Mortgage advice / help for our family - can you help?

Little_Pickle

Hi all,
I need some advice from you lovely lot if possible?

My folks are in difficulty and have come to my husband and myself asking if we could take on their mortgage.
They estimate that if they continue the same way as now they will have to sell the house by this time next year.
This is something none of us want to happen.
They have tried asking for interest only mortgage for a short period to give them some breathing space but to no avail.
Their mortgage is currently £1,100 per month and they also have other loans / credit cards.
They would pay us ‘rent’ but the house would be in our name.
Any ideas of what options we have?
Thanks guys
LP
xox

Dave_Ham

Hi there,

There are loads of other questions we would really need answers to here, so much so that you may need professional advice where they can have all of the information to hand.

Ok, just to list a few considerations for you as would hate for you to ask for help and contribute nothing.

Consider firstly their ages and either income or income into retirement and what this looks like. Combine this with their loan value, remaining term and current product. Already there could be solutions within this.

You cannot simply take over the mortgage, without buying the property from them (whole set of other variables) and need to consider solicitors fees and potentially stamp duty (depending on value in first set of considerations)

Then looking at your considerations, you need to look at credit score, employment, own financial commitments, future commitments, being financially linked with parents again who now may have adverse credit ratings - the list unfortunately goes on..

You are trying to help your parents, good on you and will try and answer any questions we can on here but you may need to get separate formalised advice as this is obviously a huge lifetime call...

Will help where I can...

Little_Pickle

Thanks so much Dave.

We realise that this is going to be a HUGE change for us all. Buying the house from our folks or adding us to the deeds (however it can work legally of course) is never an easy thing.

For my folks to come to my husband and I for help shows how desperate they must be.

They have never really been money 'savvy' and seem to live hand to mouth. Now they have opened the gates to 'anything' as my father said, I am now able to put in place a bit of order for them.

I'll be looking into transferring the credit card to 0% if I can and looking at utilities and budgets for them. I don't think they have ever looked at utilities... something we do very often.

Also, as small as it might be, I'm going to help them to sell some items to raise some cash.

We’ll be getting mortgage advice as soon as possible... just wanted to understand the various options we might have.
Thanks again!
LP