Older mortgage ?

Misteek

poseidon1 said:

Misteek said:

poseidon1 said:

Misteek said:

poseidon1 said:

Misteek said:

Can you get a mortgage on a pension income of about 900 pounds? If so what's the maximum. The individual is 65. With a large deposit up to half the value of the house.

I was intially refused point blank a Barclays mortgage despite tens of thousands of pounds of annual investment income.

However the moment the state pension came on stream at £ 800+ per month they were happy to pony up £54k mortgage to age 84 albeit this represented only a small fraction of the property value.

If £900 ( per month?) is the entirety of their income, unlikely to pass affordability tests.

 Could look at equity release ( which I will be doing eventually as rates fall ) but if their deposit only covers half the purchase price this would be a challenge also.

Sorry everyone I should have clarified it. Its 900 pm.

No other loans etc.

She's never had a mortgage and also a RTB and her son can help with some money too. Maybe gift to her. 

If RTB and her landlord has since given her the sale price valuation, then the clock is rapidly ticking for her to get her act together ( 12 weeks from offer date). 

At only £900 pm income ( sounds suspiciously like the state pension although you don't clarify), it is almost certain her son will have to come up with the lion's share of the purchase price with only a comparatively small contribution from a mortgage, given her tiny income.

You say half value for the house available as deposit, is this what is coming from the son or are these her own monies? If from the son, he may need to dig deeper for this to be a viable proposition. 

12 weeks from the valuation date? Well she has been given a date for the valuation which will be in 3 weeks. Can she delay it and ask for a different date to get abit more time? The council are struggling with backlogs atm due to high level of rtb1 forms they have recieved.

When I said she has 50 percent. I was referring from the transformer discount as she has lived there for over 30 years. 

Yeah I think she is getting the state pension. 

It seems the Labour government  deliberately introduced a new three week window terminating on   21 November 2024 for applications under the old discount levels, precisely to try and minimise the inevitable avalance of people suddenly  waking up to a generous benefit soon to be significantly curtailed. 

Perhaps had you lead this thread with the fact this is a RTB scenario, with the clock counting down rapidly  in trying to construct a meaningful buying strategy, we may have got to heart of the issue sooner.

As it now stands, the outlook seems bleak without a large inward lump of money from son. Mum is unlikely to present an appealing prospect for mortgage lending in her own right, notwithstanding the sizeable discount on the property value.

 She is going to fail mortgage lending affordability criteria by a country mile.

 The days when lenders irresponsibly handed out mortgage funding on the basis of a nod and wink are long since past, and one can expect an almost forensic analysis of one's income and expenditure before seeing relatively modest loan offers  made in these kind of circumstances.

I totally understand.

But would the council change the sate for evaluation? So the 12 weeks starts later? Maybe she cam borrow the money off other family/ friends in exchange for a charge on the deeds so she has to pay them back instead

newsgroupmonkey_

What we don't understand here is the value of the property.

If the property is a 1 bedroom flat in the North East and it's worth £50k or less, then yes, she should be able to get a mortgage for that.

If it's a 3 bedroom semi in London that's over a million, then no.

Jude57

Misteek said:

poseidon1 said:

Misteek said:

poseidon1 said:

Misteek said:

Can you get a mortgage on a pension income of about 900 pounds? If so what's the maximum. The individual is 65. With a large deposit up to half the value of the house.

I was intially refused point blank a Barclays mortgage despite tens of thousands of pounds of annual investment income.

However the moment the state pension came on stream at £ 800+ per month they were happy to pony up £54k mortgage to age 84 albeit this represented only a small fraction of the property value.

If £900 ( per month?) is the entirety of their income, unlikely to pass affordability tests.

 Could look at equity release ( which I will be doing eventually as rates fall ) but if their deposit only covers half the purchase price this would be a challenge also.

Sorry everyone I should have clarified it. Its 900 pm.

No other loans etc.

She's never had a mortgage and also a RTB and her son can help with some money too. Maybe gift to her. 

If RTB and her landlord has since given her the sale price valuation, then the clock is rapidly ticking for her to get her act together ( 12 weeks from offer date). 

At only £900 pm income ( sounds suspiciously like the state pension although you don't clarify), it is almost certain her son will have to come up with the lion's share of the purchase price with only a comparatively small contribution from a mortgage, given her tiny income.

You say half value for the house available as deposit, is this what is coming from the son or are these her own monies? If from the son, he may need to dig deeper for this to be a viable proposition. 

12 weeks from the valuation date? Well she has been given a date for the valuation which will be in 3 weeks. Can she delay it and ask for a different date to get abit more time? The council are struggling with backlogs atm due to high level of rtb1 forms they have recieved.

When I said she has 50 percent. I was referring from the transformer discount as she has lived there for over 30 years. 

Yeah I think she is getting the state pension. 

If she's 65, she won't be getting State Pension because for those born in 1959/60 State Pension age is 66. She's more likely to be receiving an occupational pension and unfortunately, Pension Credit can only be claimed by those over State Pension age. If she has a full contribution record though, once she reaches State Pension age her income will double, based on current rates.

As someone in the exact financial situation of your friend, and as a Council tenant, nothing would persuade me to buy my flat. If your friend lives in a house I might think differently but if she lives in a flat, I wouldn't consider it because of the potential for very high costs for work to the fabric of the building. For example, my Council are currently installing brand new double glazing, a new heating system, new insulation and ventilation and new electrical systems in my block, all free to tenants but compulsory for every resident and the cost for leaseholders is, I understand, over £30,000. This is because of the high costs of installation of windows and other external items at height, factoring in scaffolding etc. Then there's the ease with which I could, if necessary, move to retirement housing or supported housing which isn't so easy if you own your home.

Jude57

Hoenir said:

TadleyBaggie said:

Suspect this a monthly figure.

Barely enough to live on . 

It is indeed, as I know all too well. Unfortunately, it's also 'too much' at age 65 if it's occupational pension, to qualify for other benefits except for Council Tax Reduction which fortunately for me, my Council does offer. 

teaselMay

I share Jude57's wondering why she wants to buy. If she has a secure tenancy there aren't many advantages to her buying especially as even if it's possible it's going to be a battle, and she'd have all the maintenance costs.

Have you put the figures in a mortgage calculator OP?

dinosaur66

i asked my mother could i buy her council property in london in the 90s / my mother had no savings or income and would have been early 50s

i had to move into the property and pay council rent and poll tax for a year before i was allowed to actaully buy the property

had council inspectors actually come round in the evening to check i was living there / cannot remember how far into the process this was 

 but the council gave an 18 month hold on the quoted price in the 90s

never new until reading this thread that the window is now so tiny just a few weeks

Bookworm105

teaselMay said:

I share Jude57's wondering why she wants to buy. If she has a secure tenancy there aren't many advantages to her buying especially as even if it's possible it's going to be a battle, and she'd have all the maintenance costs.

Have you put the figures in a mortgage calculator OP?

probably the usual reason for most RTB -  her son sees the chance of a "free" inheritance from his otherwise almost destitute mother.?

Son likely does not understand the implications of having to pay his share of repair bills on a block of flats...

Misteek

Thank you. It's a house and not a home.