Taking out a mortgage to pay for care home bill

andrewjemima

Hi everyone
Advice please - I have just been on the phone to Coventry Building Society who tells me that they cannot lend me the money because their criteria does not cover care home bills.
Situation - I inherited a property from my late mother, this is currently being rented out. Now I have the care home bill to pay (£30K) and we were wanting an interest-only mortgage off this inherited property to pay this bill and use the rental income to pay for the mortgage in the shortest time possible with regular overpayments.
Anyone can advise me whether a mortgage company - bank or building society - will lend me the money, does their criteria include care home fees? Or do we have to go for a bank loan? Or take out a mortgage on our own property (which is what we don't want to do since we hope to move house shortly).
We have no other way to pay the care home fees so your advice would greatly be appreciated.
Thank you.

MovingForwards

How much is the rental worth?
How much mortgage do you have on it?
Is it a buy to let mortgage?
Why didn't you sell the property to clear the debt? 
Have you spoken with a broker to see what options are available?

Thrugelmir

Has your late mothers estate been wound up yet? Probate been granted? 

ACG

Try a different lender. Check upfront if they will lend for this purpose, there will be lenders who will. 

andrewjemima

MovingForwards said:

How much is the rental worth?
How much mortgage do you have on it?
Is it a buy to let mortgage?
Why didn't you sell the property to clear the debt? 
Have you spoken with a broker to see what options are available?

andrewjemima

MovingForwards said:

How much is the rental worth?
How much mortgage do you have on it?
Is it a buy to let mortgage?
Why didn't you sell the property to clear the debt? 
Have you spoken with a broker to see what options are available?

Hi MovingForwards,
Thanks for your message - my reply to each Q is:
Over £800 per month before fees etc.
Mortgage-free property
I was advised to use a buy-to-let mortgage , but is that right? I'm not buying it to let it out, I already own the property and its already rented out. (When my mother moved into a care home, we had it rented out while she was in care). Just need cash from the property!
We decided not to sell it so that I can have an income to supplement my part time earnings.
No, not yet spoken to a broker, but could do that at some point.
Thanks :-)

andrewjemima

Thrugelmir said:

Has your late mothers estate been wound up yet? Probate been granted? 

Yes completely, all done last year. Property has been transferred to my and husband's names so the property is now in our names. We had waited until this point before phoning the building society.

andrewjemima

ACG said:

Try a different lender. Check upfront if they will lend for this purpose, there will be lenders who will. 

Thank you, we will do that - I hope there are lenders who will! We are keen to find a lender with unlimited overpayments, Coventry BS was one of them but criteria doesn't match! 
As a mortgage adviser - are you able to advise which BS/bank can lend on this criteria?? Thank you

I_Love_comps

How has the amount of been of money been allowed to accumulate to 30k , as surely your mothers care home fees should have been paid on a monthly basis

Thrugelmir

andrewjemima said:

Thrugelmir said:

Has your late mothers estate been wound up yet? Probate been granted? 

Yes completely, all done last year. Property has been transferred to my and husband's names so the property is now in our names. We had waited until this point before phoning the building society.

Why weren't the care fees owing settled by the executors of the estate? 

xylophone

We decided not to sell it so that I can have an income to supplement my part time earnings.

Why not sell the property, pay the care home fees, and invest the balance to provide a supplement to your income?