Loan for a pensioner

duval75

Help! My mother in law has kindly offered to help us out with our debts. She is 76 years old and a homeowner. She wants to get a £20k loan to repay over 5 years. Does anyone know where are the best deals for this kind of thing? Or any other advice would be much appreciated. Thanks

CLAPTON

whats her income?

why doesn't she just give you regular money to help pay off your debts

Emmzi

do you mean she wants to give you the money, or that she is going to take out a loan and you are going to pay her back?

At her age she should be able to relax and enjoy her hard earned pension, surely? Not repaying money for you. (Or worrying about you msissing payments. Read the "lending to family and friends" sticky, no one ever thinks it will be them but look at the length of that thing.)

She will also find it difficult to get a best-in-market loan due to her age.

Tell us more about your debts and why you need help with them. There may be a better way for all concerned.

margaretclare

Well, it's kind of her, but...

In principle, isn't it a bit silly, and not financially-astute, for anyone - pensioner or not - to go into debt to pay off another person's debts?

Why replace one debt with another? Sorry, I don't see this.

duval75

She would have been able to give us £20k but she has just tied it up in a ISA, so has said for me to check out loans for her to take out £20k and repay it monthly, hopefully repay it early once she can cash in the ISA in a couple of years. She wants to help us out as she said the money would have come to us when she passes, so she rather us have it now, as we were going to have to sell our house to repay debts. We have credit card detbs and a loan and our mortgage is due to come to the end of its fixed term next March, so we really need to get rid of the debts before the mortgage goes up again, otherwise we won't be able to afford it.

Apples2

duval75 wrote: »

Or any other advice would be much appreciated. Thanks

Oh! we can help you out with that bit okay!!

What a complete disgrace the pair of you are.

Why should this 76 yr old woman pay for your financial ineptitude?
I'm sure she does work harder than the pair of you but even so, at her tender age she should be enjoying life, not getting fleeced & abused by those who should be caring for her.

duval75

We both work full time and were willing to sort out our own finances ourselves, but she would rather help us out. We aren't fleecing her and I feel it's unnecessary for you to comment in such a way, considering you don't know what relationship we have with her. We are an extremely close family and look after her and see her 3 times a week. She is a healthy pensioner with a very active social life, she is very astute and would not do anything she did not want to. We did not ask her for help, she has offered.

bouncydog1

You need to go over to the debt free board and post up a statement of affairs to see where you can cut down on your outgoings and get your own affairs in order!

Whilst the intentions of your mum in law are admirable, it would seem that £20k is possibly the only savings that she has plus the equity in her property.

What happens if she manages to get £20k then falls ill and needs money to pay for her care? At the age of 76 she could live another 20+ years and will need that £20k to help stave off the costs of inflation etc - what about the upkeep on her home - how will she fund that?

It's one thing parent's helping their children if they can afford to do so without possibility of future hardship - it's another entirely if they have to hand over their life savings.

And by the way, the two of you are adults and should be able to manage your money without running to parents - as you have credit card debts and a loan you have clearly been living beyond your means (unless there has been an unforeseen event such as redundancy and long term unemployment). As suggested go over to the debt free board and start taking responsibility for your actions.

duval75

Thanks for your advice....we have had redundancies in the past and problems with cars that had to be paid for on credit cards, loan etc. We normally are financially secure but with the current climate of job losses again and the prices of everything going up, we decided we needed to look at what we can do to start afresh, selling the house was the answer to that. My mother in law, does not want us to sell our house and has said that this would be a gift and she would have been leaving us alot more than that, but would rather help us now when it can make a difference. She is concerned and so are we that we may not be able to get back on the property ladder. We do have a very tight budget and have never not paid any of our bills, it's just the repayments of the mortgage are due to go up and with lack of overtime etc, we would struggle to pay for everthing.

Emmzi

the fee for cashing in the ISA early will be less than the interest charges on a loan.

Do that.

Apples2

It just gets worse...

You seem to be almost counting the days until the old dear croaks it. Impatient of waiting, you want an advance of what you consider yours.

I hope she leaves it all to a cats home. I shake my head with shame for you.