Equity Release Mortgage-HELP!

Jacaranda48

Hello-I'm new to all this. My mother has an equity release mortgage on her property. She only borrowed about £15,000 originally for various home improvements in 1992-4. This has now mounted up to nearly £50, 000.:eek: I am her daughter who is looking after my mother's best interests now that she is in a nursing home. The property is rented and has been for many years and all monies are used to help pay her fees. I have come into a little money and would like advice on whether: a)Would I be allowed to pay off this mortgage and put myself down as a percentage owner of the property? b) Would I be allowed to turn the Equity mortgage into a normal mortgage using my own property as collateral - I no longer have a mortgage on my own property and am self employed? I have power of attorney to cover any legal paperwork as my mother is unable to do anything of this nature herself. Thanks-help is needed urgently before this amount rockets any more:eek: -the building society have been unhelpful since I asked for their advice in 2006!:mad:

EdInvestor

Normally equity release mortgages become repayable when the borrower dies or goes into care and the house is sold.

Check the t&cs on the original contract.

happybroker

you can often repay these mortgages early but be careful when looking at how they calculate the settlement figure as some are based on increase in the value of the house since the loan was taken and I've seen some pretty scary numbers.

there may also be other implications with IHT etc. You really need to speak to a quality IFA for guidance on this.

UK007BullDog

You need to speak to an IFA or Mortgage broker who is specialised in Equity release.

Your mother opted for a mortgage where the interest is rolled up every month and added to the mortgage, hence it will grow faster and faster.

You can pay it off either through your savings or depending on your age and situation with a mortgage on your own property using the money to pay that one off.

Even with power of attorney some lenders will not touch your moms house to give you a mortgage to pay of the equity release mortgage.

So you need a solicitor and a good IFA or broker specialising in equity release and knowledge in BTL as well as regular mortgages to open all the avenues for you.

As the house is rented out you need a BTL mortgage for it and you need to ensure you have the correct Buildings insurance as well.

Jacaranda48

:T Thanks a million for your advice-can you advise further on where to find an IFA or broker who is specialised in Equity release and Buy to Let mortgages?

UK007BullDog wrote: »

You need to speak to an IFA or Mortgage broker who is specialised in Equity release.

Your mother opted for a mortgage where the interest is rolled up every month and added to the mortgage, hence it will grow faster and faster.

You can pay it off either through your savings or depending on your age and situation with a mortgage on your own property using the money to pay that one off.

Even with power of attorney some lenders will not touch your moms house to give you a mortgage to pay of the equity release mortgage.

So you need a solicitor and a good IFA or broker specialising in equity release and knowledge in BTL as well as regular mortgages to open all the avenues for you.

As the house is rented out you need a BTL mortgage for it and you need to ensure you have the correct Buildings insurance as well.

UK007BullDog

You sent me a private message but the system wont let me reply to you. Pls check your settings.

Try here: www.unbiased.co.uk