Nationwide to add late husbands loan & c/card balance to mortgage,advise please.

getmore4less

SouthCoast wrote: »

As #2.

The Nationwide mortgage will include an "All monies charge".

This is not relevent,

This is nothing to do with the existing mortgage.

What they are doing is offering for the 3 debts(mortgage, loan and CC) to be paid off by a new mortgage on the asset to release it from the estate.

The alternative would be to sell and pay off the debts.

Quite is possibly a very generous offer since the OP may not meet current lending criteria and thye are under no obligation to offer a mortgage.

It is not clear what the full details of the offer are or the value of the house , but if the OP wants to stay in the house then some arrangment will need to be in place to pay off the debts other than selling.

I think one option if nationwide are agreeable may be offer the OP a very long term/life time mortgage, interest only if possible .

That would secure the house not increase the debts further and still give Nationwide their money back later.


There are other issues if family are helping, but without knowing what the plans are it is difficult to comment.

Hanky_Panky

getmore4less wrote: »

This is not relevent,

This is nothing to do with the existing mortgage.

What they are doing is offering for the 3 debts(mortgage, loan and CC) to be paid off by a new mortgage on the asset to release it from the estate.

I don't read it that way as the OP states 'However, with my son and daughter in laws help we were hoping to be able to repay the mortgage. Nationwide have now contacted me saying they will add the loan balance and credit card balance to the mortgage which makes it almost impossible for me to repay as I am almost 68 years of age.'

So it looks like she is trying to get rid of all the debt.

Sophie44

Hanky_Panky wrote: »

I don't read it that way as the OP states 'However, with my son and daughter in laws help we were hoping to be able to repay the mortgage. Nationwide have now contacted me saying they will add the loan balance and credit card balance to the mortgage which makes it almost impossible for me to repay as I am almost 68 years of age.'

So it looks like she is trying to get rid of all the debt.[/QUOTE

Hanky, you are quite right. I am hoping to pay off all of the debt to Nationwide but when I initially went into my local branch to inform them of my husband's death, with death certificate etc., the woman then said they might be able to offer me only a 7 year term, which is why my son offered to help with monthly repayments as my personal finances don't add up to much, I am on pension credit now. So, the added loan and cc debt being added would only cause more hardship. Thanks so much for all your advice, it mean a lot at such a worrying time. ]

Sophie44

The_J wrote: »

The house will be the asset and like a profit and loss sheet they will work off that.

Do check for life assurance, there may be old policies lying around but I expect, at your ages, it probably expired. It's a shame because this is exactly the type of situation it exists for.

J - thanks so much for your help. I have checked and unfortunately there doesn't seem to be any life assurance policies available, but I'll keep on looking for anything that might ease the situation, thanks again.

getmore4less

Hanky_Panky wrote: »

I don't read it that way as the OP states 'However, with my son and daughter in laws help we were hoping to be able to repay the mortgage. Nationwide have now contacted me saying they will add the loan balance and credit card balance to the mortgage which makes it almost impossible for me to repay as I am almost 68 years of age.'

So it looks like she is trying to get rid of all the debt.

But if the OP can't raise the money to pay off all the debts then the assets get sold or the other option is to take out a new mortgage on the property for any shortfall.

Sophie44 wrote: »

Hanky, you are quite right. I am hoping to pay off all of the debt to Nationwide but when I initially went into my local branch to inform them of my husband's death, with death certificate etc., the woman then said they might be able to offer me only a 7 year term, which is why my son offered to help with monthly repayments as my personal finances don't add up to much, I am on pension credit now. So, the added loan and cc debt being added would only cause more hardship. Thanks so much for all your advice, it mean a lot at such a worrying time. ]

I think you need to be clear you are not taking over the mortgage you are getting a new one to cover any shortfall in the debts the estate has.

They are not adding the debt to the existing mortgage they are offering to let you borrow more on the new mortgage to pay them off so you can keep the house.

All debt effectivaly becomes secured against assets in an estate on death, things like charges just detemine the pecking order for the creditors.

getmore4less

It might be too late, but it might be worth getting advice from somewhere like CAB to see if this is still possible.

The problem now is that Nationwide have an idea of what the situation is.

As executor and benifitiary you could take your time on this so could have tried to put in place delaying tactics.

You probably should have asked nationwide to freeze the loan and CC suspending interest.

Also trying to get them to suspend interest on the mortgage but reluctantly agree to pay the interest and convert to interest only pending a sale/remortgage.

