60+ mortgage help required

pjay2002

My mother has just told me that many years ago (17 plus) she bought a property but needed money to move in. She borrowed £10,000. She was told she didn't have to pay it back, as it would come off of the sale of the property, utilising a 60+ mortgage. She is absolutely distraught after receiving a letter from the company saying that with the accrued interest, she now owes £75,000. She has no savings and being someone in their 90s she is finding it difficult to cope when faced with debt, having never borrowed anything else in her life. Is there any advice anyone can offer or is it just she will have to leave it as it is. Thanks.

Trying_to_be_good

Was this equity release? Do you know what the mortgage rate was? It would seem to be about 13% by my maths, with all interest on £10,000 wrapped up for 17 years.

Is there a clause that says the capital plus accrued interest can never exceed the value of the property?

I know these products were unregulated at that time, though I believe they are now.

Robert_Sterling_3

"My mother has just told me that many years ago (17 plus) she bought a property but needed money to move in."

Find out when she bought the property.
Then also tell us how old you mother is now.
I agree with the 13% estimate of the interest rate if your 17 plus is taken to be 17.

"She borrowed £10,000. She was told she didn't have to pay it back, as it would come off of the sale of the property, utilising a 60+ mortgage."

Have you any details of the mortgage. Start Date, Finish Date.

It certainly sounds like a variation of Equity Release.
A typical house bought 17 years ago will have trebled in value during the past 17 years.
Perhaps you mother would be comforted by knowing how much her house is now worth and by knowing that she does not ever have to pay the amount owing.