The question is regarding my mother who would like to release approximately £70,000 from the value of her home, which is valued at £600,000 and is mortgage free. She only has an income of approximately £15,000pa. Do you offer any products that would assist her? Regards Lawrence
Thank you for your question submitted on our website.
It is possible to remortgage her home and release £70,000, but before I can assist you further I would need to know how old your mother is? This is important as most lenders have strict guidelines on maximum age at the end of the mortgage term- most range between 75 and 80 years in age. There are lenders that would consider higher, and this will only be an option if the lender is happy that your mother could sustain the future repayments of the mortgage.
Lenders would want to know the reason for the remortgage? How your mother’s £15,000 income is derived? Details of investments would also advantageous, as well as full details of income and expenditure.
If your mother is age 55 and over, the other option she may like to consider is Equity release. However I would need to know further details before suggesting whether this might be the best option for you.I consider that the best course of action would be to contact one of brokers to discuss the options more fully.
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.
We recommend you seek professional advice with regard to any of these topics where appropriate.
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