have a shared ownership agreement with a housing association. I own one-quarter of the property and the housing association owns three-quarters. I pay it rent on its share, which is covered by Housing Benefit.

I have the option of buying the housing association's share of the flat. If I entered into a mortgage agreement, Housing Benefit would cover the interest payments.

I have no close relatives, and on my death the ownership of the flat would be willed to a charity.

In your opinion, would a lender be prepared to advance me a mortgage, with only interest payments to be paid and the capital sum owed to be repaid out of the sales proceeds of the property on my death?

I would be looking for a mortage of around £35000.

TrickyDicky101

I wouldn't have thought you will get any housing benefit if you own the property outright?

I can see no benefit for you/anyone else in purchasing the remainder of the property.

I highly doubt any lender would advance you a mortgage in any case.

lonestarfan

You won't get Housing Benefit as that is for rent. You may get a benefit called SMI - support with Mortage Interest but you'd have to get advice. I can't see a lender lending you money on interest only as that's very rare nowadays and requires a payment vehicle which is not payment on death I believe. I also don't know if you can get a mortgage when your income is solely benefits. You need the advice of a good mortgage broker who I'm sure will be a long shortly.