Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to Howard,bruncher,SalvorHardin,tea42,yyuryyub, for Donating to support the site

Interest only mortgage over 70's

mortgage deals, ideas and discussion
AsleepInYorkshire
Lemon Quarter
Posts: 4337
Joined: February 7th, 2017, 9:36 pm
Has thanked: 6015 times
Been thanked: 2800 times

Interest only mortgage over 70's

#458016

Postby AsleepInYorkshire » November 14th, 2021, 6:37 pm

My parents-in-law are aged 73 & 83.

They own their own home and currently have a repayment mortgage with Halifax.

Their LTV is 30%.

My father-in-law has been in hospital or respite care for 11 months now. He has Parkinson's and can no longer walk having lost the use of his lower legs. He's unable to come home as he can't get carers and there are some adaptations needed in the home to allow him to live there.

We're aware that we can apply for a disability grant up to £30K to carry out enhancements in the home to help him.

We're reviewing options to change their mortgage to interest only. Does anyone have any advice on companies or websites that offer interest only mortgages in the sort of circumstances please?

Thank you

AiY

Alaric
Lemon Half
Posts: 5345
Joined: November 5th, 2016, 9:05 am
Has thanked: 16 times
Been thanked: 1132 times

Re: Interest only mortgage over 70's

#458019

Postby Alaric » November 14th, 2021, 7:12 pm

AsleepInYorkshire wrote:M
We're reviewing options to change their mortgage to interest only. Does anyone have any advice on companies or websites that offer interest only mortgages in the sort of circumstances please?


Is "equity release" an option? That's essentially interest only where the debt rolls up against the house value.

bluedonkey
Lemon Quarter
Posts: 1127
Joined: November 13th, 2016, 3:41 pm
Has thanked: 677 times
Been thanked: 402 times

Re: Interest only mortgage over 70's

#458029

Postby bluedonkey » November 14th, 2021, 8:31 pm

I can't offer much help other than to say that as someone approaching that age, I was warned that renewing my mortgage when >70 would probably be difficult.

MDW1954
Lemon Quarter
Posts: 2018
Joined: November 4th, 2016, 8:46 pm
Has thanked: 376 times
Been thanked: 793 times

Re: Interest only mortgage over 70's

#473139

Postby MDW1954 » January 14th, 2022, 6:01 pm

AsleepInYorkshire wrote:My parents-in-law are aged 73 & 83.

They own their own home and currently have a repayment mortgage with Halifax.

AiY


What is it that is funding the repayments? TBH, I'm not an expert in this area at all, but anecdotally I have gathered that options are few at that sort of age. My instinct would be to ask a mortgage broker.

MDW1954

dredd0
Posts: 34
Joined: November 6th, 2016, 8:49 pm
Has thanked: 11 times
Been thanked: 4 times

Re: Interest only mortgage over 70's

#481162

Postby dredd0 » February 17th, 2022, 12:33 pm

Nationwide BS have Interest Only, Repayment and Lifetime (Equity Release without repayments) mortgage options. Current rates a little higher than standard but still largely less than 4%, with fixes avaiable too.

AsleepInYorkshire
Lemon Quarter
Posts: 4337
Joined: February 7th, 2017, 9:36 pm
Has thanked: 6015 times
Been thanked: 2800 times

Re: Interest only mortgage over 70's

#519958

Postby AsleepInYorkshire » August 5th, 2022, 1:18 am

I'd like, if I may please, to follow up on my opening post. Perhaps, what I have to say will be of some help for others. I hasten to add my sincere and genuine thanks for all the replies to my opening post.

We've secured a Lifetime Mortgage offer for my parents in law.

They were on a fixed rate repayment mortgage which is due to end at the end of this month.

Their LTV was actually 25%, and not as I mentioned in my opening post, 30%.

The new deal takes their LTV to 44%. The equity they release will go towards the works needed to support the father-in-laws health issues as we convert the ground floor accommodation.

The interest only payments on the revised mortgage are, for the sake of argument, the same as the monthly payments they were making. Trying to put that in perspective they have increased the size of their mortgage by 74%. They also have a fixed rate for their mortgage of 4.74%.

The terms are reasonable. They can choose how much they repay on the mortgage from nothing to 10% of the balance per year. If they choose to pay nothing the mortgage company cannot reclaim the balance of interest rolled up plus the capital if it exceeds the value of their home. They literally have nothing to pay.

So effectively they have full equity release and the only people who pay for it are their beneficiaries.

Overall with the equity release and [say] ten years of savings on mortgage repayments they will release £67K of equity and it will not cost them a penny. In addition we have secured a grant for my father-in-laws support which will be a minimum of £5K.

I'm a cynical git at heart when it comes to banks and mortgage companies. However, I have to say that the product we acquired for them is very good. There are no gotcha's. It's an extremely flexible product and makes allowances for the death of the each partner. It's well worth a look, especially as interest rates are set to rise.

I hope this post helps someone. I don't often talk about these kind of products but I do think in many circumstances it will be of great help.

All the best

AiY(D)


Return to “Mortgages”

Who is online

Users browsing this forum: No registered users and 1 guest