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Paying the mortgage at 60??
Hi,
Sorry about long post!
Was hoping to get an answer to a question i have regarding my mum. She's 52 and has ?22,000 left on her mortgage as she was diagnosed with MS 10 years ago and had to go on benefits. She could not work, consequently she has been paying an interest only mortgage since then. The mortgage ends when she turns 60 and so she will then owe the bank the money. The house is now worth from about ?115000, not too sure how much exactly. she is on Invalidity and Higher level DLA. Her income is around ?900/month, she has outgoings of around ?250
She went to a mortgage advisor who has found a fast track mortgage (after getting turned down by one bank as they were not too sure about her invalidity!? What that means i dont know!), anyways the 2nd mortgage he has found he wants her to sign the papers tomorrow, the mortgage term is 15 years!!!!
So, my question is how is she going to afford to pay a mortgage when she reaches 60 and gets a state pension(if there is such a thing). Does anyone know if she will continue to get the same amount of benefits when you're over 60? She has no savings or other pension, she only left university a year before she had to go on DLA (mature student)
Many Thanks in advance
Shell
She can get a forecast of her likely pension here: www.thepensionservice.giv.uk As of 2010, you will only need 30 years of NI contributions to get the basic state pension (her conts come free with the benefits and also she will proably get Home Responsibilities Protection).If she worked before she may be entitled to additional Serps/S2P on top. The minimum she would get if she has no other income is pension credit, currently around 120 pounds a week, plus attendance allowance ( which is what they call DLA after 60) which has two levels.Her council tax would also be paid. Sounds though she will be on much the same amount.
Thanks Ed, thats great. I'll have a look at that site now and give her the details, its been worrying me, i dont want to see her losing the house when her benefits change.
I found an interesting thing on that site, basically saying that those born after 6th April 1955 will not reach state pension age until they are 65? My mum was born 15th April 1955, does this mean she will receive the same benefits for 13 years rather than the 8 i thought? Sorry to be dull, i think its right, just need some reassurance?
She can get a forecast of her likely pension here: www.thepensionservice.giv.uk As of 2010, you will only need 30 years of NI contributions to get the basic state pension (her conts come free with the benefits and also she will proably get Home Responsibilities Protection).If she worked before she may be entitled to additional Serps/S2P on top. The minimum she would get if she has no other income is pension credit, currently around 120 pounds a week, plus attendance allowance ( which is what they call DLA after 60) which has two levels.Her council tax would also be paid. Sounds though she will be on much the same amount.
Thanks Ed, thats great. I'll have a look at that site now and give her the details, its been worrying me, i dont want to see her losing the house when her benefits change.
I found an interesting thing on that site, basically saying that those born after 6th April 1955 will not reach state pension age until they are 65? My mum was born 15th April 1955, does this mean she will receive the same benefits for 13 years rather than the 8 i thought? Sorry to be dull, i think its right, just need some reassurance?