Parents are selling house as last resort - HELP!

Lisa23081

Ok....need some advice here. My parents have £36k left on their mortgage with Bradford & Bingley, which is interest only. It is due to run out at the end of August and he called them for an extension, but they have refused as they are now "cutting back" on their loans due to being taken over by the Government.

They have offered him an extn for one year, but it has to be a repayment mortgage, which works out at just over £2500 per month - and seeing as my father is on pension credit and attendance allowance, this is a no-go!

We've decided the best way forward is to sell the house and have contacted B&B to let them know. I've explained my fathers circumstances and they are going to send us an "Income & Expenditure form", which we fill in so they can see how much spare cash my father has each month. They MAY be able to extend the mortgage by 6 months, but this isnt guaranteed.

If they can't, I need advice on what are my other options. We dont want to release the equity in the house and would rather get another temporary mortgage to cover the amount of time between now and when the house sells.........but where or who do we go to??

Thanks!

Lisa :rotfl:

SouthCoast

Facing the prospect of repossession can be frightening, but it’s important to remember that you are not alone. There is a lot of help available from government, from lenders and from advice agencies. The information here will give you the tools you need to prevent your home being repossessed. You'll also find stories from some of the 330,000 homeowners who have already received help and advice.

http://mortgagehelp.direct.gov.uk/default.aspx

Conrad

There are lenders for this sort of thing, but you say they want to sell anyway so I'm a bit confused as to why you want another mortgage?

jockosjungle

How can a morgtgage run out with £36k left to pay? thought you just rolled on to the standard deal?

R

maninthestreet

jockosjungle wrote: »

How can a morgtgage run out with £36k left to pay? thought you just rolled on to the standard deal?

R

I think the OP may mean the mortgage term comes to an end, and her parents have been paying the interest only, and none of the capital.

margaretclare

I couldn't understand the figures - £2500 for £36K, until I read that it was going to be for one year only.

They're in a tight situation!

Possible solutions: Shop around for a better deal. Doesn't have to be with B&B. Make a list of all the possible mortgage lenders, ask the question, they can either say 'yes' i.e. over a longer period of time, or they can say 'no'. Parents won't know unless they ask. Spend a few hours just going down the list.

Equity release may be a last resort, as they have fewer options than we had when we did ours in 2003. We released enough equity to pay off the original mortgage, otherwise we'd have been repaying until we were 83.

If they sell up, where do they plan to live?