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Capital raising on uncumbered property to pay off debts.
jpatty28
Posts: 3 Newbie
Afternoon,
I wonder if anyone can help me - I am trying to assist my mom with financial matters following the death of my dad.
The situation is:
· When dad died his insurance paid off the existing mortgage, so mom owns the house outright (worth ~£150k if I'm being pessimistic).
· She has debts of £42k of which £30k is an IVA which she’s still paying, rest is on a credit card.
· She is currently unemployed and receives an income of £1100 a month which is my dads pension.
· Her only outgoings are the cost of living (~£600 a month), of which ~£100 is towards her IVA.
She wants to:
· Capital raise £42k on the unencumbered property to pay off her debts (IVA + credit card)
· Take a 5 year fixed residential product (without a fee).
What do you think the chances are on the face of it?
Thank you for any help you can offer.
James.
0
Comments
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Oh and I realise now I have spelt unencumbered wrong!0
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Sell the property and start afresh. Seems the only advice given the situation.0
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As your mother is in an IVA a mortgage will not be possible and her income is not sufficient to support the borrowing required. Sorry.0
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You may be able to get a secured loan on the property. How much is your mother paying per month on the IVA and the credit card ?I am a Mortgage Advisor. You should note that this site does not check my status as a Mortgage adviser, so you need to take my word for it. This signature is here as i follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldnt be seen as financial advice.0
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Given the circumstances i would back this up, why not sell and rent a nice property, your mum will have a nice pot of money a decent pension and nothing else to worry about.As your mother is in an IVA a mortgage will not be possible and her income is not sufficient to support the borrowing required. Sorry.I am a Mortgage Advisor. You should note that this site does not check my status as a Mortgage adviser, so you need to take my word for it. This signature is here as i follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldnt be seen as financial advice.0 -
Your mother will find it very difficult to get a mortgage with the IVA, her pension income may have been sufficient to get a small mortgage, but the IVA kills it.
How old is your mother? as potentially an equity release mortgage may be an option.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What are the terms of the IVA it might be better to just keep that going.
I though these were max 5y so £100pm is £6k for a £30k debt.0
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