My retired mothers interest only mortgage expired - please help! :(

Thrugelmir

TLOR wrote: »

I just want to know what normally happens in these circumstances with regards to the bank in case they try to mislead her! Does anybody know how long the bank normally gives, I have read articles that suggest they are supposed to act with restraint and repossession is a last resort but how long are we talking, weeks, months? Is there any guidelines I can compare their response too?

Fact. The onus is on the borrower to repay the money. There is a contractual obligation. Mortgages last 25 years so plenty of time to plan.

So whatever the lender offers is entirely discretionary.

opinions4u

TLOR wrote: »

My mother is indeed on £90 per week, not sure why anyone would lie about such a thing!? :S

I'm not sure why you wouldn't have mentioned your father's existence in your original post.

A reasonable deduction from your first post is that Mum has £15 a week to pay or council tax, heating and food.

Make sure she doesn't withhold key information when she talks to her lender.

TLOR

opinions4u wrote: »

I'm not sure why you wouldn't have mentioned your father's existence in your original post.

A reasonable deduction from your first post is that Mum has £15 a week to pay or council tax, heating and food.

Make sure she doesn't withhold key information when she talks to her lender.

because the mortgage is in my mothers name and there is zero possibility my fathers income could have any impact on the options available to her due to his circumstances.

The information I have asked for is specifically regarding the procedure the bank will follow given the circumstances and given they will only be able to take into account my mothers income that is the figure I provided.

TLOR

Thrugelmir wrote: »

Fact. The onus is on the borrower to repay the money. There is a contractual obligation. Mortgages last 25 years so plenty of time to plan.

So whatever the lender offers is entirely discretionary.

I agree and I have explained that to here (although it was a 5 year remortgage she still had plenty of time). Problem is she didn't understand and she thought it would revert to the SVB, I know, I know :S

Given the recent news about the potential interest only time bomb I would have thought this would have been a not too uncommon occurrence, has anyone been involved in a similar situation or know of anybody that has and can comment on what action the bank took?

Thanks again

holly_hobby

Sale and rent back is not permissible with mge lenders - thats not what I suggested - I suggested a lifetime mortgage arrangement, moving to alender with an extended max age (subject to stauts) or selling up and going into shared ownership, or rented accomodation.

Mum can't sell the property to you and remain resident post completion - as THAT technically under a lenders remit IS a sale and rent back agreement (lending prohibited by lenders), and nevertheless furthermore presents possessionary issues for the lender as vacant possession can't be achieved - and thats why it is not a possible solution.

Her lender may give her a max temp extension of upto 5 yrs - subject to discrection and status - but this is not gted nor an obligation of the lender (bearing in mind Mums situation is in reality down to her own mis-management of her mortgage, and knowing for over 2 decades that she had an IO mge without any means or plan of repaying at the end of the mge term).

You keep asking what the lender will do for Mum, and although we can give you info about the industry view in general, the short answer is only Mums lender can tell you what their action will be in respect to Mums individual case.

This is all a bit last minute.com, and because of such Mum has left herself in a very vunerable position - and actually speaking to the lender instead of bouncing about on a forum for "what if's", is what Mum should be doing right now.

Wish her well ...

Hope this helps

Holly

ruggedtoast

What is the value of the property?

TLOR

ruggedtoast wrote: »

What is the value of the property?

Its around 100k with 80ish owed

TLOR

holly_hobby wrote: »

Sale and rent back is not permissible with mge lenders - thats not what I suggested - I suggested a lifetime mortgage arrangement, moving to a lender with an extended max age (subject to status) or selling up and going into shared ownership, or rented accommodation.

Mum can't sell the property to you and remain resident post completion - as THAT technically under a lenders remit IS a sale and rent back agreement (lending prohibited by lenders), and nevertheless furthermore presents possessionary issues for the lender as vacant possession can't be achieved - and thats why it is not a possible solution.

Her lender may give her a max temp extension of upto 5 yrs - subject to discretion and status - but this is not gted nor an obligation of the lender (bearing in mind Mums situation is in reality down to her own mis-management of her mortgage, and knowing for over 2 decades that she had an IO mge without any means or plan of repaying at the end of the mge term).

You keep asking what the lender will do for Mum, and although we can give you info about the industry view in general, the short answer is only Mums lender can tell you what their action will be in respect to Mums individual case.

This is all a bit last minute.com, and because of such Mum has left herself in a very vulnerable position - and actually speaking to the lender instead of bouncing about on a forum for "what if's", is what Mum should be doing right now.

Wish her well ...

Hope this helps

Holly

Hi Holly,

Thanks for taking the time to reply, I agree with almost everything thing you said and mum was in the bank / estate agents / social housing at 9am this morning, I will provide an update for the benefit of others when I speak to her and finish work.

My Fiance is considering purchasing the property off my mother, are you saying that this is illegal if my mother than decides to live there and rent it? What if my Fiance also lives in the property and allows my mother (and father of course) to stay?

There are many reasons why it was prudent for me to also seek advise on what options she can expect to receive from the bank as I am sure you are aware.

Fingers crossed it is good news.

holly_hobby

TLOR wrote: »

My Fiance is considering purchasing the property off my mother, are you saying that this is illegal if my mother than decides to live there and rent it? What if my Fiance also lives in the property and allows my mother (and father of course) to stay?

Doesn't matter whom buys it, if the vendor is to remain resident post completion and a mge is reqd, the lender won't entertain it, as I say due to vacant possession and possessionary issues (ie the lender having difficulty in obtaining the property under a court order as a result of mge default).

Hope this helps

Holly

ruggedtoast

TLOR wrote: »

Its around 100k with 80ish owed

Not much equity then, if she sold she'd be only just above the £16k savings you can have and still claim benefits.