Desperately Seeking Mortgage Advice - Self Employed and Over 70 Query

buttercup_2017

Hi

This is my first post and I'd appreciate any advice that could be offered.

I am self employed and have been for 6 years. I'm pretty sure I won't get a mortgage. I receive tax credits but no other benefits. I work hard - 7 days a week. I have a £20,000 deposit for a house.

My mum is 71, a very sprightly 71! She retired a few years ago and has a good occupational pension as well as her state pension of course. She has a deposit of approx. £80,000. We have seen a house we are interested in (just by chance) for £225,000.

We are desperate to buy a home and are prepared to move from the South East to the Midlands to get better value for money. However, a mortgage adviser said I'd be unlikely to get a mortgage due to my fairly low wage, and my Mum couldn't get a mortgage because she doesn't already own a property, despite mortgages being available for older people.

We have worked so hard, have had some bad luck but have diligently saved a deposit between us. My Mum loaned my sister money to buy her home and has just received it back. They have moved abroad for work and said that because we had helped them, they wanted to help us. They were prepared to get a mortgage in their name to allow us to own a home. However, because they are abroad and their wages are paid into a foreign bank account, the only bank willing to lend in such circumstances in HSBC. HSBC confirmed a wage of £70,000 per year, paid into a UK account would allow them to get a mortgage to help us. They do not meet either criteria. The alternative is that they lend us £120,000 from the sale of their home in England, whilst they're abroad - but what do we do when they come back?

So, we are stuck. We have lived in our Housing Association home for 25 years, we were waiting for the Right To Buy which has essentially been put on hold apart from two pilots. It would be too expensive to buy in Kent, even with the discount. We were told in a few years we'd be able to buy our home - that was 25 years ago - the advice from the representative of the Housing Association was wrong - we have the wrong type of tenancy.

We have paid our rent every month, have never defaulted and do not receive benefits (other than my working tax credits from the last few years).

We just cannot seem to buy a property and wondered if anyone has experienced this before. It seems that you can put down a 5% deposit, get Help To Buy etc and buy a home. But, if you want an older home, have a larger deposit and have a proven track record of affordability with your rent - you're lucky to get a step on the property ladder.

I've read all the advice but can't see a way of helping ourselves. I've taken advice from a mortgage adviser. If there's something I have missed please let me know! I think Guarantor Mortgages would have the same problem with my sister being abroad for work.

ACG

You do not say what your mums income is nor yours so it is impossible to say if what you are looking for is realistic or not.

I am just waiting on a call back from a lender about a Mortgage for someone who is in their 80s. When doing my research, there does appear to be a few lenders who will lend to someone retired.

You could probably do with speaking to another broker. I am not sure if you went to a fee free broker or not, but if I was fee free, I would not be spending anything more than 5-10 minutes on the case as the commission on this would be less than £200. The fee I am charging makes it worth my time to find a solution. Our fees are only charged on offer, so no risk to the customer. I suspect so long as the amount you are looking for is reasonable, ie no more than 4x income then you will probably have options. But it is unlikely to be a high street lender.

buttercup_2017

Thanks for your quick reply ACG - much appreciated. My income is £10,000, Mum's is £16,000. The broker was my sister's mortgage broker who went to her contacts and asked about the over 70 years old issue (no one would lend unless she already had property). She asked her contacts about a mortgage for someone actually living and working abroad (no one would lend unless at least £70,000 is paid into a UK bank each month)

My situation was pretty much irrelevant as we agreed I probably wouldn't get a mortgage. We could borrow from my sister, but we'd really like our own mortgage, even if a small one.

ViolaLass

buttercup_2017 wrote: »

We could borrow from my sister, but we'd really like our own mortgage, even if a small one.

Why? Sounds like you have a solution.

Also, would your mum be living with you? If so why does she need to own another property first?

buttercup_2017

Because my sister will want her money back when she returns to the UK in a few years time (maybe four) to buy her own home. We were told by a mortgage broker that the only way my Mum could get a mortgage at her age is IF she already owns a property. She doesn't and we will share to make the best use of our money.

ACG

buttercup_2017 wrote: »

We were told by a mortgage broker that the only way my Mum could get a mortgage at her age is IF she already owns a property.

Rubbish. It is either possible or it is not, being a current home owner will not be the deciding factor here.

Find another broker.

buttercup_2017

ACG wrote: »

Rubbish. It is either possible or it is not, being a current home owner will not be the deciding factor here.

Find another broker.

Thank you. You've given me some hope, I thought we'd run out of options. I'll do some googling and see if I can find some recommendations.

csgohan4

careful about lending money from family/friends, money and family generally shouldn't mix


Should they lend you 120k, how do you plan on paying them back when they want it back in a few years? your on low income yourselves

buttercup_2017

That is exactly what I said above, that is my concern. We can borrow the money, but we need a workable plan in place, which is why we'd prefer our own mortgage.

With regard to borrowing from friends/family - my Mum and I helped my sister and her husband buy her house, we had an agreement to which she kept. They now want to return the favour if we can find a way to do it.

ViolaLass

Did the broker think your mother wouldn't be living in the property?

Will she? (You didn't answer above)

macman

Can you really hope to service a mortgage of £125K on a joint income of just £26K?
Your mum may well be in robust health, but on a 25 year mortgage, she'll be 96 before the mortgage is paid off.