Posted on 27 April 2013 by Keith
I own a property worth £230k jointly with my mother aged 67. The outstanding mortgage is £85k, taken out 2 years ago to clear unsecured debts. I am looking to remortgage and also consolidate outstanding unsecured debts of £60k (LTV of 63%) that are in my name. I earn £65k a year basic salary with a non-guaranteed annual bonus of approx £15k. Both my mother and I have flawless credit histories. Given my mother's age, I am looking to take the mortgage out over 12 years (completed by her 80th birthday). I will ultimately be the one making the monthly mortgage payment, as the purpose of the mortgage will be for my benefit. Will the age factor be an issue here? I am 32 years old and have no other mortgage. Thank you.
For some lenders, yes your mothers age will be a factor, though there are some who if we don't need to use her pension income, will ignore her age and allow a mortgage term based on your age alone.
The bigger issue for many lenders is more likely to be the level of debt consolidation and that this is the second such consolidation in a short space of time. Irrespective of your excellent credit history, many lenders view high levels of unsecured debt consolidation so close together as higher risk and shy away from such cases.
It may well be that we would have to approach a lender who manually underwrites and can therefore judge each case on its individual merits.
If you'd like to discuss your enquiry in more detail, then please let me know and I'll arrange a convenient time for one of our consultants to contact you.
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