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Lifetime Mortgage / Bankruptcy / Debt Question

Hello everyone

I have a question, and I hope that someone can help. Not sure if I'm posting in the correct place or not??

My parents are in a really serious financial mess. they own their home, but have a lifetime mortgage (equity release through Norwich Union) that they did some time ago, to try to help pay off some of their debts. Due to unemployment over a period of time their debts are very high and they are struggling to actually pay them. I am concerned that they may be facing bankrupcty.

I am wondering what the situation is with the lifetime mortgage if 1. they were made bankrupt - would they lose the house? 2. if they weren't made bankrupt but looked at one of these Sell/Rent Back-type schemes, is that even possible to do after getting a lifetime mortgage?

Any advice would be gratefully received!

Many thanks

Simon

Comments

  • Does nobody have any advice? :(
  • suze_g
    suze_g Posts: 68 Forumite
    Sorry, I don't have any advice as it sounds a complicated situation, but I would suggest that your parents got some advice quite quickly. They need a debt specialist I would think. Try their local CAB to see if they have one, or can recommend one.
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