Will my parents who are retired be able to afford their remortgage?

Posted on 26 March 2008

My parents have a flat which has £90,000 left to pay. It is worth around £300,000 however it has a short lease of around 50 years. For the last few years, the interest has been paid by the council as my parents are retired and my father is now 70 with little savings. Now that the flat is up for remortgage it will be impossible to find a mortgage at his age, or indeed be able to pay it on a pension or savings alone. Is there anything we can do without having to sell the flat and move them out as they have been there for many years? 

Don't forget there is nothing to stop him from staying with the existing lender.  Approach them for their best rate on offer.  50 Years is low, but not bad, lenders are normally bothered about how many years are remaining at the end of the mortgage term, so if you are only asking for a 20 year mortgage, you have 30 years outstanding lease at the end.

If your parents are deemed unsuitable for a mortgage, either as a result of age, or credit issues, you may be able to guarantee them, ask Cheltenham and Gloucester, Lloyds and Abbey, and indeed, ask the current lender.

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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