We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Lifetime mortgage - Is this the right option?
_jem__2
Posts: 7 Forumite
Hello! 
I'm looking for some advice please if possible.
My grandfather recently passed away and, not long after (terrible timing), my grandmother received a letter from Nationwide advising her that her interest only mortgage will be coming to an end in just under 5 years and, naturally, she is now very worried about this as she has approx £34k left to pay on a basic pension.
My grandfather didn't have an awful lot of money and the only life insurance policy he had didn't even pay out enough to cover his very modest funeral so we didn't receive any funds when he passed away to help with mortgage costs.
I have been left the property in my grandmother's will and will inherit it when she passes. I am trying to think of the best way to put her mind at ease and to also keep the house in the family as my husband and I have decided that we would like to live in the property when the time comes.
A few friends have suggested that we apply to take over the mortgage for a longer term so that we can pay it back for her and then she just pays us a small amount to help - the amount she would have been paying in interest for example.
I have spoken to an independent insurance broker briefly this morning who initially recommends that she takes out a lifetime mortgage instead as this will be the easiest option and avoids any legality issues that would occur if we mortgaged the house and took over ownership but she still lived there. He said that, when she passes, I would then inherit the property as per her will and then I could mortgage it myself (or with my husband). I am unsure that a lifetime mortgage would even be possible as she is 85, nearly 86. Also, everything I have read so far says that, when the person passes, the house will be sold to cover the outstanding mortgage. How would I stand with this when I inherit the property?
To add to it all, I am rather confused and annoyed that Nationwide allowed a 66 and 78 year old to take out a 25 year interest-only mortgage in the first place!
Any advice regarding the best way to proceed would be greatly appreciated.
Stay safe out there
I'm looking for some advice please if possible.
My grandfather recently passed away and, not long after (terrible timing), my grandmother received a letter from Nationwide advising her that her interest only mortgage will be coming to an end in just under 5 years and, naturally, she is now very worried about this as she has approx £34k left to pay on a basic pension.
My grandfather didn't have an awful lot of money and the only life insurance policy he had didn't even pay out enough to cover his very modest funeral so we didn't receive any funds when he passed away to help with mortgage costs.
I have been left the property in my grandmother's will and will inherit it when she passes. I am trying to think of the best way to put her mind at ease and to also keep the house in the family as my husband and I have decided that we would like to live in the property when the time comes.
A few friends have suggested that we apply to take over the mortgage for a longer term so that we can pay it back for her and then she just pays us a small amount to help - the amount she would have been paying in interest for example.
I have spoken to an independent insurance broker briefly this morning who initially recommends that she takes out a lifetime mortgage instead as this will be the easiest option and avoids any legality issues that would occur if we mortgaged the house and took over ownership but she still lived there. He said that, when she passes, I would then inherit the property as per her will and then I could mortgage it myself (or with my husband). I am unsure that a lifetime mortgage would even be possible as she is 85, nearly 86. Also, everything I have read so far says that, when the person passes, the house will be sold to cover the outstanding mortgage. How would I stand with this when I inherit the property?
To add to it all, I am rather confused and annoyed that Nationwide allowed a 66 and 78 year old to take out a 25 year interest-only mortgage in the first place!
Any advice regarding the best way to proceed would be greatly appreciated.
Stay safe out there
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards