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Mortgage Options for the over 70's

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  • 27-01-2010 12:13am
    #1
    BnB
    Registered Users Posts: 1,080 ✭✭✭


    My Father-in-law who is about 75 is looking for a loan of about €110,000 .
    He is a home owner with no mortgage. He did take out a loan of €12k last year to re-roof the house which he is paying away grand. I don't know exact figures but between himself and my Mother in Law who worked in Public Service jobs for a long time, they have 2 fairly decent pensions.

    Basically, he is getting the loan for me & my wife to finish our house as the bank won't give us a loan at the moment. (see here: http://www.boards.ie/vbulletin/showthread.php?t=2055795810)
    Myself & my wife will be repaying the loan. We can afford to pay off 1k a month comfortabally (as we are paying another term loan as well). We would hope that in 12 months when my bad history has cleared a bit, we will be able to get our own mortgage and pay off the term loan and this proposed loan as well.

    He has basically said to me to tell him exactly what to go to the bank and ask for and he will do it. Believe me, I do know how lucky I am to have family like him.

    I wouldn't really know what type of products that would be suitable. I would like him to get a standard mortgage for 110k over 15 years that we could be paying off, but I'm not sure he would get that because of his age. What are the best products that are available to him here.

    Thanks in Advance

    BnA (now called BnB..!!!)


Comments

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    #2
    jimoc
    Registered Users Posts: 634 ✭✭✭jimoc


    It is extremely unlikely that someone of that age would be able to get any sort of loan with a term of longer then 5 years.
    A bank will look at the situation and all they will see is a 75 year old looking to get a loan that would take 30 years to pay back, meaning he would have to live until 105 to pay it back.

    However what may be a possibility would be an equity release product, whereby the bank gives them a lump sum in exchange for an equity in the house, and when they die (hopefully in 30 years :) ) the bank gets the house.
    However they usually come with a provisio whereby the benefactors of their will have the option to pay back the money loaned with interest.

    If you have a nice bank employee they might be able to explain the options better then I can.


  • Options
    #3
    BnB
    Registered Users Posts: 1,080 ✭✭✭BnB


    jimoc wrote: »
    However what may be a possibility would be an equity release product, whereby the bank gives them a lump sum in exchange for an equity in the house, and when they die (hopefully in 30 years :) ) the bank gets the house.
    However they usually come with a provisio whereby the benefactors of their will have the option to pay back the money loaned with interest.


    Thanks Jim

    I did think we were probaby looking at some kind of an equity release option. But I know very little about these products and would appreciate more info on them. Two specific queries on Equity Release products like this.....

    1) Could we be able to pay off something on it after drawing it down. Even if it was just the interest.

    2) As we only really need the money for a year at the most, would we be able to pay the whole thing off in a years time ?


  • Options
    #4
    Andymfinancial
    Closed Accounts Posts: 60 ✭✭Andymfinancial


    hi seniors money do an equity release scheme. Had some dealings with them, they seem ok, if you need contact details for them let me know


  • Options
    #5
    tHE vAGGABOND
    Registered Users Posts: 6,686 ✭✭✭tHE vAGGABOND


    equity release scheme
    careful about these, there was a big push back against them in the UK a couple of years ago, as the bank ended up huge percentages of peoples houses, for quite small loans..

    it may be different here and now - but be careful..


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