Urgent advice required

raycharles999

All,

I am currently circa £50k in debt from a mixture of credit cards & loans and am after some advice on a possible way of working through this.

My parents currently have around £90k mortgage outstanding on their home, say it's worth around £220,000.00; is there any way that they could sign over their home to me to be able to release funds to me and effectively make me the owner with my debts tied up in the house?

I am probably talking rubbish here, but i'm really clueless and any advice would be welcomed.

Cheers,

Ray

sheilaluc

Do you parents know about your debt? why would they hand over their to you and then you could sell it and they would be homeless.

May be better to ask about dealing with your debts and leave your parents out if it

raycharles999

of course they do, this is something we have discussed together.
With all due respect, i'm not after any moral advice, sometimes families stick together through thick and thin and trust each other.

Thanks.

happy_bunny_2

Maybe post an SOA so folks get a full picture before advising:
https://forums.moneysavingexpert.com/discussion/562271

sheilaluc

I didn't mean to be moral, not sure how things stood.

Are you parents able to remortage the house to pay off your debts and then you pay part of the mortgage?

raycharles999

Wow, didn't realise there were so many trolls on here.

Sheila, thanks.

Well that was sort of the idea, re-mortgage a proportion of it with a view to me then paying the mortgage off with them, in essence me part owning....?

kloana

I have no idea if this is/isn't possible, yet it'd be hugely complicated (if possible), given the fact that there's a 90k mortgage outstanding.

However, that aside, this is your parents' home. Presumably they've worked very hard for it, and have exercised some degree of prudence to get it, and (so far) keep it.

I appreciate you're not here for 'moral' advice, but involving your parents in something like this is a bad idea. They may want to help you, as their child, but we're talking the loss of a house here, and/or the gain of tens of thousands of pounds worth of debt.

There are a range of options available which need impact upon nobody but you - from better budgeting, to outright insolvency.

happy_bunny_2

If you post your SOA, people should be able to give you options.

HB

theoretica

Your parents could lend you the money to pay off your debts. You would then pay them back.

The fact that they may get the money by remortgaging their home does not mean that you should own part of their home at the end of this. It does mean that their home is at risk so, as pointed out, this should be thought about very carefully.

Should they choose to give you part ownership of their home that would be a separate matter, and might well upset the mortgage company.

lokisgirl

Regardless of any moral aspects, the first rule of debt repayment is don't turn unsecured debt into secured debt because it puts your home at risk. Nobody here would advise you to add your current debts to a mortgage if it was your own house, the fact it's your parents house just makes it a doubly bad idea.

MEM62

Any moral issues aside and without intending to be judgemental, securing these debts against your parents property would be risky at least. You level of debt suggests that you may not have good control on your finances and therefore offering up their house as guarantee for your debt is certainly not a risk that I would be willing to accept - even without looking into the complications of shared ownership and mortgages.

It is understandable that you mum & dad want to help. If they are still happy with the situation them they could take equity out of the house and clear your debts on the basis that you will pay them back. But they would have to bear in mind that recovering their money is dependent on you getting to grip with your finances and that they may not get their money back.

I think the better option, for them and for you, would be for you to seek advice on clearing your debts in your own. There is a lot of advice available on these forums to assist you in doing so.