Need to raise £45K

ChloeMudpaws

I Need to raise £35K

I own my home outright (worth approximately £250,000) and would like to know the best way to raise £35K.
For the first 2 years I could pay back approximately £250.00 per month and thereafter £650 a month, so would not want to be tied to an early repayment charge.

I would appreciate any advice.

Many Thanks.

hcb42

for a remortgage of current home and under 25% LTV won't be too difficult to achieve, - assuming you meet their lending criteria and affordability etc...presumably during yr 3 > you plan to overpay on the initial loan terms

getmore4less

Will the money be used immediately.

Might want to consider an offset for full flexability

@ 5% £250pm would require a 30y loan. 15y for a 0% loan

Age might be against you for such a low payment to start with.

Are income multiples OK.
Any other debts

Why only £250 for 2 years then £1k

ChloeMudpaws

Hi,

Thank you, I've never heard of an offset, would it be suitable?

Having just recalulated it is £35,000 he needs (that's better!)

This is for my Brother aged 49 and on his own

To cut a long story short in 2 years he will no longer need to pay £800 towards care fees as our Mothers Money will have gone by then (4 years in total) and we believe and hope the council will take over the majority of the fees.

He is in a mess with money, but he doesn't need it all at once.

We have based the requirements (over a 2 year period) as follows.

Salary Shortfall £400 a month over 24 months £9,200
Outstanding Loan £10,000
Money owed to Mum £3,600
Mortgage Repayment £250 a month over 24 months £6,000

2nd hand Wheelchair accesible car after PX £7,000.

I know there are other possibly options easier options but he will not sell his house.

Thank you for any advice on the type of mortgage we should be looking for.

getmore4less

Start with the wheelchair accessable car, why does mobility allowance not cover this?

Not sure about the care home fees, why is he paying? if it is not his money why does he have a shortfall?
can't you pay some towatds the fess?

Same with income not clear why there is a short fall
etc.

I think a proper review of the finances with a SOA is needed
http://www.makesenseofcards.co.uk/soacalc.html


Putting the reasons/alternatives to one side

Back to your question, you borrow to help out

An offset is ideal for this kind of borrowing cycle, you set up a line of credit and draw down as needed, reducing the interest owed.

If you don't draw down all the money then it can be self funding for a while as well by borrowing to pay the required monthly payments

First direct,barclays, and others all do offsets.

ChloeMudpaws

We have used 50% each of the money from my mothers house sale to pay off our own mortgages, in turn we pay £800 pcm each to my Mum rather than the Building society, (which is far more than she would have got in interest.) For the last 9 months he has had to drop to £400 a month ( I have stayed at £800) as he couldn't afford it.
I pay my half but can't afford to pay my Brothers, he has a shortfall because he doesn't earn enough from his job and doesn't want to move house.

I will check if mobility will help with the car, that's a really good idea, As Mum is in full time care a mobility car would only used for afternoons out at the weekend, so I will see what they say.

Offfset sounds a good idea.

beecher2

Won't the council want to know why your mum's money was used to pay off your mortgages? Isn't that deprivation of capital? Did you get legal advice on all this as it sounds dodgy to me and I can't see why the council would pay for the fees when the money has been spent in such a way.

getmore4less

So your brother could not afford the house

tries a short cut using mums money that will have to be paid back,

still can't afford it

You are now going to put your house at risk.

right mess all round.

Why can't mum live with one of you? no medical needs since the NHS are not paying.

ChloeMudpaws

Yes, we have had legal advice, and council advice. The council are not paying the fees, nor are we asking them to nor will we for at least another 2 years, (which will be over 4 years in total that we have been paying.)

The house had to be sold to pay for her care, As far as we, or the legal people we spoke to are concerned there is no legal requirement to place the money from the house sale in a savings account, what we did with it (we have POA as well as our Mothers agreement) seemed the best financial solution. We had previously agreed that if a lump sum was needed we would be able to
remortgage to get it.

Deprevation of capital would only come into play if we had claimed 2 years ago the money had gone and that the council needed to pay the fees. We haven't done this, nor do we intend to do it until we provide an audit trail to prove it genuinley has gone, which is not for at least another 2 years.

My Mother's medical condition is not relevant to the original question, suffice to say it would not be possible for her to live with one of us.

All I am trying to do is ask for advice on the best form of loan/mortgage for my Brother to release some of his capital.
An offset mortgage seems like a good idea and I thank you for that. I will look into it.

Mallotum_X

If your mothers house was in her name and you sold it and kept the money then you really could be in a mess.

When it was sold was she capable (mentally) of making decisions on what to do with her money?

It could easily be argued that you shouldnt have helped yourself to her money, especially when she needed it for care fees. Are you expecting your brother to pay you back or are you happy to bail him out of this mess. Personally id be talking to him about selling up, your mother's money shouldnt have been tied up in his mortgage.

You might also want to think about getting some legal advice on what you have done with the house proceeds, as it really doesnt sound very legal on the face of it. POA doesnt allow you to spend other peoples money for your own benefit even if you will then given them some back. It was a risky decision and one that could bite you both.

I would be very careful before lending your brother money as you might lose that plus have to raise money to repay your mothers money still invested in your house.

getmore4less

We had previously agreed that if a lump sum was needed we would be able to remortgage to get it.


That was a very risky assumption.

Did you remortgage or overpay, if overpaid you may be able to draw some of the money back.

An offset mortgage at the time would have been an ideal solution that allows you to draw down the money allready overpaid,

There is one offset that allows you to offset other peoples money which would have been ideal for this situtation.
readup about offset plus from YBS
http://www.ybs.co.uk/mortgages/types/offset/offset_plus/offsetplus_b.html

Since your brother needs to raise the cash is should be a remortgage of his house is that going to be possible?

If it has to be your mortgage maybe you raise the capital you still owe back to mums pot and let the brother take over all the finacial risk from here and that way if things get tough for him it is his house and not yours that gets sold.

Have you checked mum is not eligiable for NHS continuing care?