Information on my parent buying a second house

leestafford

Hello, 
My mother has recently paid off her mortgage, she's 62.
Zoopla values the house at around 100k.

I am asking for advice on her being able to get a homeowner loan or remortgage (I'm not sure how these work) up to £60,000 to buy a flat. 

Is it likely that she'd get anything at her age? If the money is going on property, will she stand more of a chance?

Thanks in advance for your time and answers. 

JGB1955

Does her income support a £60K loan over (maybe) 13 years?

Ignore Zoopla values - what have nearby identical houses actually sold for?

K_S

leestafford said:

Hello, 
My mother has recently paid off her mortgage, she's 62.
Zoopla values the house at around 100k.

I am asking for advice on her being able to get a homeowner loan or remortgage (I'm not sure how these work) up to £60,000 to buy a flat. 

Is it likely that she'd get anything at her age? If the money is going on property, will she stand more of a chance?

Thanks in advance for your time and answers. 

@leestafford The age by itself is not an issue. It may take some lenders off the table but there will be still be lenders willing to consider as long as she can evidence post-retirement income (if you need a term that extends past retirement/70).

However, her income needs to support the amount of borrowing required and be sustainable for the term of the mortgage.

The cash raised being used to buy property will not make a difference in itself, however it may give her an option to take out the mortgage on an interest-only basis, with the exit plan being sale of one of the properties (assuming that is plausible). The lender will want to know the purpose of buying a second property as well.

leestafford

JGB1955 said:

Does her income support a £60K loan over (maybe) 13 years?

Ignore Zoopla values - what have nearby identical houses actually sold for?

Thank you for your reply.
In 13 years she'll be 75. She works and has no debt.
Her income isn't huge - supermarket worker.
There's hardly any sold nearby. Only one in the past 12 months, same house type, £92,500.

leestafford

K_S said:

leestafford said:

Hello, 
My mother has recently paid off her mortgage, she's 62.
Zoopla values the house at around 100k.

I am asking for advice on her being able to get a homeowner loan or remortgage (I'm not sure how these work) up to £60,000 to buy a flat. 

Is it likely that she'd get anything at her age? If the money is going on property, will she stand more of a chance?

Thanks in advance for your time and answers. 

@leestafford The age by itself is not an issue. It may take some lenders off the table but there will be still be lenders willing to consider as long as she can evidence post-retirement income (if you need a term that extends past retirement/70).

However, her income needs to support the amount of borrowing required and be sustainable for the term of the mortgage.

The cash raised being used to buy property will not make a difference in itself, however it may give her an option to take out the mortgage on an interest-only basis, with the exit plan being sale of one of the properties (assuming that is plausible). The lender will want to know the purpose of buying a second property as well.

Thank you for replying. 
I was thinking of moving into the new property. 
My income isn't suitable for a mortgage, 1st year of self-employment, I'm almost 40 and I was thinking this option might be better. (I don't live at home at the minute! I moved out years ago!)

sammyjammy

Please don't do that to your Mum.  Plenty of people buy their first property after the age of 40.

leestafford

sammyjammy said:

Please don't do that to your Mum.  Plenty of people buy their first property after the age of 40.

I'm onto my second mortgage. I don't have a lot of equity but could sell the place and wouldn't earn much but lose nothing. 

Thrugelmir

leestafford said:

JGB1955 said:

Does her income support a £60K loan over (maybe) 13 years?

In 13 years she'll be 75. She works and has no debt.
Her income isn't huge - supermarket worker.

It's the mortgage lender that needs to be convinced. 

leestafford

Thrugelmir said:

leestafford said:

JGB1955 said:

Does her income support a £60K loan over (maybe) 13 years?

In 13 years she'll be 75. She works and has no debt.
Her income isn't huge - supermarket worker.

It's the mortgage lender that needs to be convinced. 

so really, it's just like going through the mortgage process again?
It's not like.... "you're definitely going to loan me £50,000 because I've got a house worth £90,000?"