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Have i done everything?
willing2learn_3
Posts: 759 Forumite
Hi everyone,
i'd be really grateful to receive any thoughts/advice on this one. I have typed it out twice already – for some reason I have been losing my posts when I submit them so this time it will be very brief.
The facts of the situation are that my father passed away suddenly a few months ago. He was unlikely to have been well but we didn't realise and it seems that he did not renew his insurance on a loan secured on the house. There is also no insurance on the first mortgage. My mother is going to try to sell the house because she cannot afford the combined mortgage of £1800 per month. She is 64 years old.
The amounts left to pay on the first mortgage are £42,979.53 and on the loan are £66000.00. With redemption fees after a house sale this would amount to £114406.19. The house is being put up for sale at 199000.00. This would leave equity for my mother of about £84,593.81, if she sells.
There are two issues. Firstly I have consulted with a mortgage advisor and he says there may be a chance that I could remortgage with my mother. He has asked to see my credit file and he has my mothers. (he is regulated by the FSA).
However I think the chance is very small. The first mortgage company said that they could consider a remortage with my mother if I earned £20,000 pa, I don't, I earn considerably less. They are willing to still consider it if we have a third person on the mortgage, but the person that is interested does not have enough income. She is willing to pay a lump sum of £20,000 and pay £200 per month, but it's not enough.
So I have two issues I am trying to resolve.
Have I done enough as far as considering a remortgage with my mother goes – or is there a lot more I could be doing? Should I be contacting other mortgage advisors. I know Martin has written articles on this stuff and I have scanned these, but there has been so much to deal with recently i'd be interested to hear thoughts/advise relating to this situation as well.
The other issue is if mum sells, I don't think she can buy another property even with a sizeable deposit.....her income is about £750 per month, so she would struggle with a mortgage.....although the first mortgage company have said they would consider it if that situation arose. She could rent. She has recently been given some advice about getting a lifetime mortgage. This was when she called an equity release company. She only grasped the basics of what they were talking about so I will have to look into this further. Mum is very capable of managing her finances, it's just she never had to before. Does anyone know anymore about this sort of thing? Mum has also wondered whether she could invest in a shared housing scheme...these are just thoughts right now. She is just wondering if there is any way she can invest her money, rather than rent, but of course she is prepared to do that if she has to.
Thanks for listening. I just need to bounce these thoughts around with others. I feel very alone with all this as I am an only child and not had to deal with any of this before. Any thoughts, advice, etc, would be appreciated.
i'd be really grateful to receive any thoughts/advice on this one. I have typed it out twice already – for some reason I have been losing my posts when I submit them so this time it will be very brief.
The facts of the situation are that my father passed away suddenly a few months ago. He was unlikely to have been well but we didn't realise and it seems that he did not renew his insurance on a loan secured on the house. There is also no insurance on the first mortgage. My mother is going to try to sell the house because she cannot afford the combined mortgage of £1800 per month. She is 64 years old.
The amounts left to pay on the first mortgage are £42,979.53 and on the loan are £66000.00. With redemption fees after a house sale this would amount to £114406.19. The house is being put up for sale at 199000.00. This would leave equity for my mother of about £84,593.81, if she sells.
There are two issues. Firstly I have consulted with a mortgage advisor and he says there may be a chance that I could remortgage with my mother. He has asked to see my credit file and he has my mothers. (he is regulated by the FSA).
However I think the chance is very small. The first mortgage company said that they could consider a remortage with my mother if I earned £20,000 pa, I don't, I earn considerably less. They are willing to still consider it if we have a third person on the mortgage, but the person that is interested does not have enough income. She is willing to pay a lump sum of £20,000 and pay £200 per month, but it's not enough.
So I have two issues I am trying to resolve.
Have I done enough as far as considering a remortgage with my mother goes – or is there a lot more I could be doing? Should I be contacting other mortgage advisors. I know Martin has written articles on this stuff and I have scanned these, but there has been so much to deal with recently i'd be interested to hear thoughts/advise relating to this situation as well.
The other issue is if mum sells, I don't think she can buy another property even with a sizeable deposit.....her income is about £750 per month, so she would struggle with a mortgage.....although the first mortgage company have said they would consider it if that situation arose. She could rent. She has recently been given some advice about getting a lifetime mortgage. This was when she called an equity release company. She only grasped the basics of what they were talking about so I will have to look into this further. Mum is very capable of managing her finances, it's just she never had to before. Does anyone know anymore about this sort of thing? Mum has also wondered whether she could invest in a shared housing scheme...these are just thoughts right now. She is just wondering if there is any way she can invest her money, rather than rent, but of course she is prepared to do that if she has to.
Thanks for listening. I just need to bounce these thoughts around with others. I feel very alone with all this as I am an only child and not had to deal with any of this before. Any thoughts, advice, etc, would be appreciated.
0
Comments
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Has your mum looked at old peoples flats?
My dad sold his home 5 years ago and is very happy in a one bedroom flat belonging to a housing assocation.
He put the money from the sale of his home into savings accounts and ISA,s and enjoys a comfortable retirement with money for holidays and new freinds living nearby0 -
Old? at 64? lol! but she is considering renting as well thanks.0
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Sorry should have said over "55s" sheltered accommadation.
Some very nice places being built in my area with cafe,s fitness centre,shop,hairdressers and on site help IF you need it.0 -
Anyone else have any thoughts?0
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don't mind what those thoughts are......
:-(0 -
Have you thought of selling the house and then you buying a new house and your mother living with you? I really can't imagine your mother getting a mortgage as most companies want them to be paid before retirement age. Sorry I don't have anymore advice.0
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