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Best way to raise funds when retired

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My dad is retired and has no mortgage.

He has skin cancer and 2.5 years ago was told he'd probably live around 5 years. Currently, he is healthy and strong and there's no sign of the cancer spreading, but we know it's only a matter of time.

He wants to raise £60K to do some home improvements and travel.

He has a state pension and a private pension but no significant savings.

Myself and sibling don't have savings to give or lend him.

He doesn't want to sell his house for which he has no mortgage on.

What's the best way to raise these types of funds when you're in this situation?

Would appreciate the advice, thank you very much.
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Comments

  • Having cancer may not necessarily affect your dad's ability to get a mortgage against his home based on his state+private pension income. He will not normally be asked questions about his health as part of the application process.

    However, the lender will ask whether your income or expenses might change in the near/medium term. Tbh, I've never had a client in this situation (at least one who admitted the same to me) so don't know what exactly happens if you say that you expect to pass away in a few years.

    Just to be clear, I am not encouraging you to get your father to withhold this information from a prospective lender, but just explaining where it slots in during the mortgage process.

    An example here https://forums.moneysavingexpert.com/discussion/3746323/mortgage-granted-for-terminally-ill

    I hope he gets to travel, good luck!
  • djphig
    djphig Posts: 57 Forumite
    Part of the Furniture Combo Breaker
    Equity release might be a good way to go. There are loads of options these days - i would recommend speaking to a whole of market mortgage advisor in the first instance
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Equity release lifetime mortgage will be the way to go if he doesn't want to sell his home and has no magic money tree in the garden.
  • Verix
    Verix Posts: 241 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    I'd look in to retirement interest only mortgages before equity release personally, especially if he is worried about eating in to the potential inheritance.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Browntoa
    Browntoa Posts: 49,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 17 December 2019 at 5:37PM
    Best way IS to sell the property but you've excluded that avenue.

    Equity release/lifetime mortgages are an expensive way to borrow and in the first stages of an investigation by the FCA as borrowers are possibly being steered to unsuitable deals.

    https://www.thisismoney.co.uk/money/equityrelease/article-7780111/City-watchdog-confirms-investigation-equity-release.html
    Ex forum ambassador

    Long term forum member
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Browntoa wrote: »
    Best way IS to sell the property but you've excluded that avenue.

    Equity release/lifetime mortgages are an expensive way to borrow and in the first stages of an investigation by the FCA as borrowers are possibly being steered to unsuitable deals.

    https://www.thisismoney.co.uk/money/equityrelease/article-7780111/City-watchdog-confirms-investigation-equity-release.html


    I would agree that it will be an expensive way to raise £60,000 to travel and do some improvements.

    I would love £60,000 to p1ss away on holidays and new cars etc etc, I don't and can't take out a unsecured loan as I wouldn't be able to afford the repayments, not that any lender in the land would lend me that amount of money and no one is going to give me the money for free, cannot hope for a lottery win, so only option is to save up.

    Borrowing £60K is going to be expensive if you are 25 or 65 - at least this guy has a property that he owns outright that he has paid for so he can do with it what he likes, no mortgage lender is going to say you cannot add a second charge - if he wants £60K cash near the end of his life then he is going to have to pay for the privilege.

    Personally I would sell the property and buy somewhere outright a lot cheaper and spend the money on what ever he likes, he earned it, not long left on this world and the family cant/wont help. Yes there will be less inheritance but that will be the price to pay.

    Wish him all the luck.
  • Thanks for the advice all, that's very much appreciated.
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Well done for the free advert for Tessnimo .
    First post and your an expert on equity release.
    FSA is looking into equity release in a big way
  • LadyDee
    LadyDee Posts: 4,293 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    dimbo61 wrote: »
    Well done for the free advert for Tessnimo .
    First post and your an expert on equity release.
    FSA is looking into equity release in a big way

    Join me in reporting as spam please - these people have no conscience.
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I did press the spam button as soon as I read the comments from the new poster.
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