what to do ill explain

samuelthomson240

i jointly own a house with my mother we bought it 5 and a half years ago over 25 years at 145000 with a mortgage of 97000. my father died and ive sold his house the estate is 83000 my mother paid 5500 to do the house up to sell which leaves me with around 78000 cash with around 88000 left outstanding on the mortgage and the deal with llods tsb fixed for the next 18 months at 5.99 %. What should i do pay it all off remortgage with another company or what . im 41 single male and my mother is 66 and semi retired shop worker. thanks for any reply i know its an unusual situation but im not sure what to do thanks john.

Cannon_Fodder

Remortgage may be hampered by mother's age.

What early repayment charge would there be to get out of the current deal? If substantial, not much point incurring it. Put the cash in the highest interest earning accounts you can find until the charge ceases.

Where does mother live? And you? i.e. Is this the one house between you, or is this an "investment" and you have your own places?

What is your mother's income situation - does she have a decent pension? Who pays the mortgage? What does your mother want to do?

More questions than answers, I'm afraid. Its not straightforward, you need to consider the whole picture...

getmore4less

Confused by the situation who has the money you or your mum.

Do you both live in the house.

There may be other option to just paying of the mortgage

samuelthomson240

i stay with her in the same house . as my father died intestate i received the money but im a civil servant and im scared my job will disappear . the tsb i think is 9 or ten percent redemption fee declining over a 5 year period from may 2007 so nearly 18 months left could cost quite a bit i want as much paid off as soon as possible . i also want advice as the mortgage would be in my name what should i do then to try and pay it off as soon as possible thanks john

marry7410

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dimbo61

Check with TSB if you can overpay and what limit IE 10%
You could also ask if you could reduce the term down from the current 23 1/2 years left to say 5 years!
Now this would up your mortgage payments big style but you have the money sitting in the bank earning little interest so give them a call and ask !
It cost us £50 to reduce our term and hence clear the mortgage quicker

jamesd

Is his house the one where your mother has been living? Where will she be living? Where will you be living? That is, is his ouse the one that was also her house or are their two (his and hers or his and theirs) or three (his, hers/theirs and yours) around? More?

Who are the people listed as responsible for paying the mortgage?

Who owns whatever property the mortgage is on and what is the split of ownership between the owners? For self protection (mother being scammed etc.) you'd want to be sure that the split of ownership reflected the amount you've paid into owning any property that is jointly owned.

Is the mortgage portable? If it is, do the people responsible for paying it have another property that they could port it to instead of repaying?

The cost of ending a mortgage deal to sell the property out of an estate would come from the estate if the mortgage was taken out by the party whose estate is being settled.

How did you inherit? Normally the spouse would inherit, so what means did the money take to get to you? If it went to the spouse then to you from the spouse then that would be a gift in inheritance tax law. If the spouse was to live in the house it would be a gift with reservation unless market rent was being paid. If a party dies after having made a gift with reservation then it's treated for inheritance tax as though the gift hadn't happened. This only matters if there's a chance that inheritance tax will be due on her estate. It seems unlikely that inheritance tax will be due on her estate, given the numbers mentioned so far and her occupation.

getmore4less

I asume from what you have said, mum & dad living seprately and you inheriting, that they were divorced.


If you ar ein fear of your job what sort of payout are you looking at?

I would keep a big emergency fund and start thining about retirement planning, paying of debt is part of that plan.

If it is worth paying don the mortgage or waiting for the ERC to go will depend on detailed numbers.

What's the plan for you and mum and where you live and who owns what of the house?