Mortgages for old & disabled people

davidmcn

Shauna87 wrote: »

So, could this still be an option?

No, it's a benefit to help people who already have a mortgage and would otherwise struggle to keep up with the repayments - not a means to get a new mortgage.

AnotherJoe

Shauna87 wrote: »

I should clarify.

Long term security in regards to retaining wealth in the family.

She was advised to buy the place by by aunts and uncles 20 years ago who all did the same. They've all made tens of thousands of pounds since then as property prices increased 3 or 4 fold.

That isn't long term security. It's greed. Hopefully it will be put to an end soon. And it certainly will do nothing for your mother and if she relapsed it would be catastrophic but hey ho no doubt the family vultures could swoop in and grab some money

ACG

Support for Mortgage interest is no longer a benefit, it is a loan. The government would want that paying back.

In terms of can you mum get a mortgage, it sounds like she would overcome one obstacle which is credit history. She would also need to overcome affordability. Not many lenders allow benefits as a sole (or major part of) income. So options there would be slim. Even if there are options it still needs to pass affordability.

If you assume the house is valued at £200k and she gets 60% off, that would mean a purchase price/mortgage of £80k. At 55 that would mean she could probably get around 3.5x her income. That would mean her benefits income would need to be around £23k.

Obviously this is all very ball park as there are not really any figures to go off.

In terms of family wealth, this may not even help. If your mother needs care down the line. The first thing the council will look at is your mothers assets and they would have first dibs on the house to pay for it. RTB is there to give people security. Your mum would become liable for ANY costs on the property. The last storm we had a few weeks ago cost me a couple of hundred pound to put some damage right. The boiler goes, your mum becomes liable, building insurance - your mums responsibility.

csgohan4

OP I hope you know what your getting yourself in for, a couple of hundred to support may not be enough.


Good luck, I hope you get what you deserve. Social housing is to help those in need, not to help people get inheritance at the tax payer's expense.


https://forums.moneysavingexpert.com/discussion/5856039/service-charge-being-billed-for-5000-major-works


https://forums.moneysavingexpert.com/discussion/5789909/new-roof

elsien

I think I may have read somewhere that mortgage providers tend not to like taking benefits such as PIP into account because a) for some people they are variable as their health needs change and b) government policy around benefits may also change.

With regards to the question:
What I do know is that although she might not be able to repay the mortgage in her lifetime, this is with a view of the property being left to me in future to take over the mortgage.. Is this usual practice?

No it's not normal practice. If the house is mums and the mortgage is in her name (which it will be if she's the tenant with the RTB) then when she dies the estate would have to pay off the remaining amount owed to the mortgage company plus anything she may owe in deferred payments if she has needed to go into care. Unless you meet the affordability criteria to remortgage to cover these costs it may have to be sold to pay out these costs plus whatever mum leaves to other beneficiaries in her will.

ytfcmad

Shauna87 wrote: »

I should clarify.

Long term security in regards to retaining wealth in the family.

She was advised to buy the place by by aunts and uncles 20 years ago who all did the same. They've all made tens of thousands of pounds since then as property prices increased 3 or 4 fold.

You dont have any wealth!

Never understood this spongers charter.

JenGill23

Does anyone know if a SMI loan is taken out on property that has a joint mortgage of a divorced couple, do both parties have to sign the paperwork ?
Also how does it affect the share of the of the owner for hasn’t taken out the loan, and will it be added to the deeds of the house ?

ACG

Both owners are 100% liable for the mortgage payments. That means if one person can not afford it, the other has to pay it.

I could be wrong, but I would expect SMI to be paid off with the equity in the whole property regardless of who owns what share.

But you could call the DWP.

silvercar

JenGill23, please start your own thread so the answers to the original poster dn't get confused amongst the answers to your question.