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  • FIRST POST
    • BML
    • By BML 17th Apr 18, 9:32 AM
    • 129Posts
    • 5Thanks
    BML
    Mortgage for the over 80s?
    • #1
    • 17th Apr 18, 9:32 AM
    Mortgage for the over 80s? 17th Apr 18 at 9:32 AM
    I would like to add a floor to the bungalow I live in so I can fit my children in when they wish to stay and have no idea what it would cost but whatever it is I doubt that my savings would cover it. As a realist I recognise that I may not survive long enough to pay a loan off so does anyone know of a trustworthy organisation that offers such loans. I did find the following on the Internet and 2.9 looks generous!
    Specialist Mortgage Advice. Save Money & Great Low Rates. Contact Us Now!
    Types: Interest Only, Capital, Buy To Let, Right To Buy, Residential, Expats, Self Employed, Foreign Nationals
    Exclusive Deal No Max Age - 2.99% Interest Only
Page 1
    • amnblog
    • By amnblog 17th Apr 18, 4:25 PM
    • 10,460 Posts
    • 4,132 Thanks
    amnblog
    • #2
    • 17th Apr 18, 4:25 PM
    • #2
    • 17th Apr 18, 4:25 PM
    Please do not respond to an advertisement like the one above.

    Adding a floor sounds like a major job, are your footings deep enough for another floor? Will you get planning permission?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • BML
    • By BML 17th Apr 18, 5:11 PM
    • 129 Posts
    • 5 Thanks
    BML
    • #3
    • 17th Apr 18, 5:11 PM
    Mortgage for the over 80s?
    • #3
    • 17th Apr 18, 5:11 PM
    Maybe I should have said that prior to going to university thereby becoming unemployable and having to go into Human Resources Management I served an apprenticeship as a Bricklayer. I also had an extra floor added to the last place we lived which was a great adventure. In that case we had a series of steel post set into the ground with other steel post attached to them laterally to provide a secure structure to build on. The group of bungalows along the road where I live have all had extra floors added with the exception of mine but now I need the extra space.
    Why did you advise not to respond to an advertisement like the one I mentioned?
    • kingstreet
    • By kingstreet 17th Apr 18, 5:21 PM
    • 33,351 Posts
    • 18,042 Thanks
    kingstreet
    • #4
    • 17th Apr 18, 5:21 PM
    • #4
    • 17th Apr 18, 5:21 PM
    This could be a good reason;-

    There will be a fee for our services, the precise amount will depend upon your circumstances, however we estimate that it will be 1495 in total and never more than 2% of the mortgage amount. The fee is typically payable 495 upfront with the balance due immediately on completion. The fee will be refunded if we fail to secure you an agreement in principle based upon the information your provide in the FactFind. You will not receive a refund if, having undertaken the FactFind, you provide inaccurate information, choose not to accept our recommendation or withdraw from the mortgage process.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • BML
    • By BML 17th Apr 18, 10:57 PM
    • 129 Posts
    • 5 Thanks
    BML
    • #5
    • 17th Apr 18, 10:57 PM
    • #5
    • 17th Apr 18, 10:57 PM
    I asked a young friend their opinion and they wrote the following. If it's true I find it horrific and near enough usury.
    "Anyway. These loans work on compound interest which means that the longer you have it, the more it costs in interest. and they usually put the fees onto the loan."
    To put it simply..
    You get a loan of say 20K with fees of 500
    year 1 = 20500 + interest = 20125
    year 2 = 2012.5 + interest = 21537
    3 = 22076
    4 = 22628
    5 = 23193
    6 = 23773
    7 = 24368
    8 = 24977
    9 = 25601
    10 = 26241
    11 = 26897
    12 = 27570
    13 = 28259
    14 = 28965
    15 = 29960
    If you were to get 30k plus 1k fees and 5% interest after 10 years it would be 50495!!!!
    So it kind of works if you only have it for a short while. but if you happen to live for a little while longer then the interest goes up exponentially!
    Some people who have released equity from their homes in their 60's have found themselves in negative equity :-(
    Also because the bank essentially owns part of your home, you are not allowed to move house. If you try then the fees are astronomical!
    I would welcome coments on this.
    • dimbo61
    • By dimbo61 17th Apr 18, 11:45 PM
    • 9,878 Posts
    • 5,313 Thanks
    dimbo61
    • #6
    • 17th Apr 18, 11:45 PM
    • #6
    • 17th Apr 18, 11:45 PM
    If you are over 75 then your " kids " are adults and hopefully own a property of there own ?
    Now if you said you had become legal guardian of the gran kids then by all means build the dorma bungalow you need the extra bedrooms and bathroom.
    If however the kids will only visit once or twice a year then find the local travel lodge number.
    You will struggle to get a mortgage when retired so this will be a Very Expensive Equity release rip off
    • BML
    • By BML 18th Apr 18, 9:03 AM
    • 129 Posts
    • 5 Thanks
    BML
    • #7
    • 18th Apr 18, 9:03 AM
    • #7
    • 18th Apr 18, 9:03 AM
    I vaguely remember my old mortgage which when we were sent an annual review always looked as though we were paying it off very slowly but I'm sure it did not include compound interest so why doesn't government protect us from these thieves?
    Surely there must be an honest mortgage vendor somewhere or do I have to become a Muslim?
    • fewcloudy
    • By fewcloudy 18th Apr 18, 11:22 AM
    • 220 Posts
    • 115 Thanks
    fewcloudy
    • #8
    • 18th Apr 18, 11:22 AM
    • #8
    • 18th Apr 18, 11:22 AM
    Surely there must be an honest mortgage vendor somewhere or do I have to become a Muslim?
    Originally posted by BML
    Huh?

