Extending mortgage term post 65 years old

NotMyName

Hi all,

Asking for opinions here please, on behalf of my parents. Their I/O mortgage is due to complete at the end of this year, but they don't have the funds to pay off the balance. They have been making capital payments, in addition to the interest, but there will still be a balance due in December (full transparency, I borrowed money from them, and now due to my personal circumstances am unable to pay them back - I know, this is bad and I feel very guilt about that). 

Dad is 64 and working, mum is 63 and doesn't work due to health issues. 

They want to request an extension on their (Barclays) mortgage for a couple of years, to be able to pay down the remaining balance. The added complication is that dad is currently receiving treatment for skin cancer. There is no terminal prognosis etc., so no expectation that he will either be gone or unable to keep working (he's self employed, and still earning). 

Does anyone have experience of this type of situation? How did the mortgage lender respond? Will the cancer be considered a major issue?

Any advise or similar experience shared would be greatly appreciated. Thanks!

amnblog

The Lender is?

NotMyName

amnblog said:

The Lender is?

The lender is Barclays

Keep_pedalling

How much is outstanding? 

NotMyName

Keep_pedalling said:

How much is outstanding? 

Will be around £27k at the end of this year

MWT

Even if they cannot extend the current IO mortgage, if the balance is low enough, and your fathers continued earning potential is credible and high enough, they may be able to get a standard repayment mortgage...

NotMyName

MWT said:

Even if they cannot extend the current IO mortgage, if the balance is low enough, and your fathers continued earning potential is credible and high enough, they may be able to get a standard repayment mortgage...

With the same lender, or you're suggesting going out to the wider market? So essentially a basic remortgage...? How do lenders deal with people that are 65+ ?

MWT

NotMyName said:

MWT said:

Even if they cannot extend the current IO mortgage, if the balance is low enough, and your fathers continued earning potential is credible and high enough, they may be able to get a standard repayment mortgage...

With the same lender, or you're suggesting going out to the wider market? So essentially a basic remortgage...? How do lenders deal with people that are 65+ ?

Both are options, the brokers on here will confirm that these days there are ordinary repayment mortgages available past 65 all the way up to 80 in some cases, as long as the income is sufficient and the ability to earn is credible, so typically not physical labour, but desk based occupations for example.

There are also specialised retirement products based on guaranteed retirement income, but that doesn't seem likely to be needed in this case from what you've said so far, or necessarily suitable as they stress test both partners income separately.

Keep_pedalling

MWT said:

Even if they cannot extend the current IO mortgage, if the balance is low enough, and your fathers continued earning potential is credible and high enough, they may be able to get a standard repayment mortgage...

With only £27k outstanding that should be straight forward. 

simon_or

My broker previously put me with Barclays with a term that went to 80 years based on a retirement age of 80, so nothing to do with pension, etc. I'm now with Accord and again to 80. Lots of banks are ok with lending up to a high retirement age as long as you aren't in a manual line of work.

I was/am much younger than your dad but it should still be possible, speak to Barclays sooner rather than later. With a 27,000 mortgage you might not even need a particularly long term.