Re-Newing mortgage after death of Dad

louise287

Hi, apologies in advance for lack of information I am new to all of this and just posting to get some ideas.

We lost our Dad in Sep 2011, we could not find a life insurance and still haven't to this day which was very strange for my Dad as he was always very organised with that kind of thing. We have come to the conclusion now that he must have cancelled it.

Nevertheless, we have an interest only mortgage which comes to an end in roughly 7-8 years. We have been told by our mortgage company, who have also got in touch with other companies, that we are basically screwed because my Mum will not be able to remortgage when we need to as she is too old, although the mortgage is in her name. She has a bad credit file.

I live here, I am 25 years old, I also have a terrible credit file, but will be debt free in 51/2 years. Can anybody tell me what are the chances of me being able to take over the mortgage? We would basically need a loan for around 50,000 to pay the mortgage, my mums name would stay on the mortgage but I would take over.

Is this a likely scenario or am I totally out of my depth here?

Any help would be much appreciated. We do not want to end up losing our family home we've had for 30+ years.

I also have an older sister and 3 brothers. Theyre older but have their own responsibilities.

Thrugelmir

Given you've time on your side. Your priority needs to be to clear your debts. Maintain a spotless credit file from now on. This should enable you to find an option before the mortgage term ends.

Once debt free perhaps consider paying your mother rent. This money could be used to pay down the mortgage while matters are resolved on a formal basis.

louise287

I already do pay my mum rent. Me, my mum and brother all split the mortgage at the moment which is quite low.

My main priority now is getting my debt cleared and hopefully being able to take over the mortgage on the house.

Another question, once you have cleared your debt can you pay to have your credit file wiped clean? How much is this roughly?

getmore4less

If the mortgage payment is low then the best option is to start overpaying/saving to pay it off rather than wait till you can potentially take on a mortgage.

If there was life cover it would probably show up on the bank statements as one of the regular payments.

Thrugelmir

Only time will clear your credit history. As data remains on file for 6 years. So prioritise the order in which you clear your debts. Also close any accounts that are no longer required once clear.

noh

getmore4less wrote: »

If the mortgage payment is low then the best option is to start overpaying/saving to pay it off rather than wait till you can potentially take on a mortgage.

If there was life cover it would probably show up on the bank statements as one of the regular payments.

Yes.
If each of them upped their payment by £200 per month the mortgage would be gone in less than 7 years.
Any repayment of capital that is possible is the best way to go.