Help please - ways to reduce parents' payments

Mortgage-Q

I'm annoyed at my parents because I think they have a mortgage with a high monthly payment.

I think the repayment is about £950 - far too much I think for the house.

The only way I know of paying less is to remortgage but I don't think they'll qualify anywhere.

Are they stuck with this or are there other ways to reduce their payments without leading to arrears (as in not an arrangement to pay etc)? Can I call the lender and try to get them to "change" the monthly payment figure?

Please help.

kingstreet

The monthly payment is a function of the mortgage amount, mortgage term and mortgage rate.

Presumably you can't alter the amount, so the term and the rate are the only variables you can influence.

Ask the lender what rate options there might be and what could be done with the term. Same goes for a possible remortgage.

Sadly, as this is your parents' mortgage, proximity of their retirements may block an increase in the term.

Only other option, short-term alteration to interest-only may have negative impact, as you mentioned;-

as in not an arrangement to pay etc

happycamel_2

Is it the interest rate that you think is too high or the cash value of the payment. If the latter you are barking up the wrong tree. The monthly figure is dependent on the value borrowed (which you can't change) the term (which is their choice but what they are offered will be impacted by their ages) and the interest rate applied. This assumes it is a repayment mortgage.

If they've borrowed a lot on a short term, so that it is paid off by their expected retirement date then the monthly payments may seem high but extending the term would result in greater interest being paid overall and the possibility of them needing to make mortgage payments from their pensions.

If its the interest rate that's bothering you then, again, it will depend on their LTV, their credit history, whether they gone fixed or tracker etc. Why do you think they'd be unable to obtain a mortgage elsewhere?

TrickyDicky101

Why are you annoyed at your parents? It's not your mortgage.

How much of your parents' mortgage is outstanding, how long is the term, what's the rate, who's it with, what are their ages and employment/income status and how much is the house worth?

Mortgage-Q

Thanks for the prompt responses.

Happycamel, I think they wont get a mortgage elsewhere because they haven't maintained the best credit history. I'm more concerned about the monthly payment not the interest. I'm not sure what the interest is, but I doubt they got the best either.

Tricky, I'm annoyed because it didn't seem like they paid attention to how high the repayment figure would be.

They bought this house recently about 6yrs so there is still a substantial left to pay.

Its a 25 year term.

I guess their age (early 50s) plays a part - which I didn't think about.

Not a lot of options as I thought.

kingstreet

Are they now on the lender's standard variable rate? As TD asked, which lender?

Mortgage-Q

Sorry, yes they are on the standard rate - lender is Alliance and Leicester.

Does this make a difference?

ILW

When you say the repayment is too high, compared to what?

kingstreet

Mortgage-Q wrote: »

Sorry, yes they are on the standard rate - lender is Alliance and Leicester.

Does this make a difference?

One of the questions to ask is "do you have a customer retention product they could switch to which is lower than the standard variable rate they are paying?"

R_P_W

You have not really provided any useful information!

£950 payment.....and so what? Are they having problems paying it?

What is the house valued at? How much have they left of the mortgage?

Mortgage-Q

RPW

Yes they are struggling to pay it, which is why I was hoping to have it reduced on a longer term basis than an arrangement to pay.

The house valued on zoopla at £146,000
They bought it for £161,000
They have about £140,000 left to pay.

Do you need any more info?