Life time mortgages

lorraine2767

Hi I am really hoping someone can help me out as I am really worried for my parents.

They had a mortgage with an endowment but of course it didn't pay all the mortgage so they took out a interest only mortgage and then my mum has received a letter from the Coventry to say that it is due to be paid and that she has to pay £30,000. They were under the impress that they would be able to carry it on as an lifetime intereste only mortgage but the Coventry have said no they don't do that anymore.

My mum is 65 and my dad is 70 years old there bungalow is worth around £160,000 if not a little bit more.

Is there anything that can be done, my mum is putting on a brave face but my dad doesnt know as he is a worrier like me and it would make him ill.

My mum still works but my dad is finishing in November when he is 70.

Any help would be much appreciated.

kingstreet

They need to talk to an IFA or a Mortgage Broker with lifetime/equity release permissions. There are products for them, like the Halifax Retirement Home Plan, but they need to seek advice.

handytips

I am able to do lifetime mortgages, they are quite straight forward. However it is an area where you need good advice. You can contact me via my homepage.

beecher2

Your mum needs to let your dad know - it isn't fair on him to keep him out of the loop.

handytips

At the moment they would be able to draw down approx 27% of the property value, and then a further percentage in approx 5 years time. I cannot give you anything more concrete without knowing the full in and outs of your parents circumstances and yes your Mum must keep you Dad informed as it is a very big decision to make. If you need any further help just post your questions.

lorraine2767

beecher2 wrote: »

Your mum needs to let your dad know - it isn't fair on him to keep him out of the loop.

Of course we will tell him he know they have the mortgage at interest only but at the moment there is no need to make him ill is there until we find out what we can do.

izools

lorraine2767 wrote: »

Of course we will tell him he know they have the mortgage at interest only but at the moment there is no need to make him ill is there until we find out what we can do.

It's better he have time to prepare himself for the potential eventualities rather than have a sudden shock and be left with no room to make a decision or time to accept it.

DVardysShadow

lorraine2767 wrote: »

Of course we will tell him he know they have the mortgage at interest only but at the moment there is no need to make him ill is there until we find out what we can do.

Does he not have a part to play in finding the solution?