House borrowing options for over 60's

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Armstrongracer

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I'm a single parent renting in Dublin. Rent and maintenance comes to about €3500/month, take home salary is around €6000/month. I'm about 5 years off retirement and have 2 more years of maintenance and child support (I had children late in life). Obviously someone of my age can not afford to rent in Dublin once I retire. I have an inheritence of €300k thats immediately accessable and plan to purchase a house out of Dublin to live in after my children finish school. I have seen a house where I want to live but I'm about €50k short of the asking price (including fees & stamp duty). Before I live there whilst remaining in Dublin, I could easily rent it out for around €1500/month. The house is in move-in condition and there is no chain. I'm too old for a mortgage so what options do I have for borrowing €50k (over a 5 years loan period) and where should I be looking. Note also, I have no outstanding loans or debts and a good earning record.

Thanks in advance for yor input.
 
Have you tried for a mortgage? Ask a broker maybe, you have at least 5 yrs of time left for a mortgage and even more if lenders allow you go to 70 (they used to but things might be different now!) Usually the term ends on retirement but again that depends on what pension is expected and how secure. I wouldn't totally dismiss the idea of a mortgage until you have exhausted that possibility.

Other than that of course Credit Union may well do it but at higher interest. Need to weigh up the costs of setting up a mortgage on a small amount and term with the higher interest paid over the term.
 
I'd agree try a broker but the other thing to consider is that some credit unions now do mortgages, it might be worth looking into that if you are a member of one that does.
 
Armstrongracer said:
I'm a single parent renting in Dublin. Rent and maintenance comes to about €3500/month, take home salary is around €6000/month. I'm about 5 years off retirement and have 2 more years of maintenance and child support (I had children late in life). Obviously someone of my age can not afford to rent in Dublin once I retire. I have an inheritence of €300k thats immediately accessable and plan to purchase a house out of Dublin to live in after my children finish school. I have seen a house where I want to live but I'm about €50k short of the asking price (including fees & stamp duty). Before I live there whilst remaining in Dublin, I could easily rent it out for around €1500/month. The house is in move-in condition and there is no chain. I'm too old for a mortgage so what options do I have for borrowing €50k (over a 5 years loan period) and where should I be looking. Note also, I have no outstanding loans or debts and a good earning record.

Thanks in advance for yor input.
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Spry Finance are a mortgage provider for over 60's.

You borrow a % of the house value based on your age. from what you have said, it would appear you could borrow the 50k from Spry. You can repay over a time period that suits you, but I think a max of 10% of the loan per year. So you could pay back 5k a year which would include interest. (but just check that with them)
 
My understanding is - If you already own a house, Spry will lend you a % of the house value based on your age. I don’t think Spry will lend you money towards buying a house.
 
Thanks for the info, house is an absolute priority for my future, the government has zero regard for renters and landlord selling is a constant worry. I don't already own a house so Spry finance is out, I'm 64 so could squeeze 5-6 years of a mortgage in then again, I'm a self-employed contractor which may be an issue but have 20 years of account showing a good income stream. I also have €50k+ of assets (vintage vehicles) which can be liquidated to pay off a loan but it could take up to a year to realise that as its a specialist market. Want to get a house ASAP.
 
I've German/Irish cousins in their 50's that have rented all their life and will always rent. They can't understand the lack of tennant security here. I've been renting for 20 years, never missed a payment etc.. but being exemplary has given me no additional benefits.
 
Des Pondent said:
My understanding is - If you already own a house, Spry will lend you a % of the house value based on your age. I don’t think Spry will lend you money towards buying a house.
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They do, if the lending is in line with their lending limits on age. For example if you own a house valued at €350K and could release 50K of the equity as cash. Then, if you are seeking to buy a house worth €350K but only have 300K in cash, they will loan you the 50K balance by way of their mortgage. No difference.
 
Thanks, interesting. As I said, I don't own a house so would only be looking for 50k add-on which could be a mortgage or loan. In case of either, I would probably be in a position to repay early after a year or two. Technically for a mortgage I would qualify for 1st time buyer status, if there are any benefits at my age.
 
Armstrongracer said:
Before I live there whilst remaining in Dublin, I could easily rent it out for around €1500/month.
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I think a lender will probably give you a buy to let mortgage as you intend to rent it out. The rent will easily cover the mortgage repayments.

The rate will be high but as it's only on €50k , it won't be material in the overall context.

You need to talk to a broker immediately as the seller probably won't be interested in a bid from someone who is not loan-approved.

Brendan
 
It is well worth considering if there is any scope for a loan from a friend or a family member.

It should be fully backed up with legal documentation.

But I have seen cases where individuals needed money for a house purchase and a family member had the money but was afraid to offer it.

People keep their personal finances private from family members and that is understandable. But you should investigate the possibility.

You might need to hint it e.g. Uncle John, I am getting a mortgage and they might require a guarantor - would you be prepared to go guarantor for me?

Brendan
 
Marsupial said:
:D I admire your sense of humour. Did you ever contemplate trying to be an Irish landlord!
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It's a wonder nobody ever wrote a folk song about the plight of the poor Irish landlord.

@OP I found Bank of Ireland was good as a contractor. I'm a few years younger than you so not sure how the age would play out.
 
I'm guessing you are about 65 years of age, independent and well endowed with hard earned street-cred. You're relatively well off financially. You are not looking for a dreaded "Life Loan" (Afterlife Loan in my book) or a Car Loan or a loan to head to Antarctica to see the penguins and these days €50K is not a huge amount needed for house purchase (a 2nd hand run around car for a neighbour of mine was bought for €30K recently). The Credit Union is a good option. Like Brendan said above perhaps a family member can loan you the money on a a personal basis (tax implications will kick in if you go down the legal line) and I have found out to keep financial problems away from the family or you potentially could become the financial black sheep.

Just an inspired thought:- You've probably built up much financial savvy with your bank over the years and perhaps (just perhaps) your bank can now do you a favour where it appears there is not much risk involved?

Just another inspired thought:- If you were my sister I'd have no problem giving you the €50K you need. I wouldn't want it paid back either. Perhaps you have a sister/brother who'd do the same?

I hope you can get to the other side of your dilemma and I think that journey is not as distant as you think.
 
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Options

- find a house within budget
- borrow for another purpose if it makes it easier to get the 50K (eg educational loan for children, car loan etc)
 
Another thing that strikes me is that you have found a house in 'move in' condition but then want to rent it out for a short time, my fear and I have never been a landlord but read lots of horror stories here and elsewhere is will it still be in 'move in' condition when you get it back if you manage to get it back at the time you need it!
 
You'd also have to consider if your kids will go to college and if they can commute to where the new house will be.
Or will you have to budget for college accommodation.
 
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