Need to help elderly parents - Secrets out!!

Bella54

Hello everyone,

I am looking for some help and guidance.

My parents are both 70. I have just found out that they have two secured loans of their property. Taken out at the grand age of 62.
First one taken out in 2006(15 years) with Swift. Borrowed 45K and have been paying monthly since then and still owe 44K.
Second one with Lloyds taken out in 2007 (10 years), Borrowed 10k and still owe 7.5K.

I have no idea what they borrowed the money for though feel it may have been to pay credit cards etc.

I am more concerned about how they are going to afford to pay this back. They both have small pensions and are already in arrears with these though not go to the stage yet where court action has been mentioned.

My Sister and I hope to be able to help in some way though need to collect all the information first. So far we have sent of a SAR to both companies and are looking for PPI and charges.

After this we will ask for redemption figures and see how much this is.

Just looking for information really. Are we going about this is the right way? is there anything else we should be doing? Anyone have anything interesting they can tell me about Swift 1st.

Both of my parents are pretty clueless and don't realise how close they are to becoming homeless.

I have spoken to Step change about equity release and its a no go. House is worth in the region of 80K

Thanks in advance to anyone who replies.

cynicalgit_2

If both yourself and your Sister are future beneficiaries of your parents estate then is it possible for you both to find the money to repay some if not all of the debt?
The Loan Cos could perhaps come to a reduced early settlement or they might be able to freeze interest and take lower repayments.

cynicalgit_2

If you could possibly purchase the property from them then they could stay in their home and perhaps pay you and your sister rent.

19lottie82

cynicalgit wrote: »

If you could possibly purchase the property from them then they could stay in their home and perhaps pay you and your sister rent.

This is TERRIBLE advice, please IGNORE. (google deprivation of assets)

marathonic

19lottie82 wrote: »

This is TERRIBLE advice, please IGNORE. (google deprivation of assets)

Is it as clear cut as 'straight out bad advice' in this case?

With £51,500 on top of the mortgage, if any, secured against an £80k house, the parents have very little assets to be deprived of.

I thought deprivation of assets was related to, for example, mortgage free parents selling their homes to children at below market prices to avoid inheritance tax. This is a totally different situation

DevCoder

19lottie82 wrote: »

This is TERRIBLE advice, please IGNORE. (google deprivation of assets)

Agreed, the only way for the purchase to even happen would be for the second charges to be cleared which would mean repayment of the loans

cynicalgit_2

19lottie82 wrote: »

This is TERRIBLE advice, please IGNORE. (google deprivation of assets)

Suggest something positive then?

Bella54

Thank you all for the replies.

It is something we will consider though do think that they will have to 'sign over' the house otherwise what's to stop them getting another loan. To be honest I am not sure what they do with the money and think they have foolishly turned credit card debt into secured debt.

Depravation of assets is a worry though when I think of their age and the possibility of needing care in the future.

We both have mortgages and children. we also both have sick partners.

I have also been thinking about the possibility of PPI on these loans and that maybe they have been mis sold in some way. A long shot I know but worth looking into. We need to wait until the information comes back however been told that Swift wont negotiate in any way.

ViolaLass

After 7 years, they still owe most of the money to Swift? How? Did they extend the loan?

cynicalgit_2

If the Loancos could just freeze the interest and your parents have an arrangement that perhaps gives you time to find a longer term solution.
It must be very worrying for you and your family.
I assume that they wouldnt want to sell up and rent?
Whatever happens you don't want a repossession.
I know how easy it is to consolidate unsecured debt into secured debt, it seems like a good idea at the time.
Certainly a mis-sold ppi could be a good way of reducing the debt.

ViolaLass

Also, have they racked up any more credit card debt? i.e. is the original problem solved?