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Mortgage past retirement age

(13 Posts)
FaceDirectionOfTravel Wed 19-Feb-14 18:31:26

My mum is 62. Several years ago she was sold a 25 year mortgage on a shared ownership house. I spoke to the FSA last year and they said that she could pursue this if she wants to as it may be against their guidelines.

I mentioned it to her and she made some noises but hasn't looked I to it as far as I know. I'm considering whether to bring it up again although she is funny about talking about money.

Any thoughts? Any experiences with this?

Preciousbane Wed 19-Feb-14 19:07:13

Message withdrawn at poster's request.

FaceDirectionOfTravel Wed 19-Feb-14 21:52:02

Thanks so much, Precious. I am all for complaining but I think she probably feels a bit embarrassed if she was 'taken in', iyswim? I wonder what the result from complaints usually is.

I think she was at least 55 when she was sold a 25 year mortgage.

Rockchick1984 Wed 19-Feb-14 22:08:25

Does she have any pensions? If so the mortgage may have taken the income from those into consideration so not missold. However, if she will be relying on state pension then it does sound like she needs to complain - what was her plan to repay the mortgage after she retired?

Mandy21 Wed 19-Feb-14 22:16:10

It depends who the lender was and what her circumstances were. Some lenders allowed applicants upto 85 (I definitely know of 2) providing some conditions were met (loan to value ratios / income in retirement / whether it was a residential property or buy to let / took independent financial advice). Is she unable to meet the payments?

FaceDirectionOfTravel Wed 19-Feb-14 22:21:35

She is still working and says she can't afford to retire. sad We don't talk about it much but I k ow things are very very tight.

Rockchick1984 Wed 19-Feb-14 22:25:36

I think you would need to know more about her finances to know if it was missold unfortunately - if she isn't prepared to do anything about it then there's not much else you could do or say to her I don't think. Was it a reputable lender?

Mandy21 Wed 19-Feb-14 22:28:10

Its difficult without discussing it properly. Could she have afforded a shorter term? When she took it out, what options did she have? Was she intending to work to 80? I'd perhaps ask her if you can go through the paperwork.

kazzawazzawoo Wed 19-Feb-14 23:27:30

Sorry I can't help, but watching with interest, as I think we are in a similar situation.

FaceDirectionOfTravel Thu 20-Feb-14 08:22:15

OK, thanks. She has no other source of income, except her job. I forwarded her the template letter just asking whether she thought it might be worth getting out the paperwork. I'll also talk to her boyfriend who is a level headed sensible guy, see what he thinks.

Beastofburden Thu 20-Feb-14 08:26:09

It's not about whether she has a pension already, it's about whether she will have one when she retires, which means that she can afford the mortgage aft she retires.

Roshbegosh Thu 20-Feb-14 08:29:51

If you have pension provision then the mortgage will be allowed IME but our lender will not allow a term that goes beyond 75 years old. I would imagine different lenders have different rules. She might have been worse off renting all this time and she might have a capital gain that she wouldn't have benefitted from as a tenant so you would need to know more to pursue a claim.

FaceDirectionOfTravel Thu 20-Feb-14 08:39:09

Interesting. I'm pretty sure any pension she would get would b v small. She has been totally shafted financially by my sperm donor. Thanks everyone.

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