Debt and House ownership Question? New here!

Muststopworrying

Hi all,

Just need small bit of advice so I know if my idea will work..

This is nothing dodgy but I need to know if there is any thing in place to stop it happening.

Someone immediately close to me has a mortgage, and has some loans which on investigation really have gone mad with the interest, shouldnt have taken then in the first place, but....

Now the person is unwell with a critical inless and looks like will not be able to return to work so at some point a problem is going to arrise with the paying the mortgage, and secondly these loans

I think, i am right in saying, if i were to pay off the mortgage on the house, then put it in my name, then it is safe as i will be able to afford the repayments ok. Then if the loan company will not take into account the health situation and become demanding, the house should not be in the equation? as it is in my name, even if the person is living in it?

The reason i say this is i would rather secure a roof than i would line the pocket of the loan company, i will never see how the bank ever suggested or even allowed the loan to go ahead as the figures are just hideous, and i would say 80% of the amount due is interest.

It seems an easy solution, so just thought id throw it out there and see if anyone has been in anything similar.

We need to look into it all but I am hoping there are benifits available from the goverment etc...?

The Mortgage has been paid up to now on a PPI but sure enough, just for 12 months. There is a policy in place but think this is just life cover, and read amoungst it, if the next level of protection had been taken then the mortgage would have been paid indefinately and a reasonable amount of money would have been paid into th bank account each month as well, if only eh! I believe the bank advised this next level, but it was a fair bit more each month so the cheaper option was taken, so guessing there is no come back on them?

Thanks in advance for any advice

10past6

Muststopworrying wrote: »

the house should not be in the equation? as it is in my name, even if the person is living in it?

If the debtor has no vested intrest in the property, i.e not joint mortgaged / share in the property, then the creditor cannot secure the loan against the property.

However, you need to tread carefully and take professional advice, at present the debtor may well show as having a property on the land registry.

MrsTinks

If the debts are secured on the house then it all becomes a bit technical - you really need to get some proper legal advise on this I think.
The only way to protect the house is for you to buy it I think and put the mortgage and deeds in your name and the current owner would then become a tenant - then you have the technical fun of declaring an income that might be taxable and other fun stuff... I would tread very carefully and get some legal advise on this.

Muststopworrying

Thanks for the quick replies

The loans are not secured against the house no

It just came to be as a way to protect the house etc...