Lifetime mortgage

shaz65

Hi I'm needing to sell my house to give my ex his share now my daughter is 18.
I'm 58 and unable to get a mortgage of 90000 to pay him off.   I unfortunately do not have enough to down size to a smaller property.  I have only two years left until the house is paid for.   Someone mentioned a lifetime mortgage but pay the interest off each month.  Eventually not that I like to think of it I will inherit half of my mothers house so I wld then be able to pay the borrowed money back.
My daughter has high anxiety possible autism and son 19 adhd , with autism so they do not want to move away.
Has anyone done this and has anyone got any views on if this is a good route to go down.  Many thanks one stressed out , worried lady 

Chris_English

That sounds like a very expensive option, given your age.

When you say that you don't have enough to downsize, what do you mean by that? It sounds as though you'll have the best part of £90,000 once you sell, plus whatever savings you have, which should be ebough for a deposit on something new.

Given the difference in interest rates, wouls it not make more sense to take your deposit, get a new mortgage for 15 years, and use that to buy somewhere new?

shaz65

Thanks for replying,    I owe my ex 90,000.  So I need to raise this amount to give to him.  I will have 200000 which is not enough to buy somewhere to live and I don't want to waste it renting on paying someone's mortgage.   Both kids have issues so I wld like to able to leave them some money/a home.

MWT

I'm not sure the amount you could release would be enough for what you plan, but as a rough guide you could probably release around 25% or so of the value at your age, but you would have to pay off the existing mortgage immediately, so do consider if there would be any ERC due on that.

This is not generally a good option at your age, but there are always exceptions, but start from there and see if the numbers are even close to what you need based on the value of your house, the cost to pay off the mortgage now and your need to pay your ex.

Another factor is the type of property you have and its current state of repair, the lenders do not have much appetite for risk so they are picky when it comes to location (no commercial adjacencies), type of construction etc. and they expect it to be well maintained both inside and out.

steampowered

What have you done to try and secure a mortgage. Have you spoken to a mortgage broker, or did you only speak to your bank? 

Do you have sufficient income to justify a £90k mortgage?