Age 58 with a small deposit

iamclaire

Hello all

Is there anyone on here who has got a mortgage or shared ownership house or bungalow when they are retired and on disability benefits!  My partner is my carer and I have a small private pension and disability benefits!  We have no debt and I also have a £5000 deposit!  We live in Northumberland where property is cheaper!  Would I stand a chance at 58 getting a mortgage on a £60000 property or less for 15 years with £21000 annual take home!  We are always renting and we are actually sick of being moved on at our age and disability status!  My partner only cares for me he’s not working!  I don’t know what else to do renting is so precarious now and hardly ever long term!  I’m scared we will be homeless at this rate!  I was offered a mortgage for a shared ownership house at 55 but of course I’m older now and the mortgage market has changed!  Can anyone help?  Would it be worth seeing a mortgage advisor?  Thanks 

PK_London

It looks incredibly unlikely that you will be able to secure a mortgage. £5000 is already low for a deposit. Factor in legal costs, moving costs. You're already retired that wont count for you. Does the income from your benefits and pension leave you with enough to service the mortgage? Have you spoken to a broker? They offer free advice. On the face of it, renting might be your only option sadly.

K_S

iamclaire said:

Hello all

Is there anyone on here who has got a mortgage or shared ownership house or bungalow when they are retired and on disability benefits!  My partner is my carer and I have a small private pension and disability benefits!  We have no debt and I also have a £5000 deposit!  We live in Northumberland where property is cheaper!  Would I stand a chance at 58 getting a mortgage on a £60000 property or less for 15 years with £21000 annual take home!  We are always renting and we are actually sick of being moved on at our age and disability status!  My partner only cares for me he’s not working!  I don’t know what else to do renting is so precarious now and hardly ever long term!  I’m scared we will be homeless at this rate!  I was offered a mortgage for a shared ownership house at 55 but of course I’m older now and the mortgage market has changed!  Can anyone help?  Would it be worth seeing a mortgage advisor?  Thanks 

@iamclaire It isn't clear how much %/£ the share is, what the property value is, rent on the HA (Housing Association) owned part, etc. but if you're talking about a share value of 60k and a 5/10% deposit, with a 21k sustainable income, it's likely to be very tight on affordability due to the income level, impact of rent on the HA share and the limited term. The deposit itself is fine for an SO mortgage.

I recommend that you find a specific property example and go to a broker (ideally one with SO and later-life lending experience) with it so they can look at the whole picture (there might be relevant information that you've missed adding) and give you a realistic idea of your options (if any). You could either use google or speak to the HA as they'll usually have a tie-up with a broker that knows SO well.

I also know of a 55+ SO scheme called OPSO (Older People's SO) which has a few pros/cons over standard SO, though I don't have any first hand experience of OPSO purchases.

Good luck, I hope you're able to find what you're looking for!

MovingForwards

Are you on the council and housing association property waiting lists? Being older and having health issues may see you being allocated a property sooner.

It is possible to secure a mortgage while on disability benefits, depending on the PIP / DLA award.

UC would cover the rent element of a shared ownership, however you're 100% responsible for all repairs, they're not apportioned by how much you own.

Obviously if that £21k includes the UC housing element or housing benefit, that won't be counted towards your income.

ACG

Ive just put £21k, 15 year term, 2 applicants, no debt/dependents on a lenders affordability calculator and its coming back at £60,000 with a 5% deposit. 

Looks doable, but it will come down to the finer details.