Pensioners exploitation -advice needed

mtscotland

Have just discovered today that my 73 year old father in law was given a £66,000 mortgage by Bank of Scotland - to run for 40 years - yes 40 years- until he is 113 years old!!! He needed this to cover already out of control Credit card debts. Is this moral and do people think he has any come back? He has diabetes and has now developed cancer but perhaps it is the worry that is killing him.

TrickyDicky101

If he had £66k of credit card debts already, I'm sure he had plenty to worry about before taking out the mortgage. Is he incapable of making his own decisions (legally incapable I mean)? A mortgage is likely to be cheaper than credit card debt so in that respect he seems to have made a sensible decision. Seeing as the debt would have to be repaid whether on CC or mortgage, I would think minimising the cost of doing so is sensible.

opinions4u

mtscotland wrote: »

Have just discovered today that my 73 year old father in law was given a £66,000 mortgage by Bank of Scotland - to run for 40 years - yes 40 years- until he is 113 years old!!! He needed this to cover already out of control Credit card debts. Is this moral and do people think he has any come back? He has diabetes and has now developed cancer but perhaps it is the worry that is killing him.

How much was he paying on his debts prior to the mortgage?

What is the payment on the mortgage?

Has he borrowed any additional money (and does that benefit him in any way)?

Is the new payment affordable?

Does the difference benefit him any way?

Is it immoral? Not if he knows what he's agreed to. He clears his debts. He pays a (presumably) lower monthly payment that allows him to enjoy life more and when he croaks the remaining debt can be repaid from the equity in his house.

It could be suggested that building up £66k in unsecured debts is perhaps a tad foolish.

What alternative approach do you feel would have been better?

catieeb06

Sounds like he has a retirement home plan mortgage. This is interest free mortgage typically taken out over 40 years to be repaid after death or someone takes over it upon his death.