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Mortgage at 72 - is this possible?

(44 Posts)
lejaye Mon 29-May-23 13:01:39

I've been trying to find out. I've googled but mostly it's about remortgaging, equity release and so on.

My situation is that I very gratefully moved into social housing a few years ago from a horrendous privately rented situation. This house is fine and I really am so grateful to have it. However the neighbours and the area are not so fine. One neighbour is perfectly pleasant to talk to but her house is frequently full of her noisy druggie friends, she freely tells me all about it as she says, I'm not judgmental. She also has a lot of pets and her garden is full of dog dirt. She has mental health problems so I do my best to be a good neighbour. On the other side they are also friendly but the garden and communal parking area is full of old cars, bits of cars etc. I usually park on the road as there's no space. They never work on the cars though, they're just dumped. I try to be a good neighbour too, caring for pets when they're away etc.

However I have now come into around £70k from a legacy and would like to move nearer to my daughter to help with the family while she works. I'm very fit and well. I've looked into exchanges but I don't think this would work out any better and there's nothing much in the private rental sector - also I have a dog. So I wondered if, getting a mortgage for say £50k would be possible, I could then get a small terrace nearer my daughter. While good neighbours can't be guaranteed, I would at least have the freedom to grow a tall hedge/fence for privacy which I can't now for example. A do-er upper would be great, my builder son in law could do structural stuff and my daughter and I decorating. I'm also hugely tempted by tiny houses but finding land to site one on is problematic.

As well as state pension I have small work pension and 2 part time jobs which I would be able to continue if I move. After tax, maybe £20k pa. Not first time mortgage, I last had one over 25 years ago with my ex husand.

Can anyone advise please? Thank you.

FannyCornforth Mon 29-May-23 13:05:12

My grandmother moved home when she was in her 80s, in order to live next door to her daughter, and she was able to get a very small mortgage

Good luck with your move, I hope that it’s possible

Smileless2012 Mon 29-May-23 13:06:42

It might be better to make an appointment with one or two mortgage providers and speak to someone face to face lejaye to see if a mortgage would be a possibility.

NanaDana Mon 29-May-23 13:11:10

You might find this useful.,can%20repay%20the%20loan%2C%20one%20way%20or%20another.

Norah Mon 29-May-23 13:18:21


It might be better to make an appointment with one or two mortgage providers and speak to someone face to face lejaye to see if a mortgage would be a possibility.

This ^^ seems the best approach.

rosie1959 Mon 29-May-23 13:49:52

Speak to a Mortgage Broker with access to all of the market they will be able to advise you what is available.
Little point you speaking to the mortgage providers yourself as they will be only able to advise on their products. There is a vast amount of products and lenders out there you need a professional to find you which if any are suitable.

Aldom Mon 29-May-23 13:56:24

Some good advice here.
I've nothing to add, just wanted to wish you all the best. I hope a move nearer to your family will be possible.

JaneJudge Mon 29-May-23 13:57:32

Yes you can get a mortgage in your 70s as long as you have the income to cover the repayment costs and can prove so. I agree with the above, to go with a mortgage broker but also it is quite widely known that the Halifax are good at lending to older borrowers, so maybe contact them?

Thank you for being such a kind neighbour by the way. I imagine all that going on can be quite testing at times.

Daisymae Mon 29-May-23 14:07:01

What about a mobile or park home? You will need to look into site fees etc. But may be able to buy one for cash, obviously much depends on the area. Just an idea.

crazyH Mon 29-May-23 14:07:36

Wish you all the best leejay

Retread Mon 29-May-23 14:14:35

A friend of mine in a similar situation moved closer to her children - they got the mortgage in their names (so technically of course the house belongs in part to them - she also had money to contribute) and she reimburses them the mortgage instalments. Is this perhaps an option?

Nannarose Mon 29-May-23 14:20:14

We've had quite a few conversations about 'park homes' . Whilst there are disadvantages, and you need to look very carefully at site fees, they do suit some folk very well. Being on one level is an advantage for the future.

It sounds as if you would have help for things like moving, but do remember to budget for legal fees, searches & surveys.

It may be worth signing up to sites like Plot Search & Plot Finder if you haven't already. Finding land is indeed a huge problem, but odd small plots do pop up - the very small ones are often not of interest to developers or the usual self-builders (2 have come up recently near me). I would definitely mention it to estate agents.

