Re-Mortgage Query

getmore4less

what are you doing about the other debts?

If these are in his name only then you need to settle them from the estate or get them writen off. There is no obligation to take them on.

Was the house common tenants or tenents in common?
This can make a big diference.

getmore4less

Have you resarched where all this money went, there may be some around somewhere else

Lloyd74

The other debts have been taken care of and most have been written off. There are one or two companies still wanting to be kept "informed" of the situation though. We are not concerned with them as we know we don't have to take them on.

There is a saying "robbing peter to pay paul" and we believe this may have happened with his loans and credit cards. As he was a self employed taxi driver, his takings were going down week by week due the current financial climate and this is why we think he was using these loans to get by and pay the bills.

Excuse my ignorance but what does common tenants mean and how can it make a big difference? Cheers!!!

VIGILANT22

If you own your home as joint tenants then both of you own the whole of the property, so when one partner dies, the other automatically becomes the sole owner of the home. With tenants in common, you each own a share of the property, typically split half and half.

If this had been the case the BS would have been aware

getmore4less

Lloyd74 wrote: »

Excuse my ignorance but what does common tenants mean and how can it make a big difference? Cheers!!!

Joint tennats.(I use the terms interchangably, probably shouldn't)

It changes the way the house ownership/equity is dealt with.

blueberrypie

Could your mum perhaps take in a lodger? AIUI you can rent out one room without needing to be concerned with taxes etc. The rental income would help towards the mortgage (and if your mum is now living on her own, she might enjoy the company and/or feel safer with someone else around).

Lloyd74

Thanks blueberrypie, this is one avenue that we have considered and we may well go down it in the near future.

I was also wondering if we should ask the building society if they are willing to split the monthly direct debit payments 3 ways between my mum, my brother and I? Is this feasible? Or should we just give mum the cash when the payments are due? My mum would then have cash left over each month to put away and save until the point comes where we may be in a position to pay off the bloody thing or knock a large chunk out of it.

There is only 3 years left on the fixed rate and after that I think there is another 8 years left. So it may seem like a long time but life is going so fast these days and it won't seem so long at all.

When the fixed rate is up and depending on our position, we may increase the term by a year or two to bring the payments down a little or if we are in a position to afford it we can decrease the years and pay it off quicker. Are there any charges for this?

VIGILANT22

they wouldnt agree to 3 dd as 2 of you are not named on the mortgage so you will have to make your own arrangements
is it not feasable for the 3 of you to go on the mortgage at this point, as yr both younger this will mean you can extend the term ie 20yrs which will bring the payments down and give you some breathing space as to think what's going to happen in the future.
yr salary would have to be able to support yr owm mortgage plus 1/3 of the new mortgage
is yr brother likely to stay at home for sometime, if not and he is on the mortgage then wants to move in with a partner and get his own mortgage being on this motgage may prevent him..

VIGILANT22

what is the value of the house
how much is owed on the mortgage

Lloyd74

I probably wasn't thinking straight this morning. What we will do is my brother and I will just pay her whatever the shortfall is each month and see how we get by. Doing the calculations we should just about be OK but it will be tight.

I think the value of the house is £130k to £140k and as he re-mortgaged there is £120k left to pay so there is not much equity but at least its not negative.