Helping parent with mortgage.

wes1972

My parents took out an interest only mortgage (£70000) about 5 years ago in full knowledge that the debt would not be repaid before death. :mad:

My father passed away about 2 years ago and so my Mum has been left with the interest only payments (can't remember exactly how much per month but it does seem high). The tie in period will end in the New Year.

My Mum is now 63 years old and she would like if possible for me to inherit the property. The payments are beginning to burden her now especially as she wants to retire.

What is the best way forward for us in this situation?

Is it best I just contribute to the current mortgage (which I do not feel is competitve) or should she remortgage to a better deal with me as guarantor?

I also have plenty of equity in my house should I need use it.

Many Thanks

Wes

Thrugelmir

You should sit down with your mother and do some retirement planning.

As ideally you should seek a long term solution.

Rising interest rates and a falling property market in tandem would reduce your mothers capital and income considerably.