First Mortgage for my parent at age 61

frugalandsave

Hey everyone, I am just looking for some guidance to buying a home for my mum at age 61. 
We are currently trying to plan for her retirement eventually and that she doesn't struggle to much financially. Part of this we were looking at housing, she is renting at the moment. 
I looked into whether I could get a BTL and rent it out to my mum, but it seems very difficult to get as lenders tend not to favor BTLs for family members.
So I want to look into the option of whether my mum could buy a house instead. It seems favorable from the outset as the mortgage repayments could be less every month compared to what she pays in rent at the moment and there is no stamp duty as she would be a first time buyer. 
Here some details:
Wage: 16k a year and another 5 years to State Pension
Age: 61
Deposit: I could give my mum 10-15 % of deposit towards a purchase. 
Property: Where she lives some properties go for like 70 K for a mid Terrance 2 bed house. 
Mortgage: According to some online calculators she may qualify for a mortgage between 50-70 K. A 15 year mortgage on 63k at 2.6 % would be about £425 a month.
Rent: She currently pays £550 for rent. 
She has good credit score, no missed payments on CC. She only has a loan of about £250 a month towards Dental care she needed, which will run for another 2 1/2 years. 
I am thinking about contacting a broker to get some help with this. 
Do you think lenders would consider this circumstance for a mortgage? 
Cheers,
FS

K_S

@frugalandsave The sticking point is going to be her age and hence the maximum term. Most lenders will only lend up to 70 based on employed income so that would mean a maximum term of 8 years. But there are a few that may consider lending up to 75 (so max term of 13 years) on employed income depending on the kind of job. The full state pension (around £750 afaik) being significantly less than her currently employed income is unlikely to allow lending to go past retirement.

Given the relatively low income and restricted term, the £250 monthly loan payment will also be a significant drag on her affordability. For example the max borrowing for a 8 year term will jump from around 35k to 50k if that monthly loan commitment were not there.

I would recommend getting in touch with a broker to see what options may be available.

frugalandsave

Thanks I have reached out to my broker and will see what he says :-). 
I could also clear the Loan for her if that increases her chances of a mortgage.
 

frugalandsave

Would it be an option if my partner where to buy a home with my mother also on the application? My partner is not on the mortgage for our home and she doesnt own another home.