Mortgage for 79 year old?

valerie57

Thanks for reading this. My father in law needs to get about £50k and the only potential source is his house. He owns it outright and it is worth about £170k. We have looked at equity release schemes but the interest costs are prohibitive. Is it possible to get an interest only mortgage at his age? If not, any other ideas would be most welcome as we are really stuck and getting this money is really important.
Thanks in advance.

libf

It's not really possible to get a residential interest only mortgage at any age anymore.

What does he need the money for?

Sell and buy a cheaper property/rent might be the best option...

valerie57

Thanks libf. How about a mortgage with interest. E ven that looks better than equity release c

Senior_Paper_Monitor

Presumably - since he needs £50K - his income is low ?


Any loan other than full equity release will be based on income.


There is no apparent route for interest only as he has insufficient equity to consider downsizing.


Equity release would appear to be the only option

Thrugelmir

valerie57 wrote: »

We have looked at equity release schemes but the interest costs are prohibitive.

What rates of interest do you regard as prohibitive?

missbiggles1

valerie57 wrote: »

Thanks for reading this. My father in law needs to get about £50k and the only potential source is his house. He owns it outright and it is worth about £170k. We have looked at equity release schemes but the interest costs are prohibitive. Is it possible to get an interest only mortgage at his age? If not, any other ideas would be most welcome as we are really stuck and getting this money is really important.
Thanks in advance.

As nothing is repaid until the borrower dies and safeguards are now in place to ensure that there'll be nothing left owing after this event, does the interest rate actually matter?

Anyway, if he's very short of money at the moment, how could he afford to make any payments on a normal mortgage?

capwhitt

What is he doing with the house when he dies (hopefully still some time away)? Can he give the house to his children, who can remortgage it and charge him rent to live there (as much as he can afford in his circumstances) and pay the mortgage? If he would give the house to his children when he dies anyway, its just doing the paperwork earlier. Hard subject to bring up I know, but it might work - just a suggestion.

dunstonh

How about a mortgage with interest. E ven that looks better than equity release

Equity release is a mortgage with interest.

We have looked at equity release schemes but the interest costs are prohibitive.

You tend to find that mainstream equity release providers have a more stable interest rate than residential mortgages but are not even close to prohibitive. They are consistent in the range for non-deal residential mortgages.

Senior_Paper_Monitor

Sale and leaseback is not acceptable for any lender - end of !


There are a few other issues with suggestion as well (deprivation to name just one)


This is going to be equity release - no other way.

capwhitt

Senior_Paper_Monitor wrote: »

Sale and leaseback is not acceptable for any lender - end of !


There are a few other issues with suggestion as well (deprivation to name just one)


This is going to be equity release - no other way.

Its not sale and leaseback. Its a gift then leaseback. Take the house as a gift then get a BTL mortgage. Some banks won't let you do this with family members but some will.

See this thread:
https://forums.moneysavingexpert.com/discussion/4442063

Brock_and_Roll

capwhitt wrote: »

Its not sale and leaseback. Its a gift then leaseback. Take the house as a gift then get a BTL mortgage. Some banks won't let you do this with family members but some will.

a) if this is possible, given the limited range of lenders available, would the rates be attractive in comparison with equity release?

b) this would not get around any Deprivation of Assets issues especially as the chap is 79 years old.