Supporting a Mother in Helping Her Daughter to Buy a Home
At Dudley, we do not have an upper age limit and offer mortgage solutions to borrowers who are already in retirement, or require mortgage terms that extend into retirement. Our human approach to underwriting, allows to assess every case thoroughly and take each borrowers cirumstances in to account.
In this complex case, we applied the same approach and found a flexible solution for a first time buyer and borrower extending a mortgage term into retirement.
Continue reading to find out the full story.
Our client's case
Recently, we helped a 28-year-old police officer and her 60-year-old mother secure a £320,000 mortgage on a £400,000 property.
Due to the property market's high prices, this posed a difficult affordability challenge for the daughter to be a sole buyer. Instead, the mother provided invaluable support by participating as a Joint Borrower Sole Proprietor. With this arrangement, the mother was able to contribute her rental income towards the mortgage application, while keeping the property in the daughter's name.
The pair aimed for a 32-year mortgage term to ensure monthly repayments remained manageable.
This case presented many unique complexities, including the JBSP arrangement and the need to balance affordability while keeping the property deeds in the daughter’s name.
What we did
After reviewing the case, we used our human underwriting approach to assess the mother’s documented rental income alongside the daughter’s salary to determine affordability.
Although the mortgage term extended into the mother’s retirement, we considered the family’s overall financial stability and future plans.
With this in mind, we were pleased to approve the mortgage on a 5-year fixed rate at 80% LTV, providing a personalised solution to their needs.
Sarah Rose, Key Account Manager at Dudley Building Society added: “
"With our flexible approach and human underwriting, we were able to help a 28-year-old police officer and her mother secure a £320,000 mortgage on a £400,000 property. By including the mother’s rental income, we ensured affordability, even with the term extending into her retirement.
We were very happy to approve the application at 80% LTV with a 5-year fixed rate, helping the daughter achieve her goal of homeownership."
Place your later life mortgage case with us
Whether your client is approaching retirement or already retired, our later life lending options, including residential, buy to let and expat are designed with unique circumstances in mind, whether simple or complex.
Contact our Intermediary Team on 01384 489195 or email at [email protected] to discuss your clients case with us.