Mortgage for Person over 60

M

mickeyg

Registered User
Messages
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My brother sold his PPR 9 or so years ago. after oaying his mortgage he had a fairly substantial sum left with which he bought a site. Unfortunately for him the rest he invested in dodgy investments which crashed. He has been renting since and paying €1000 per month. Both he and his wife are now working albeit contract positions. he has a rental property also which is "washing it's face".
My question would he get a mortgage anywhere given that he is 62, his wife is 57 and neither have permanent positions. Seems a real waste of €1000 per month to be paying in rent which could be used towards acquiring a mortgage with which to build a house on his site.
 
Whilst it might be a waste, most bank would only give you a mortgage up until the age of 65. So whether he can or can't would seem irrelevant as his repayments would be significantly more than his rent.
 
"most banks would only give you a mortgage up until the age of 65"
Do you mean that he might get a mortgage but its repayable when he reaches 65 or that he would get a standard mortgage up until he is 65 years
of age????
 
mickeyg said:
Seems a real waste of €1000 per month to be paying in rent which could be used towards acquiring a mortgage with which to build a house on his site.
Click to expand...

Rent is not a waste. He is presumably getting a home to live in.

He won't get a mortgage. Is there equity in the rental property? Is it enough to allow him to build?

It's a sad story but what was he doing investing in dodgy investments with savings he needed to build a home for himself?

Are you, or any other relative, in a position to remortgage their home and lend the money on to him? Not very tax efficient, but it might achieve the objective.

Brendan
 
Without knowing the full financial picture, it might be an option to sell the site and that + whatever leftover equity might give him enough to buy somewhere. Alternatively he could try and buy a house needing doing up and potentially look to get some sort of home improvement loan for a fixed term as opposed to a mortgage
 
Brendan, you say "he wont get a mortgage" very definitively! Is that because of age, stupidity (!) or what??
 
Brendan, I beg to differ that the question has already been answered. My brother is 62, his wife 57 and from the information in the thread it appears that he could get a mortgage
up until he is 65. You then state very definitely that he won't get a mortgage and I asked why.
 
Because banks are likely to look at him and think with 3 years tops for him to repay 100k at at about 3k a month, and no permanent jobs, why would they?
 
It's not that there is anything barring him from getting a mortgage, it's more that he would qualify for nothing near a mortgage amount with only a few years repayments to retirement.
 
It's not his age that is stopping him getting a mortgage, it is the fact that neither of them are in permanent roles.

PTSB will allow mortgages up to age 70.

A mortgage of €200,000 for 8 years would cost him €2,447 a month. He would have to show an ability to repay at stress tested levels (+2%), which would be €2,634. As he's not a first time buyer, he would need a 20% deposit too.


...why doesn't he move into his rental property?


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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