We want to buy with elderly Mum and port mortgage

sazzlejacks

Hi

We have to move house due to change of job and want to use the opportunity to buy a larger property with my widowed Mum. Our intent that she would contribute the equity from her house (no mortgage) and we would port our mortgage which is a fixed rate until 2019 in order to buy. We have seen a solicitor and my Mum's assets are below the threshold for inheritance tax and the best way seems to be to choose a tenancy in common arrangement. Much to my horror we have just been told by the mortgage company that this is not possible and we will have to rescind the mortgage as my Mum is too old (74 next month) and even though the remainder of the mortgage is more than affordable for me and my husband and they would be protected by a tenancy in common agreement they will not lend to anyone over the age of 75 for a fixed term of 10 years.

This has thrown everything into dissaray and I can't believe it- we have never defaulted on repayments and there is hardly anything left on the mortgage. Does anyone know of any elderly friendly mortgage companies? I still can't believe that this is legal in light of the equality act!

Sarah

Tiglet2

Unfortunately many lenders base the age of the "oldest" borrower when offering a mortgage. When we last moved, we were told that 70 was the upper age limit of the oldest borrower, regardless of how good a risk you are. You may think getting a mortgage just between you and your partner would be ok but if mum owns part of the property, then she will be on the title deeds and the lender would then want her to be a party to the mortgage.

I cannot be of more help unfortunately. I do hope someone with more knowledge of lenders will come along with a solution for you.

kingstreet

I've just done a 20 year mortgage where the oldest applicant was 68.

There are very few lenders who will look at this. An independent broker would be a good first port of call.

JaneyLouWho

We are in the process of moving Mum in with us - her property sale funded 40% of the purchase, our mortgage makes up the rest. We have had to treat her share as a gifted deposit and put in place a deed of trust, and there are only a few lenders around who will lend on this basis when the gifter is moving in and retaining an interest in the property. Natwest are our lender, our broker also suggested Nationwide. I would imagine there will be ways around it but perhaps not with your current lender.