Interest Only Retirement Mortgages

helpdad45

Hello

I'm in need of help/advice. My dad who is 81 is looking for and IORM, after loosing my mum he still had all their creditors to pay and although his still paying them its leaving him short each month. At the moment he is with Nationwide and after talking to them this morning ( the woman wasn't very forthcoming btw) they won't entertainment him as they said firstly he needs to be on repayment and secondly he is a year over age wise. I have been looking up certain companies on the web but would love a second opinion, he has over 100% equity on his house and would be more than capable of paying the new mortgage.

TIA

HD45

[Deleted User]

helpdad45 wrote: »

he has over 100% equity on his house and would be more than capable of paying the new mortgage.

What do you mean by this?

100% would be the maximum, assuming he has no mortgage. Does he currently have a mortgage? Or is he looking to release equity?

Or are you talking about a second property?

helpdad45

sorry what I meant was that he has for instance a 60k IOM and his house is worth 120k now

davidmcn

helpdad45 wrote: »

sorry what i meant was that he has for instance a 60k iom and his house is worth 120k now

60/120 = 50%

tacpot12

So he has a repayment mortgage with the Nationwide already, and he wants to switch to an interest only mortgage to save money.

How long until his debts are cleared? Is his plan to revert to a repayment mortgage when the debts are clear, or does he want to continue on an interest-only basis until he dies?

Have you spoken to any Mortgage Brokers to see if they can help?

helpdad45

my apologises

ACG

Have you spoken to a broker?
It might be worth speaking to one who is able to advise on equity release.
Equity release can still be treated like an interest only mortgage with some lenders or he does not have to make any payments each month, but a broker who is qualified could go through those options (Im not qualified in ER so my knowledge is limited).

helpdad45

Right now he has an interest only mortgage, what he wants to do is consolidate the creditors into that mortgage. He still has roughly 5 years, one of them is a second mortgage.

tacpot12

You need to find a lender where he can meet their lending criteria. You will have to investigate this with the lenders or find a broker who can help you do this.

xyz123

helpdad45 wrote: »

Right now he has an interest only mortgage, what he wants to do is consolidate the creditors into that mortgage. He still has roughly 5 years, one of them is a second mortgage.

Why cant you out all the information in first place so people can help better. What is this "second mortgage".. If he has mortgage on two houses, ask him to sell one and then downsize...

Even if he has one mortgage is he able to downsize?

helpdad45

Because right now I'm sorting a funeral as well as my disabled dad and his finances and my mum died, I cant think of it all right now!! The second mortgage is on the one house, not a second house.