Best course of action for 64 year old moving house

FBaby

Your mum needs to come to terms with reality. She is currently only paying interest, because she can't afford to pay the full amount?

At best, she will be able to transfer her current mortgage, but she will clearly still have to face the fact that in a few years time, she will have a shortfall and then what will she do?

As for another mortgage, how could she possibly afford it when she expect to cut down her hours significantly? It just doesn't add up and the best way you can help her is to make her realise that and help her plan her future when the mortgage comes to an end.

ThePants999

If I were a mortgage lender, I would not lend to someone who in a few years will be trying to repay me with the state pension only.

Cheeky_Monkey

According to a report I read today in the This Is Money newsletter, brokers are reporting that people over 40 are now struggling to get a mortgage due to 'ageism' by lenders :eek: so I don't think your mum, at 64, will stand a chance

csgohan4

Cheeky_Monkey wrote: »

According to a report I read today in the This Is Money newsletter, brokers are reporting that people over 40 are now struggling to get a mortgage due to 'ageism' by lenders :eek: so I don't think your mum, at 64, will stand a chance

It's ageism for a good reason. You won't be earning as much close to retirement and thereafter.

The issue now is the many people who are interest only mortgages who are finding it difficult to repay them in full when the term ends.

The live for now and don't worry about the future

Beans27

j_yorks wrote: »

I can't imagine anyone offering her a mortgage , especially as she is planning to leave her job.

Your poor mum - how is she ever going to afford to pay this off? She's going to have no retirement to speak of.

Hi all, thanks for all the helpful advice that's been given on this thread. j-yorks I felt I had to reply to this specifically - no I appreciate that, it won't be possible to get a mortgage unless she had a job here first (and even then unlikely as it would be fairly low paid). But please don't think my poor mum - she made choices when she was younger that have led to this situation and whilst its not ideal, I'm sure there must be other people who haven't got the ideal retirement either.


We went to see one of the 'cabins' on a park home near us - and to my surprise, she actually loved it.....so that's positive. She need to go and do some sums, but the sale of her house should leave her enough to buy something like this with a bit left over. She will still need a little part time job, but clearly won't be a pressing without a mortgage, I could help her each month if required. I think this might be the way to go, might start another thread to see if anyone has any experience of park homes!

Beans27

csgohan4 wrote: »

The live for now and don't worry about the future

Yep - unfortunately my mum generally has this attitude - not a lot I can do apart from try and help where I can!

Beans27

tlc678910 wrote: »

Hi Beans,
If your family and your mum were up for it could you buy something big enough for you all to live comfortably for an extra 50K (allowing 10K for fees)

If you could find something where your mum had her own bathroom as well as bedroom and a second sitting room perhaps do you think you could all live comfortably and get along? You might even find something with a full "granny annexe".

Is there any scope to use your mums equity to put a suitable extension on your own property?

Both of these options might be tricky is you have siblings for obvious reasons! (Edit - I see you have mentioned a brother if he is local perhaps he could consider the same options and difficulties)

Thanks tlc - something I have thought before, but it was always with the view of (either of our) parents being older and needing more assistance. Probably not space on our house to extend, but maybe in a few years we could think of moving to somewhere a bit bigger with a granny annex....its definitely a nice idea (although not sure partner would agree!!). I have two brothers who both live in London, so I don't think they would have any issues with something like this.

Person_one

AlexMac wrote: »

As regrds the well intentioned advice..... nice idea, but given that I still manage a bit of gentle mountain walking even now, at the age of 68, I'd have told my kids where to stick advice like that!

Those retirement properties aren't care homes! I've met people living happily in them who could probably outrun you up any mountain!

They tend to be pretty spacious too, I remember looking around one, mentally comparing it to my own trendy city centre 'apartment' and feeling distinctly jealous/ripped off.

missbiggles1

ThePants999 wrote: »

If I were a mortgage lender, I would not lend to someone who in a few years will be trying to repay me with the state pension only.

Although I agree that it isn't a good idea, she could claim SMI after retirement to pay the mortgage.

missbiggles1

csgohan4 wrote: »

It's ageism for a good reason. You won't be earning as much close to retirement and thereafter.

The issue now is the many people who are interest only mortgages who are finding it difficult to repay them in full when the term ends.

The live for now and don't worry about the future

Why not - your salary doesn't drop as you enter the later years of working life.

As for older people with IO mortgages, most of them are in trouble because the banks moved the goalposts. My parents happily made their mortgage repayments (just as they would have had to pay their rent) until the day that the second of them died. Many people expected to do the same and then the banks pulled the plug and started reinforcing a repayment date that wasn't expected when the mortgage was taken out - hardly the fault of the borrowers.