I need real advice please

Financially_Scared...

In October 2007 I could afford to pay a mortgage but not get a mortgage on my own , so my parents re-mortgaged their home with a 7 year term, giving me £125,000 cash to buy my house outright. The 3 of us all thought that:-

a) my career would take off meaning I would be able to take more mortgage on my own home within the time
b) Houses prices would remain constant, if not increase
c) I would have a partner that would also help me to get a mortgage on our home.

I did take out a mortgage on my house, repaying Mum and Dad £60,000, leaving me £65,000 debt on their house.

A & C have both happened. B did not, and now my home is worth £40,000 less than the debt I have to my parents. I can top up my mortgage for another £20,000 but that still leaves a shortfall of £45,000.

The term on Mum and Dad's house is up in Sep 2014, and so we find ourselves with a massive shortfall.

I know its a really long shot but wondered if anyone has any experience of this? The last thing on earth I want to happen is jeopardise my parents home. My husband and I are both working 2 jobs, saving all we can, but any ideas on finding more money?

I would really appreciate any advice that you may have, even if its other people that we can talk to to get some guidance?

Thanks a lot, and I am sorry for such a long post!

Hayley

GMS

Can your parents not extend the term of their mortgage?

ACG

Extending the term or your parents moving the mortgage elsewhere are the only options really that i can think of.

theoretica

Am I right that the mortgage your parents took out was interest only and you expect to be responsible for a £45k shortfall in just under 2 years time?

In two years time house prices may well have risen to enable you to add more than the current £20k to your own mortgage.
How much can you save in 2 years?
How much will your bank lend you unsecured (and could you afford the repayments?)

As mentioned above there may be a shortfall left on your parents house, but it will be possible to arrange to pay it off as a repayment mortgage, they will not be made to sell up.

Financially_Scared...

Thank you for such considered replies. We tried to extend the term, but because the bank didn't think we had a genuine exit plan, if we got the extension, they declined it.

Yes it is interest free only at the moment. My dads 62, mums 58 so moving the lender will probably be impossible? My husband and I are both working 2 jobs, think we'll be able to save at least £25k in the 2 years, fingers crossed.

We were just hoping that there might be something we hadn't thought of. Maybe an unsecured loan could help?

Thank you all so much

Hayley