Mortgage approval for 57 year old

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I'm looking for a mortgage to buy my daughters house. She has reached the end of the road with her bank and they are seeking a voluntary sale. There is a house in slightly better condition that has sold recently for €130,000 close to hers so I'd imagine they will be looking for something. Her house needs some renovation, €20000 should cover it.

I will be paying the mortgage until my daughter is in a position to meet the repayments.

I'd be glad of some suggestions of how to approach the mortgage application. I have €50000 in savings and would need a mortgage to cover the rest.

Should I hold back some cash to pay for repairs or would I have more chance of getting approval if I put all the cash down and seek to borrow for repairs?
Is there any lenders that would be more suitable for my position?

I shall post my financial details in another thread.

Thanks
 
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Is this a single or joint application. Single
Type of Property. 2/3 bedroom house/apartment. 2 bedroom house
Value of Property. €130000
Amount of Mortgage €80000
Term of Mortgage. 10-15 years
Nett income per year: €45000
Amount of savings and over how many years €100,000 over 7 years

Is there a lump sum from any other source? No
Age of Applicants. 57
Employment situation. Private sector
How long are you in current position and are you permanent. 26 years and permanent
Have you any children 1
Have you any court orders or Judgements. No
Have you any other loans and if so full details of amount/period/% rate and repayment amounts. No
Cr. Card situation. Full disclosure. Cleared monthly
Have any of your existing loan or credit card monthly repayments been paid late over the past twelve months, even if you made the repayment in full a few days later? No
Any previous negative Cr. history by either applicant. No
Are your savings and rent clearly visible and identified as such in your bank accounts each month. Yes, separate account

Have you gone over your overdraft limit in the past six months, even if only for a day or two? No
If you have been refused a mortgage please give exact reason of why and address why you think you should not have been. N/A
Did you use a Mortgage broker or are you applying directly?. Haven't started applying yet.

Any other relevant information. Home owner, current value about €250,000, no mortgage- finished payments 2 years ago.

What reason has the bank given to you for refusing you? N/A
Have you checked your ICB record to make sure it's clean?* No, it should be
Which bank(s) have you applied to? N/A

Before applying for a mortgage remember you will have a lot of other expenses associated with moving into a house such as furnishing it/repairs/mortgage protection policy/house insurance/property tax/new telecommunications charge/new water charge/possibility a management co charge as well as the usual utilities fees. Also stamp duty, legal fees for a solicitor, bank valuer's fee, engineer's report. Covered
 
If you have €50,000, you may well be able to do a deal with the lender for your daughter to keep her home. In many cases, this will be better than you buying the home from her.

You should post your daughter's details in this format:

Information required for mortgage arrears and negative equity questions

If your daughter has a tracker mortgage and if the negative equity is not too big, then she should probably try to keep her home in her own name and keep the cheap tracker.

If your daughter has limited income and huge negative equity, then she should be looking at doing a deal for the voluntary sale of her home which involves doing a deal on any shortfall arising.

And, of course, there is the larger question of whether you should be putting your long time financial security on the line for your daughter.

Brendan
 
Hi Brendan,

Thank you for your reply. I can't post her details, sorry. The question is related to me. She will be seeking bankruptcy to clear the remaining debt and other secured/unsecured debt up to €500k. Her income is minimal, below the reasonable levels, but I believe that will improve in the next few years. The house is about 180k in negative equity taking into account recent price increases.

What deal do you think would be possible that would mean I don't have to buy house?
 
What deal do you think would be possible that would mean I don't have to buy house?

Without knowing her details, it's not possible to answer that. However, if she has huge debts and no income, then it's probably not possible.

It's possible that a Personal Insolvency Arrangement might work for her, but again, without knowing the details, it's all just speculation.
 
There are 2 issues here. Firstly I can see no real possibliity of you getting an 80K mortgage given that the term limit will be at normal retirement (age 65). Also this will not be your PPR so it will be regarded as a RIP loan.
Secondly as you have 50K available, there is scope to approach the mortgage lender to do a deal which would keep your daughter in her house and they can exclude this debt from the bankruptcy proceedings. This is likely to be the best option open to you. i.e. Offer to take over the loan repayments on behalf of your daughter in return for her continuing to stay in the property. If there is considerable negative equity in the property (no information posted on this) it may well be preferable for her to relinquish the property completely and for a time you can assist her to rent a property.
 
Thank you for your reply. I can't post her details, sorry. The question is related to me.

The house is about 180k in negative equity taking into account recent price increases.

This proposal does not sound at all like a good idea for you. Are you being pressurised into it.

