Mortgage advice - tricky situation

Hi, I would like some advice on my current mortgage situation please. I currently have a mortgage which I took out a few years ago for a house worth £350,000. The outstanding amount on the mortgage is roughly £140,000. I want my mum to live in the house and be the legal owner without her having to pay any monthly payments.

My mum is 65 and one year away from having her state pension however she has fairly poor credit and no current income.

Are there any options for her to get a lifetime or interest only mortgage where she doesn't pay anything monthly but they take the amount if she goes in to care or passes away. Are there any other options that may suit us better? I want to get off this mortgage so my mum can live in the house and I can get a new mortgage with my wife somewhere else.

Any advise would be great, many thanks!

Craig

Replies

  • What is it that you are trying to achieve here? Gifting your mother a house is quite generous, but very unusual. It’ll be easier for people to give appropriate advice if you could explain what’s the aim.
  • Concessionary purchase on an equity release or lifetime mortgage.

    Big risk for all concerned so make sure you are aware of the implications.

    Equity release mortgage advisor is what you want to find

  • MWTMWT Forumite
    8.1K Posts
    1,000 Posts Third Anniversary Name Dropper
    Forumite
    Hi, I would like some advice on my current mortgage situation please. I currently have a mortgage which I took out a few years ago for a house worth £350,000. The outstanding amount on the mortgage is roughly £140,000. I want my mum to live in the house and be the legal owner without her having to pay any monthly payments.
    She is going to have to take advise before she could get an Equity Release product (interest only wouldn't achieve your objective as the interest would have to be paid each month).
    Assuming she is generally healthy for her age, at 65 she is going to struggle to get close to £140,000 against a £350k valuation, would be easier if she was older.
    The advise she gets will question why the property isn't simply sold and something smaller is purchased with the proceeds...
    Also consider if it is practical for her to heat and maintain the house if her only income is the state pension.
    You need advise as well about the potential for CGT liability and the general risks and impact of this sort of transaction.

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