Mortgages and the elderly

[MCDC]

Hi all,

I'm trying to find out where there are guidelines in relation to providing mortgages to elderly people, particularly in relation to where those taking out the mortgage have suffered serious ill-health in the years immediately preceding the start of the mortgage.

I've had a look at various websites but am struggling to find specific guidelines/documents (maybe there aren't any!!) but if someone could point me in the right direction, it would be much appreciated.

Thanks for reading,

MCDC

 

[mf1]

Mortgages tend to be based on the following:

1. Value of security
2. Ability to repay

In general, I think ( particularly now) Banks would be reluctant to lend to elderly people, even with terrific security, without an ability to repay.

Without more detail of the specific circumstances, its difficult to say more. One option is to transfer assets to younger people ( i.e. son/daughter) who will have the ability to repay. Or selling a valuable property ( what is saleable? what is valuable? these days) and buying a lesser valuable property without a mortgage.

Mind you this leads into the minefield of loss of ownership and security for the future.

I think that the old days of drawing down on the equity in a family home (particularly when the owners are elderly) may well be gone because of the issues surrounding taking in the security by a lender if there is an inability to repay. How could you put an old person out of their house - as an example!

Post more detail perhaps?

mf