Getting a mortgage at 75 years old

Posted on 4 May 2012 by Janice


My father wishes to purchase house valued at £250,000. He requires a small mortgage of £95,000 towards the purchase price. He is 75. Can you suggest who to try and what rates might be>Many thanks.

Janice

Your Father is already at an age where he is beyond the maximum for a normal residential mortgage and he needs to consider whether a Lifetime Equity Release mortgage will meet his requirements. 

The interest on Lifetime Equity Release mortgages is not repaid on a monthly basis but is rolled up and only repaid on death or if he were to move into permanent care.  Because of this, the amount you can borrow is limited by both your age and the value of the property and in your Father's case it might be that the maximum he can borrow would be £90,000.

No one should take out an Equity Release Mortgage without seeking independent financial and legal advice and at all times they should consult with family members to make sure they are aware of their plans and the possible reduction in their estate when they die.  Depending on what the money released is used for it is possible that your Father's entitlements to State Benefits may be effected, I don't think they will be as he is not putting the money into savings, but this should be checked.

I believe we can help your Father and that you would both benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you reach the right solution for his situation.

Peter

Answers provided in response to Ask the experts 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 necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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