Would it not be better for her to go fully bankrupt, ideal time now as she is on below minimum level and clear all debts and start again. You could help her with the deposit maybe.

What is the logic in her keeping the house?

It's unfortunate you do not post her details as without the full picture you will not get proper advice.
 
This proposal does not sound at all like a good idea for you. Are you being pressurised into it.

Would it not be better for her to go fully bankrupt, ideal time now as she is on below minimum level and clear all debts and start again. You could help her with the deposit maybe.

What is the logic in her keeping the house?

It's unfortunate you do not post her details as without the full picture you will not get proper advice.

Of course I'm under pressure but that is not the point. I wish to help my child. I appreciate the advice but did not come here to discuss her details. She will be going bankrupt and the house will be sold for a fraction of the mortgage owed. If I am in a position to buy the house at its current value and leave her in her home then well and good, thats logical to me.

As requested in my original post I wish to find the best way for a 57 year old to get a mortgage for a house valued €130000 with a deposit of €50000.
 
I think the answer you are getting here is that it isn't going to be possible for you.
 
hiya, unfortunately your situation is all too common, but you should be admired for helping your daughter in this way.
Due to changes in regulation with regards to the repayment of mortgages after retirement age, you may be able to qualify for a mortgage. Your best bet is to sit down with a financial adviser and discuss your options.
You can give me a shout if you want to discuss further.
but best of luck with it, and hope you get it sorted.
 
Would it not be better to help them rent somewhere till they get back on their feet. Getting into another mortgage would seem to be repeating history unless something else has changed with their income. It would be less stressful for everyone. It would seem to be a bad time to be getting another mortgage for all parties.
 
When they go through the emergency drill on a plane, they always tell you to secure the mask on yourself first before putting your childs one on. Why? Because you have to be safe before you can help others.

It looks like a similar situation here. I understand your desire to help your daughter but you are taking on a massive commitment here and it could effect the rest of your life. You may have to work to age 70 and miss the most active retirement years. All of your savings will be gone and you will have taken on a lot of debt that will have to be paid off in a short period.

Will your daughter be able to repay you? Is moving back home an option?

PTSB will provide mortgages to age 70 and running the figures, you may qualify for a mortgage with them.


Steven
www.bluewaterfp.ie
 
Of course I'm under pressure but that is not the point.


It is precisely the point.

I understand you want to do the best for your child, and that you are under pressure. But you came on here to AAM for advice and asking for a bit of your problem to be solved without looking at the full financial situation is a waste of time, most especially for you.

We have had too many parents on here over the years in trouble precisely because they were put under pressure, or put themselves under pressure to put a roof over their children's heads.

Paradoxically there are many children who wished their parents had never helped them onto that ladder.
 
Here is my answer to your question.

You have an income of €45,000 that would support mortgage repayments of roughly €12,000 a year.

At 57 the issue is that most banks will be slow to give you a mortgage for a term that takes you over 65.

Repayment capacity of €12,000 would get you a mortgage of about €95,000 over 10 years at an APR of 4%.

As this is a non standard situation you are unlikely to find a bank that has a product specifically suited to your situation. You will have to knock on doors to see if you can get a bank to consider the application. I doubt any broker would put in the effort likely to be required.

I would avoid any mention of your daughter in any approach to the bank, you are buying the house for your own purposes. Do not suggest that she will take over payments at some future time.

What income will you have post retirement, if you have a good pension arrangement you may be able to get a longer term.

€100,000 plus your savings gives you a good position to buy the property.


That is my answer to your question. However when you come on AAM you also get opinions. Mine is let your daughter go under, you say she has €500k other debt apart from this house, so you cannot save her. If you let her problems pull you down as well you will be of no use to her in the future.

Keep your money and help her afterwards if that is what you want to do. You can give her grocery money now but anything above that is foolish.

Remember your objective is to support your daughter not the bank.

Good luck
 
We have had too many parents on here over the years in trouble precisely because they were put under pressure, or put themselves under pressure to put a roof over their children's heads.

Paradoxically there are many children who wished their parents had never helped them onto that ladder.

Amen to that. I have worked with a lot of people who have had to put off retirement because they haven't been able to fund for it because they are paying off debts that incurred in helping their kids out.

Worse still are the people who have retired and are carrying the debt with them into retirement.

By all means help out your kids but you need to assess how much you can give them. No child would want their parents lifestyle to put at risk for their benefit.


Steven
www.bluewaterfp.ie
 
Many thanks for all the opinions and advice. It may be a non runner in any case as there are many other moving parts.

I shall update if anything comes of it.

Thanks
 
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