Loan for a 75 year old

tubby210

My mum is 75 my dad died 2 months ago. She wants to some things round the house so needs about a £10000 loan,she has about £3500 in the bank house is worth about £100000 with no mortgage, what is the best place to get the loan. My mum wont have any credit history as my dad paid for everything

pvt

What is her income? How she will pay it back, if at all, will influence the options available to her.

margaretclare

It's possible to get a loan this late in life - DH has had a car loan. However, he has an excellent credit score, and that means a credit history. Without a credit history, I don't think she has much chance.

By 'credit history' I mean e.g. she may have had a credit card which she paid off as required, had no late payments. That's the easiest way to get a credit history and a good credit score. Or a loan of some kind which was all paid off.

She could try applying for a credit card and see how that goes.

HappyMJ

She could go to her bank and get a loan or a credit card and she could repay it from her pension.

If she is on means tested benefits such as pension credit then it''s unlikely she would get much though.

Make sure she's claiming her husbands pension too. She might be entitled to more money than she is getting.

I would really avoid equity release mortgages. You sound like you might be the beneficiary and if she were to get one you might find that although she only needed £6,500 to complete the work the company that provides the mortgage might take 3 times that. It would be cheaper if you could take out a loan and lend it to her repayable when she sells the house.

margaretclare

tubby210 wrote: »

My mum is 75 my dad died 2 months ago. She wants to some things round the house so needs about a £10000 loan,she has about £3500 in the bank house is worth about £100000 with no mortgage, what is the best place to get the loan. My mum wont have any credit history as my dad paid for everything

Thinking about this again...

'She wants some things......needs a £10K loan'.

That's an awful lotta money! What does she need, that costs so much?

Most of us get things a bit at a time, even if it means using a credit card.

I would agree - don't even think of going down the equity release route. Especially not to buy 'things' around the house.

We did it to pay off the original mortgage, but wouldn't consider it for any other reason.

Mojisola

tubby210 wrote: »

My mum is 75 my dad died 2 months ago. She wants to some things round the house so needs about a £10000 loan,she has about £3500 in the bank house is worth about £100000 with no mortgage, what is the best place to get the loan.

If the house isn't right, would downsizing be worth considering?

If not and the work that needs doing is maintenance and repair, see if she can get any grants. 'Staying Put' is a scheme run by the Anchor Trust in some areas of the country. Otherwise, contact AgeUK in her area and see whether they can suggest any grants.

tubby210

margaretclare wrote: »

Thinking about this again...

'She wants some things......needs a £10K loan'.

That's an awful lotta money! What does she need, that costs so much?

Most of us get things a bit at a time, even if it means using a credit card.

I would agree - don't even think of going down the equity release route. Especially not to buy 'things' around the house.

We did it to pay off the original mortgage, but wouldn't consider it for any other reason.

She wants to convert the bathroom which i guess would cost £4000 clear out the guttering approx £2000 stairlift abot £1000. £10000 was just a guess

McKneff

can you offspring not help out, you'll get it back 'eventually'

tubby210

McKneff wrote: »

can you offspring not help out, you'll get it back 'eventually'

afraid not

Mrs_Boo_Boo

Just a thought. Is your Mum eligible for a Disabled Facilities Grant via your local council for the stairlift and bathroom conversion? She would have to have an assessment and go through her finances and wait a while!!!! but it could result in her either having it funded fully or at least part of it. May be worth a try.

margaretclare

tubby210 wrote: »

She wants to convert the bathroom which i guess would cost £4000 clear out the guttering approx £2000 stairlift abot £1000. £10000 was just a guess

She probably won't be able to do all those things at once. Has she had estimates for all those projects?

Someone else suggested downsizing. Might be a good idea, better than spending a lot of money - loan plus interest - for one person. If she needs a stair-lift I would strongly suggest thinking of moving somewhere on one level.

DH and I have spent a lot over the years in modernising our home to be easy-care, convenient and safe, for our later years. But we had a 2-bed bungalow to start with. One of the best moves my first husband and I ever made.