Mortgage Help for recently widowed

Met_Bobby

feisty1 wrote: »

I am CF7 qualified

Equity release made clear from the FSA/ER can affect eligibility for the means-tested benefits
http://www.moneymadeclear.fsa.gov.uk/products/equity_release/equity_release.html
http://www.ship-ltd.org/

I passed CF7 in October 2007 and I am familiar with the FSA site. However, I am not authorised and don't have practical experience therefore don't claim to be an expert.

Pension credits won't pay off the mortgage in 2010.

getmore4less

One option not mentioned is to talk to the lender and see if they will extend the term. They may as long as the interest gets paid.

If there are pension credits covering the interest and they do extend the term that give more time to look for other solutions.

If family members could pay off the mortgage then what benifits could be affected?
Pension credits for the mortgage but they were to pay the interest so no impact on net income.
Anything else? I can't think of any the only thing that has changed is that the debt has gone.

skint_chick

It would be worth a call to her mortgage lender - as notisis said if your mother is receiving pension credit she should be getting help with the interest payments of the mortgage. If she were to get help with the full interest payment then any payment she/you make to the mortgage should come off the capital - as long as the mortgage allows overpayments this would reduce the balance a little.

Some lenders allow terms to be extended depending on your mothers age - it's not likely to come to 2010 and they demand the £16,000 or she'll be out on the street -but you need to be realistic about the chances of the mortgage being paid off in full. On your mother's income even if the interest is being paid to clear the mortgage in 10years you'd need to be putting over £100 a month towards the capital -is this realistic? Can the family afford to help?

feisty1

[quote=skint_chick;18417331]It would be worth a call to her mortgage lender - as notisis said if your mother is receiving pension credit she should be getting help with the interest payments of the mortgage. If she were to get help with the full interest payment then any payment she/you make to the mortgage should come off the capital - as long as the mortgage allows overpayments this would reduce the balance a little. quote]

quote]Well, sadly this time has come and its not taken care of. They had an interest only mortgage and in December 2010 it elapses.

Johnny11_2

Many Thanks for all your replies, you have been agreat help. She is contacting the mortgage company today

John