Mortgage for 79 year old?

Dird

£400k kitchen??? !!!!!!

Conrad

missbiggles1 wrote: »

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?

It certainly does, a heck of a lot of people get put off when they see the compound interest illustration over 15 years. Owners often end up rejecting it saying things like 'I cannot countenance seeing most everything go to an insurance company, my lifes work, I wish to leave much more of it to my children / a good cause'.


Usually only small ER loans are agreeable.

Conrad

The problem will come when you read the following Daily Mail headline;


WAR HERO 90 Y/O KICKED OUT OF HOME AS CANNOT SERVICE THE MORTGAGE.


Many changes to peoples lives / mental health can cause affordability issues. For example the borrower may take up betting. If you read a headline showing some old fella loosing his home you might feel anger.

Let_Us_See

Conrad wrote: »

It certainly does, a heck of a lot of people get put off when they see the compound interest illustration over 15 years. Owners often end up rejecting it saying things like 'I cannot countenance seeing most everything go to an insurance company, my lifes work, I wish to leave much more of it to my children / a good cause'.

Isn't improving quality of life in retirement a good cause? If your parents were struggling in retirement would you argue against a lifetime mortgage to improve their quality of life as it would reduce your possible inheritance?

Perhaps surprisingly only about 20% of my lifetime mortgage cases are for "hardship" reasons with the rest opting to use their property as an asset to improve quality of life in retirement. Whilst we consider and recommend all other forms of finance and use of existing assets before recommending a lifetime mortgage, the average lifetime mortgage applicant is certainly not poor, with a replacement car, motor home, property extension or holiday home the four main reasons for releasing equity.

missbiggles1

Conrad wrote: »

The problem will come when you read the following Daily Mail headline;


WAR HERO 90 Y/O KICKED OUT OF HOME AS CANNOT SERVICE THE MORTGAGE.


Many changes to peoples lives / mental health can cause affordability issues. For example the borrower may take up betting. If you read a headline showing some old fella loosing his home you might feel anger.

With modern day equity loans, losing you home isn't a possibility, I believe.

Let_Us_See

Plus, the mortgage does not need to be serviced, although this is an available option.

valerie57

Thanks all. There is much more to this than we had realised. We spoke to FIL this am and he is considering the sell/downsize option.

Let_Us_See

valerie57 wrote: »

Is it possible to get an interest only mortgage at his age?

Back to your original question and there is a facility for a lifetime mortgage were interest is paid monthly. Affordability assessed and your FIL would need sufficient guaranteed income.