Older Person looking 10 year mortgage

irishjohn

I have a friend who is retired and in her late 60s - she has a pension income of £22K Per Annum and a mortgage free property worth £350K.

She wants to help her son buy his first property and wants to be able to give him £30K towards a £40K mortgage. She does not want to use her savings for this purpose but would like instead to obtain a mortgage against her property for £30K over a 10 year period.

She banks with Nationwide but because of her age they will only offer a mortgage for a maximum of 5 years.Do any of you knowledgeable folks know of any banks which would offer a 10 year small mortgage of £30K which is affordable for her against here mortgage free home?

Thanks for your help.

amnblog

She can 'use her savings' without the funds needing to go into the property which may be a better solutions.


There are lending options available where 5% cash can be put down and 10% held in a saving account for the first 3 years.


Her age is immaterial.

irishjohn

amnblog wrote: »

She can 'use her savings' without the funds needing to go into the property which may be a better solutions.


There are lending options available where 5% cash can be put down and 10% held in a saving account for the first 3 years.


Her age is immaterial.

Sorry I don't understand what you mean. She owns her house outright and had a small amount of money saved. She needs to keep the savings as her own rainy day fund and wishes to mortgage her house to obtain a sum to give her son to use to buy his own house.

amnblog

You gave me the impression that she had the cash but understandably did not want to tie it up in her sons property.

irishjohn

amnblog wrote: »

You gave me the impression that she had the cash but understandably did not want to tie it up in her sons property.

That's right she has some savings but my question is about where she might try to obtain a 10 year mortgage. Any suggestions anyone?

irishjohn

Anyone got any information which might answer my query please?

robatwork

She could go for one of these, although personally I hate them:

http://www.which.co.uk/money/retirement/guides/equity-release-explained/equity-release-lifetime-mortgages/

I would recommend if she is really keen to help her offspring that she sells up, moves to somewhere costing £300,000 and loans him the money herself, charging 0 or nominal interest. Then she is in total control.