Advice please- bank chasing ill mother

Anglichanin

A few years ago, my mother's small business was struggling and she signed a charge (is it known as a personal guarantee?) against her house to borrow a large sum with a major bank to keep things going and paying the wages. The business later went under and she was left with the debt. The stress drove her to a heart attack, in January 2010. She is now back at work elsewhere but her health not good and the chest pains resurfacing.
The bank have contacted her a few times over the intervening few years and have now issued what seems like a final demand for a sum well over 100k.
I have no qualms that she owes the money, even though she tells me that she was pretty much coerced into signing the guarantee by the bank.
Her mortgage is with a different bank and apparently they have first charge against the house. The equity she has in the house is greater than the amount of the debt, though she would struggle to meet any increased mortgage payments. At 59 she would like to retire due to ill health but cannot do so in her current situation.
I am not for one minute saying that she should not pay back her debt, but I am wondering where we can turn, and what we can do, to help us out of this situation. If anyone has any advice, or suggestion of people to turn to, I would be very grateful.
Thanks.

Tixy

Hi

If she has significant equity - would she be in a position to sell up and downsize to release a chunk to pay off the debt?

Does she still owe a lot on her mortgage? aside from this business debt - will the mortgage be repaid before she retires anyway?

Anglichanin

Thanks very much for the quick reply.

She would be able to sell up and downsize, though of course that would be traumatic. I am not sure that the bank which is chasing her can force her to do so as the different bank with whom she holds the mortgage have first charge. She would rather come to an agreement with the bank to whom she owes the debt, stay where she is, and pay an increased mortgage, but I do accept that downsizing may be the only option in the end.

If she retires at 65 (in six years' time) then I believe the mortgage will have been paid off at around the retirement date.