Advice appreciated.

Gazza1964

Hi all,

I was hoping for peoples thoughts on the following problems I have - all comments greatly appreciated.

My partner and I currently have about 23k of debt on a 120k house.

My parents own their own home, about 120k also, and have been looking to release equity but have come up against a brick wall with all the SHIp schemes - theres nothing wrong with the property but these companies wish them to carry out work in the house which they are not willing to do - not because of the expense but because at there age they dont want the mess - i.e. it would mean floorboards up redecorating ect - its just too much for them.

We have already lent them 5k to be paid back when ever and are considering remortgaging to 33k to give them another 10k and to encompass about 7k of the previous 23k into the mortgage. We have about 10k in savings but this is emergency money and will not touch it.

Do people think an offset mortgage at 5.29% with IF till 2014 would be better than a fixed rate for around five years at about 4.79. We hope to take our remortgage out for about 8 years meaning payments off about £420 pcm -

Any ideas on a better way to release funds to my parents or a different type of remortgage would be helpful.

Oh - our current mortgage has a drawdown facility on an interest only basis which has to have the same term as the mortgage , 9 years, interest only payments on 10K would be about £120 pcm but would mean finding 10k in nine years and seems the most expensive option.

Thanks for your time and trouble.

Gazza

Debt_Free_Chick

Why do your parents need to release equity?

Gazza1964

They wish to close down their existing credit cards to free up more money per month.

My parents are not well-off and have only state benefits a small amout of savings and the value of their property.