Best course of action for 64 year old moving house

Mossfarr

The Park Home sounds like a really good solution.
Think very carefully about your Mum moving in with you - whether its by purchasing a larger house or extending your current property. You have no idea how difficult this can be - I am in that situation so I speak from personal experience! How would you feel if she wanted to move in a new partner, what if you simply can't all live together without arguing?
The Park Home allows your Mum to retain her independance but for her to be close enough for you to help her when she needs it.

Nobbie1967

missbiggles1 wrote: »

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.

I don't understand what you're saying here. I understood that interest only mortgages were sold on the understanding that you would have a plan for repaying the capital at the end of the term. The length of the term was agreed when the mortgage was issued, so not sure how the banks 'pulled the plug' or maybe I've misunderstood something.

missbiggles1

Nobbie1967 wrote: »

I don't understand what you're saying here. I understood that interest only mortgages were sold on the understanding that you would have a plan for repaying the capital at the end of the term. The length of the term was agreed when the mortgage was issued, so not sure how the banks 'pulled the plug' or maybe I've misunderstood something.

My parents took out an IO mortgage on the understanding that it would be repaid on the second death, which is what happened to them. Other people (myself included) took out the same product on the same expectation (even if on paper there was a length of term quoted, one was told that this was just a formal requirement) only to find out many years later that the formal requirement was going to be applied after all because of the change in banking policy.

You never needed to have a plan for repayment in place, because the idea was that the capital would be repaid on the sale of the property or the death of the borrower. It worked perfectly well until the "formal requirement" was enforced.

xylophone

You never needed to have a plan for repayment in place,

Some lenders insisted that there was an endowment policy in place and the policy document was held in the lender's custody until maturity.

At one time, only "full" endowments were used - these were guaranteed to pay off the capital sum assured and there was usually a lump sum over.

Then "low cost" endowments became available - this was the type that has ofter resulted in shortfalls.

missbiggles1

xylophone wrote: »

Some lenders insisted that there was an endowment policy in place and the policy document was held in the lender's custody until maturity.

At one time, only "full" endowments were used - these were guaranteed to pay off the capital sum assured and there was usually a lump sum over.

Then "low cost" endowments became available - this was the type that has ofter resulted in shortfalls.

Yes, I had an endowment mortgage at an earlier stage in my life (cashed in the endowment early) but my parents took out an IO mortgage in 1988 with no repayment vehicle being required and we took out one in around 2003 on the same basis.

Thrugelmir

missbiggles1 wrote: »

My parents took out an IO mortgage on the understanding that it would be repaid on the second death, which is what happened to them.

No lender would operate on the basis of an understanding. A mortgage in underwritten by a legal contract that applies to both parties. Regulation changes continually. So this in itself would make an possible understanding void as would take precedence. As was the case with the MMR not so long ago.

marliepanda

AnotherJoe wrote: »

This all sounds entirely fanciful to me. She has no way of paying back ninety thousand pounds other than selling her house and niot leaving enough money to buy anywhe else, and she plans to work 3 days a week as a receptionist,mwhich will provide maybe £15k a year, and she doesn't have a pension.

She needs to deal with all that before looking at moving to near you let alone buying another house And she will probably have no alternative to either buy a one bed, two at a push, flat, or perhaps she'll have to rent.

15k for three days a week is an EXTREMELY highly paid receptionist...

Thrugelmir

Beans27 wrote: »

Any thoughts/ advice much appreciated.... I am a lot more cautious than my mum and don't want her throwing herself into something then regretting it. Thanks

Start overpaying the mortgage ASAP and building equity i.e. savings. With no job to go to and her age. Options are limited. Take whatever action she can while there's still time.

carefullycautious

Make sure you read this before buying a park home


http://parkhomes.lease-advice.org/buying-a-park-home-things-to-consider/

AnotherJoe

marliepanda wrote: »

15k for three days a week is an EXTREMELY highly paid receptionist...

Really? Mrs AnotherJoe got 10k for 2 days a week until last year when she packed it in, so I just prorated.