There are several options available when it comes to purchasing the bungalow.
Another option is a standard lifetime mortgage, giving you a maximum loan of £86,800. The benefit of this is that there are no monthly payments so you can enjoy your income, with interest fixed at the outset for the full term of the mortgage. Lenders typically consider 3 to 5 per cent notional income from such investments with borrowing in the region of 4 to 4.5 times combined income. For the purposes of the mortgage application, we can use your gross pension before taxes, which I estimate to be in the region of £26,875.
Better still: ban no-fault evictions and let this lady stay in the bungalow for as long as she wants to, without worrying herself about mortgages etc.