savings plan with interest only mortgage.

jarrad

I am not sure it Martin himself reads these post's but if not someone else may be able to give me some advice. 8 years ago my mother and father decided to sell their house in Nottingham and buy a house in cornwall. They didn't have enough equity in their house to purchase the house they wanted, so took out a £20,000 interest only mortgage for the shortfall. She was also told that in order for TSB to give her this interest only mortgage she must also take out a life assurance to run alongside the interest only payments, which was £79 a month, this would ensure that if one of them were to die then the £20,000 would be paid off. The term of the mortgage was 20 years and she was advised that if her and my father were still alive after the term then she could either pay the 20,000 back or take the interest only mortgage on again. by this time,however, my mother and father will both be in their 80s and are worried that they will not be given life assurance at this age and so will be forced to sell their house. After doing a little research I note that they should have been advised to take our a plan rather than the life assurance have they been misold this assurance?