daughter's dilema

jack52

My daughter cannot meet her mortgage so I have decided to help, she has 12 months left on a fixed interest only deal with bank of ireland. I am guarantor on her mortgage but not on the deeds. My problem is should we remortgage now or wait and I take out a new mortgage in a year. I am 54 and have a good job own my house and financially stable. I have been advised by a friend to let my daughter remortgage in a years time and just give her the money to meet the repayments, that way when she sells I will not be liable for capital gains tax. The problem is she has a part-time job,2 children and a failed marriage. Would she get another mortgage without me or could I remain guarantor.

Trying_to_be_good

I would help her out in the short term, until the mortgage deal runs out, unless she's unlikely to be able to afford to keep the house in the longer term. Presumably something has changed financially which has left her unable to meet her mortgage payments? Is that for the short term or longer?

The debt-free wannabe forum has great people advising on how to cut down monthly outgoings, she might find some help there?

Kez100

I would start by doing a budget with her. How you support her and for how long will depend on what you find.

This way she takes ownership of the problem and there may be options for her to help too - ensuring she is getting all she is entitled to in benefits, cutting back on what she spends (sky? mobiles? going out?).

It also means that you know your help is valid help to keep her in a home not shoring up an expensive lifestyle.

dimbo61

Hi Jack
Your daughter should be getting working tax credit,child tax credit, child benefit, maintence from her EX and income from her part time job!
The Ex may well want the house sold so he can move on in his life and buy another house to have the kids ( some of the time ) and your daughter may also want to sell up and buy a place of her own!
If your daughter cant afford to pay an interest only mortgage she needs to consider downsizing or renting.
Wait until next year and see what she wants to do.
A number of building societies now take into account benefits and maintence such as Yorkshire Building Society Fresh start. GOOD LUCK