I hope it works out for you

Wyllow3 Mon 29-May-23 14:21:45

Yes you can get a mortgage until age 80 as long as you can prove you have the resources. Mine is until 75 but at one point I made enquiries about extending it to 80 for very modest extension, and it was given the OK as my guaranteed pension income more than met the guidelines. Mine is with Lloyds tho I am a long term customer.

biglouis Mon 29-May-23 14:27:01

Speak to a broker.

M0nica Mon 29-May-23 14:30:25

lejaye what you probabaly need is a Retirement Interest Only mortgage, usually referred to as a RIO mortgage..

We took one out 2 years ago when the cost of building an extension to our house exceded our available resources.

We pay interest only on the mortgage and the capital will be repaid when we die/go into care or downsize. If you google 'RIO mortgages' you will get a long lists of well known lenders that supply them.

I think given your particuclarly problem - you want to buy a house, but do not currently own one, I suggest that you perhaps start with financial institutions you already have a relationship with. or with whom your daughter has a relationship, so she can introduce you to the potental lender. Also talk to any lender who might be local to where you want to live. If your daughter lives in Skipton, it might help to speak to the Skipton Building Society, theywill know the local market vee

Before you talk to anyone, prepare a dossier of information to show any lender that will show that you have thought this plan to buy a house through. Include examples of the type of property you want to buy. Work out your moving costs. No need to worry about stamp duty, the house you fancy would clearly be below the stamp duty level, but there will be legal fees, no estate agent fees, but moving costs. Think this through and check how much that leaves you for the house. Draw up a budget and include them.

Loan size will probably be limited to half the value of the property. As your mortgage repayments will be very low, see if any member of your family would be prepared to act as a guarantor, if you do not meet payments. As your income is secure - being mainly pension income, the chances of default are minimal, but it might be the kind of thing that makes a potential lender feel happy. ldndiing to you..

Norah Mon 29-May-23 14:41:36

Perhaps someone in your family may lend? We lend in our family.

tickingbird Mon 29-May-23 15:07:55

Yes you can get a mortgage but depends on the lender. Some like the term to end at 80 but some will provide a loan for longer. I have a friend who has taken out a small mortgage - about 38k I think - but it’s only over 10 years. She was 68 when she took it out.

lejaye Mon 29-May-23 15:18:51

Gosh thank you all for all these comments and the advice, lots to go at here. It looks as though it might be possible - though with the price of houses at the moment finding one might be tricky. A friend had a park home but there were so many restrictions (no hedges for example) and little privacy that together with all the financial problems she was glad to get away and wouldn't recommend. I may continue to look into 'tiny homes' as they are really good and will speak to some advisers as you all suggest. I didn't want to start there in case they laughed me out of the place - you need some information to ask sensible questions. As I currently pay £500 rent I'm assuming they will see that I can at least pay that. Will continue the research, thank you again all for your help and encouragement.

M0nica Mon 29-May-23 15:20:11

We took our RIO mortgage out at 78 and it runs until we move or die. Given my families longeevity, that could run to getting on for 100.

I htink the limits you mention tickingbird apply to someone taking out a normal repayment mortgage.

I would suggest lejaye looks for a mortgage aimed at retirees.

tickingbird Mon 29-May-23 18:57:51


Yes you’re right. My friend did look into a RIO mortgage too and was accepted in principal but then decided to go for a repayment as she wanted something to leave her children. I hadn’t heard of them until she told me and I think they’re a great idea.

M0nica Mon 29-May-23 22:09:55

We are fortunate that the amount we borrowed was less than 10% of the value of the house, so there will be more than enough capital in the house for our family.or care, when we go.

What we did not want was the build up of interest than can eat into your capital if you roll the interest up as you can with equity release. Fortunately we both have occupational pensions, so the interesr payment is well within our means, even if the amount we pay doubles at the end of next year after the three year fixed rate expires.

PamelaJ1 Tue 30-May-23 09:12:48

Could your daughter get a buy to let mortgage? You give her the £70k she buys the property and you live in it, pay her rent to cover the mortgage and undertake to pay for repairs etc.
I do know someone who has done this.

PamelaJ1 Tue 30-May-23 09:14:22

SorryRetread just read your post. I’m sorry if it looks like I copied you.

Norah Tue 30-May-23 11:23:46


Could your daughter get a buy to let mortgage? You give her the £70k she buys the property and you live in it, pay her rent to cover the mortgage and undertake to pay for repairs etc.
I do know someone who has done this.

A buy to let mortgage could work quite well for your daughter, with your legacy as deposit. Family financing is very effective.

Juicylucy Tue 30-May-23 12:32:08

Had friend in similar situation who was advised to get bank loan as opposed to mortgage. Good luck with the move.