Morgatge advise for elderly single parent

Kpk

Struggling here and becoming a big worry the closer retirement comes in 2 years.

Mortgage offered, and accepted, into a retirement age of 74 with no proof of pension (only entitled to state pension). Mortgage applied for when 54 and because of wages/income couldn't offer a 5/10/15 year mortgage because monthly payments would have been too high. So they have got round this by offering a 20 year mortgage that takes my single father 9 years past his retirement age.

6 years after he obtained the mortgage they have also offered to consolidate additional debts which have also prolonged his debts past his retirement age.

Although he ultimately made the decision to accept the decision I feel this shouldn't have been offered, absolutely no way they took into consideration his affordability for the duration of the mortgage / loan attached to the mortgage.

If he was unable to to guarantee payment for the 1st 9 years of the mortgage they wouldn't have offered him I so because its at the end of the mortgage it's ok is it?

Due to the nature of his work (heavy lifting) they may choose to 'retire' him at 65

We're not in a position financially to help or buy the house and for him to lose the house he's lived in for over 50 years would be devastating.

If anybody has similar experiences or advise on how they dealt with the issues it would be greatly appreciated. Not looking to claim or anything like that just ideas on a solution(s) or thoughts on the lending process etc

opinions4u

Sounds like he would have been in a worse mess if he hadn't consolidated the unsecured debts.

You can complain to the lender, but in what way has he lost out? They made his payments more affordable at a time when he was in trouble of his own making. If they uphold a complaint they need to put him back in the position he would have even in had they not done what they did. It sounds like that position was an expensive mess.

Selling up, clearing the debt and renting is the most likely outcome here. Start preparing him for it.

Dave_Ham

I am not sure what you are after, as we know not nearly enough to comment.

Had your Father not got the mortgage, you would have had to tackle this issue x years ago. I for one find ignorance an unacceptable reason for getting into this type of predicament.

Still, would like to think you have had this conversation and are moving forward with solutions.

How much equity are you talking about?

I think selling the place is going to be inevitable, unless other family member can help. Given the fact the home as been in the family for 50 years, this should really not be an issue now when coming close to retirement.

Hopefully it is just a small mortgage and that yourself and family members can get involved.

Maybe he could take in a lodger, move in with family and rent the place out for a period?

Does he receive a lump sum as part of his pension provision, is this likely to be enough?

kingstreet

Kpk wrote: »

6 years after he obtained the mortgage they have also offered to consolidate additional debts which have also prolonged his debts past his retirement age

Although it may not help too much now, the best route would have been to use the money saved on the previously high-rated unsecured debt to overpay the mortgage.

Unfortunately, too many people consolidate debt then use the savings they are making to subsidise their continued lifestyle, rather than to get the debt repaid quicker.

Did he seek formal advice, getting recommendations, or did he simply pitch up at the lender's door and accepted an "information-only" service? I'd be surprised if a properly authorised and regulated broker wrote a mortgage past retirement without researching and documenting how the mortgage would be funded after retirement.