If you can get the payments suspended that will give you some breathing space.

Nationwide won't like it but they have probably pressured/bullied you to do things quicker than they realy needed, it is only a few weeks, if solicitors were doing this they would probably be waiting over a year.

There is not a lot you can do untill probate is granted and you can take your time over this if you get finances stabalized.

You can then think about the options and try to make plans.

They(NW) will probably try to rush you into a new mortgage and get the estate finalized.

even if they can securitize the loan and CC and won't freeze the interest they should at least reduce the rate to the mortgage rate.

Remember there is another delay tactic you can do which is to decide to sell, this can take a long time if you do it right, in the mean time you sort out finance and stay.

Idealy you want an affordable mortgage deal on the table so you can stay in the house.

I think you could do with some help negotiating with NW on the estate side and on the potential new mortgage. Not sure where you can get this from one place CAB is worth a try. maybe Age related charities are more used to dealing with these issues.

Sophie44

getmore4less wrote: »

It might be too late, but it might be worth getting advice from somewhere like CAB to see if this is still possible.

The problem now is that Nationwide have an idea of what the situation is.

As executor and benifitiary you could take your time on this so could have tried to put in place delaying tactics.

You probably should have asked nationwide to freeze the loan and CC suspending interest.

Also trying to get them to suspend interest on the mortgage but reluctantly agree to pay the interest and convert to interest only pending a sale/remortgage.

If you can get the payments suspended that will give you some breathing space.

Nationwide won't like it but they have probably pressured/bullied you to do things quicker than they realy needed, it is only a few weeks, if solicitors were doing this they would probably be waiting over a year.

There is not a lot you can do untill probate is granted and you can take your time over this if you get finances stabalized.

You can then think about the options and try to make plans.

They(NW) will probably try to rush you into a new mortgage and get the estate finalized.

even if they can securitize the loan and CC and won't freeze the interest they should at least reduce the rate to the mortgage rate.

Remember there is another delay tactic you can do which is to decide to sell, this can take a long time if you do it right, in the mean time you sort out finance and stay.

Idealy you want an affordable mortgage deal on the table so you can stay in the house.

I think you could do with some help negotiating with NW on the estate side and on the potential new mortgage. Not sure where you can get this from one place CAB is worth a try. maybe Age related charities are more used to dealing with these issues.

Oh thank you so much for your advice, you have certainly given me lots to think about and ideas as to how I can at least gather some time to get things sorted. Nationwide have frozen the mortage etc., until end of August, and I sent off the Probate forms only yesterday so I still have a little while yet. I have also learned that I can apply to the DWP for a form which I take to the Nationwide for them to complete and the DWP will assist towards just the interest payments for a while, not sure how true this is but I will certainly check it out.....thanks so much again.

getmore4less

if they have frozen interest on all the accounts then thats a good start.

there is help from DWP for mortgage,

Think carefully before sending off the forms it is not clear yet what the mortgage will be

Once the probate come back to you there will be the interview stage, that can also be delayed.

Give yourself time everyone else want YOU to deal with things immediately and will take ages themselves to do anything.

Thrugelmir

getmore4less wrote: »

As executor and benifitiary you could take your time on this so could have tried to put in place delaying tactics.

Being an Executor carries legal responsibilities. So care must be taken.

getmore4less

Thrugelmir wrote: »

Being an Executor carries legal responsibilities. So care must be taken.

Care, thats another one I forgot, that takes time also,

checking everything, double checking, asking for advice, checking again, reading up the guides, checking again, making sure you have gone though ALL the laye husbands paperwork to make sure there are no other debts lurking.

Was he still working?
That last bit is quite important especialy as self employed the tax returns for the last few years might need reviewing as well as the current year which will need to be done or they(HMRC) may happy with the r27.

Nationwide would love you to have new mortgage in place ASAP just in case there is something else that crops up.

Good stready progress is all that is needed, there is what is known as the executors year so plenty of time to still stay with in that and even that is not a hard limit for estates.

If the OH was still in business or stopped recently and/or you are not 100% sure on his finances you might want to look at statutory notices.


Itis only been a couple of months and at difficult times like this people need thinking time, I just get the feeling that NW might be making you rush a bit quicker than you need to.

The other side is wanting to get things sorted ASAP to close a chapter but balance is needed so things get thought through.

(I am 18month into sorting out an estate solicitors are not in a hurry to do anything)