Older In-Laws want to buy a house..need urgent advice please!!

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ferry
ferry Posts: 2,008 Forumite
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in Mortgages & endowments
Hi all
I hope someone can advise me.
My In Laws want to buy a house that they have viewed to upgrade from the 2 bed maisonette they currently own.
They are mortgage free at the moment but the house is 25 k more than the maisonette they have.
Facts:Mother in law is 55 and father in law is 67.Mother in law is still working and can prove income,though at this stage not sure what that is.

Not sure how to advise them really-is it advisable to consider a mortgage for the 25k difference or they being a bit unrealistic at their age.Indeed will anyone lend against their circumstances or will it be akind of 'specialist' type loan?
Any advice greatly appreciated as usual..need to know which direction I could guide them in..

Terry...
:j

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  • cattie
    cattie Posts: 8,841 Forumite
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    With such a low morgage amount, there will only be a couple of mainstream lenders who are willing to offer such an amount, Nationwide being one lender who will.

    Because of your MIL's age, any mainstream lender willing to grant a mortgage is likely to want it repaid by her state retirement age. Their only concern is likely to be that of affordabilty on this score.

    If they are able to use a mainstream lender it will be better for them as the rates will be more competitive than from a 'specialist' company
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    cattie wrote:
    With such a low morgage amount, there will only be a couple of mainstream lenders who are willing to offer such an amount, Nationwide being one lender who will.
    According to a https://www.moneyfacts.co.uk search, there are dozens of 'mainstream' lenders willing to advance £25K to a 55 year old.

    I suspect if you enter £25,001 there will be many more.

    As you say though, the main barriers to overcome will be loan duration, and salary/pension details.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
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    cattie wrote:
    Because of your MIL's age, any mainstream lender willing to grant a mortgage is likely to want it repaid by her state retirement age. Their only concern is likely to be that of affordabilty on this score.

    Try Abbey.

    I had a mortgage with them, and they were quite happy for it to continue until we would have been 83.

    Aunty Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • Froggitt
    Froggitt Posts: 5,904 Forumite
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    Woah there.......as well as paying the annual interest of maybe £1500 a year, theres also the £25,000 to pay of in maybe five years......thats about £6,500 a year on top of existing outgoings. Is this affordable? The alternative, ie not paying it off, means that the £1,500 continues throughout retirement and on death, the £25,000 remains as a debt that requires payment.
    illegitimi non carborundum
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