My Mum's Mortgage

shirtbutton · 26 May 2011 at 5:46PM

Hi to all....New to this so bear with me.
My mum passed away in december, very sudden. She had a lifetime mortgage with Prudential on her property which i am in the middle of selling, but I have been told by the Solicitor today that the figure will go up as Prudential are charging daily interest on the life time mortgage....:mad:

Is this right. :mad:

Hope someone gets back to me soon....so worried about this.

Thanks
Tracy x

MortgageChallenge2011 · 26 May 2011 at 5:58PM

Unfortunately yes, big name companies like the Prudential jumped onto the bandwagon of equity release by giving it a name which didnt sound like equity release!!! And as you know equity release is bad news, because the company knew that if you cant sell it/ or there was no next of kin they would have the house which would be valued far more than the debt outstanding. Get the estate agent to rigoursly check out the purchasers to prove they can afford the house either by savings or by way of mortgage decision in principle. Time isnt on your side so if your agent checks them out early then less likely of any problems and further delays. Best of luck,

opinions4u · 26 May 2011 at 5:59PM

This sort of mortgage, if it's what she had, basically gave the borrower a chunk of cash and no mortgage repayments.

Interest charged rolls up and is repaid when the property is sold.

A useful tool to give an older customer a more comfortable lifestyle - but it has the unfortunate side effect of reducing the value of the estate as the debt increases daily.

A "normal" mortgage would still require the executor to make payments until the property is sold, but I'm assuming this scheme doesn't.

MortgageChallenge2011 · 26 May 2011 at 6:05PM

Worth a shot but give Prudential a call and explain situation. Reason being is that they stopped these mortgages 2 years ago so they are running that side of the business down. They also sacked quite a few people when they decided to pull it to save money. So staff from other departments tend to oversee it which can be a hassle. Thats why companies will offer incentives to get the money repaid to them eg coming to an agreement on the interest to be paid.

Give it a shot...