In need of some help

desperatelyseekingadvice

Hi – I am new to this site and am in real need of some advice from you all please. When my husband and I bought our first property, my parents took out a mortgage of £45,000 on their property to help us on our way, which we pay for each month. Fast forward to now and we have our own mortgage of £105,000 on our house, plus this payment to my parents. My Dad passed away this year and my mum is now 65 so her mortgage company need her to repay the amount in full by February 2010. We have known about this for some time and were planning to absorb it into our mortgage with Halifax. By some awful error (it seems I accidentally deleted my direct debit details via online banking in 2007) I missed one mortgage payment in 2007 (although I had a few thousand in the bank at the time and as soon as I found out about it paid over the telephone in full and reset the debit instruction). Now Halifax are telling me I can’t borrow extra money on my mortgage to absorb this £45,000. But they are offering me a personal loan of £9,000! sorry, please bear with me I know this is a long story! So, I have what seems to be a very good credit rating (experian gave me a score of 999) and we have a current loan to value of just over 50% on our property (the extra would take us up to 75%). Our house is worth around £200,000. I would move to another lender, but I am concerned that it won’t go through because of the arrears error and that just applying would damage my credit rating… plus, since having children I work reduced hours at work. My salary is £28,000 but this works out as £23,000 pro rata and my husband is self employed with a growing business. His annual income works out at about £15,000.

I don’t know which way to turn and I actually feel sick with worry about the whole thing. I know very little about my options financially, which is why I was hoping someone on this forum might be able to share some advice. Should I go for a secured loan to cover the 45k and pay the extra interest? Or should I try to get a couple of personal loans? I only have until February now and I just don’t know what to do. I am so worried I almost want to just put my house on the market to raise the money, but I know that is daft..

Thank you so much in advance for your help.

Pitlanepiglet

You may well find that your mum's mortgage co don't actually want her to repay. My Dad is 75 and has a small interest only mortgage that he pays out of his pension. The C&G have written to him for the last few years saying that they are happy to continue with it, despite it originally being a 15 year mortgage that expired some time ago.

[Deleted User]

Agree with the above,but if you do have to find the £45k then a re-mortgage shouldnt be a big problem,best thing would be for mum to tele her lender in the morning.

bryanbukowski

Yeah, definately check first that you do need to repay the £45k!

You have a number of options. The simplest would be to remortgage. At present it seems like a low LTV is expected though 75% should give you a few options! Having done your research about the different mortgage providers, don't be scared about taking the plunge, the worst that can happen is a single credit search which in the grand scheme of things isn't really a big deal.

As you've had a single missed payment in the past, maybe approach a lender that already nows who you are ie your bank. This helped me when approach HSBC to get my mortgage.

Your other option would be to look at a secured loan though wouldn't be my first port of call. There are options for you though so don't worry!

B