    Maybe time to put the keyboard back in the cupboard for the rest of the day... get the kettle on, have a couple of digestives, and stop worrying about this.
    And I'm sure your "young friend" has got better things to do with their time than write out examples of compound interest for you...
    Feb 2008, 20year lifetime tracker with Sprogget and Sylvester, 0.14% + base for 2 years, then 0.99% + base...
    • Nasqueron
    • By Nasqueron 18th Apr 18, 11:27 AM
    • 4,505 Posts
    • 2,658 Thanks
    Nasqueron
    • #9
    • 18th Apr 18, 11:27 AM
    • #9
    • 18th Apr 18, 11:27 AM
    Huh?

    Maybe time to put the keyboard back in the cupboard for the rest of the day... get the kettle on, have a couple of digestives, and stop worrying about this.
    And I'm sure your "young friend" has got better things to do with their time than write out examples of compound interest for you...
    Originally posted by fewcloudy
    OP is confusing Sharia compliant mortgages with interest free loans. Sharia loans still pay interest, it's just dressed up so it appears to not be.
    • BML
    • By BML 18th Apr 18, 1:35 PM
    • 129 Posts
    • 5 Thanks
    BML
    Mortgage for the over 80s?
    With the greatest respect I came to this forum looking for advice and it has not been given so I will look elsewhere which fills me with trepidation because of the poor reputation this area of business has but advice I will find and build another floor I will do.
    • kingstreet
    • By kingstreet 18th Apr 18, 1:58 PM
    • 33,351 Posts
    • 18,042 Thanks
    kingstreet
    Consult an Independent Financial Advisor, as you are likely to need advice from someone with permissions which extend into lifetime mortgages.

    For anyone else reading this, this doesn't mean an interest roll-up scheme, just mortgages for older people.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Brock_and_Roll
    • By Brock_and_Roll 18th Apr 18, 2:05 PM
    • 824 Posts
    • 802 Thanks
    Brock_and_Roll
    With the greatest of respect OP, you do not appear to have much of an understanding of how interest works, and has always worked on a repayment mortgage. You also seem to have little understanding of Sharia law, which for a given level of return for the lender would result in the same payments.


    Finally, you seem to struggle to understand why people here are loath to recommend equity release products without fully understanding the specific circumstances.


    As a previous poster has said, IF you do manage to get some form of finance, the fees/costs will run into thousands even before the interest charges on the loan so it will almost be certainly be cheaper to pay the children to stay in a hotel every time they visit!
    • BML
    • By BML 18th Apr 18, 3:16 PM
    • 129 Posts
    • 5 Thanks
    BML
    Mortgage for the over 80s?
    You stated, "You do not appear to have much of an understanding of how interest works, and has always worked on a repayment mortgage."
    I never claimed such knowledge which is why I approached this forum to seek some.
    You also stated, "You also seem to have little understanding of Sharia law, which for a given level of return for the lender would result in the same payments. I never claimed such knowledge for that either although the way you explained it seems to suggest a better form of "lending" than the West offers.
    You end your insults by stating, "Finally, you seem to struggle to understand why people here are loath to recommend equity release products without fully understanding the specific circumstances." I would suggest that the reason is that like myself, they don't understand it.
    As a previous poster has said, IF you do manage to get some form of finance, the fees/costs will run into thousands even before the interest charges on the loan so it will almost be certainly be cheaper to pay the children to stay in a hotel every time they visit!
    As the ultimate optimist I have to believe that there are some organisations in the mortgage field who are not rogues rascals and thieves.
    I took my first mortgage out nearly sixty years ago, it was a struggle to pay it but I managed. I took another mortgage out some twenty years later to remove the roof of the bungalow we had then replacing it with an additional floor which changed our two bedroom bungalow into a six bedroom chalet bungalow with three bathrooms. It was nothing grand but it allowed our growing family their own space.
    I then downsized which was a mistake because as I extend my book buying I need extra space. On top of that we now have the wonderful pleasure of grand children and great grandchildren and I would like to make their visits more extended so I will keep looking but I'm not going to put my neck into the noose of an usurer. I have no disagreement with the practice of paying interest but I despise the practice of unethical or immoral monetary loans that unfairly enrich the lender. Originally. By the way usury used to mean interest of any kind.
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