Elder Sister Mortgage Mess

bazz13

I was asked 12 months ago by my sister, who is now 84 years of age, to asisst her with some financial matters. When going through her paperwork to my horror I found that what I thought she was paying as an endowment to pay off her mortgage on the 28th August of 2014 was in actual fact only a whole of life policy, which she had been sold in August of 1989. She has been paying the building society on an interest only basis. I have been through the process of complaint ie miss selling with the F.S.C.S and also the appeal procedure and have been refused any compensation. I have kept the building society she is with informed of all the details and procedures, they did extend the date for repayment up to 21st December 2014, and I have kept them informed every step of the way. I have also gone through a budget plan with them and by their calculations the amount she could afford to pay changing to a repayment plan would take her too long to pay off and they seem unwilling to accept this. I was hoping that someone may be able to help with some advice now on where to go or what to do from here so that she would be able to stay in the house without having to sell up. I know that an Equity Release would be a possibility but I was hoping for another alternative. If we have to go down that route does anyone have a decent known provider ? Thank you in advance for any replies. I will also apologise in advance for any seemingly slow response from me as we do not have WiFi at home so I have to use the local library or friends.

Elsbells21

I'm afraid I don't have any advice for you as such, and this may have been something you have already done - but have you called the Citizen's Advice Bureau? They might be able to offer some guidance.

I'm sorry you're in such a horrible situation!

themull1

Did she get a mortgage statement every year? would this have shown that it was interest only?

gizmo111

themull1 wrote: »

Did she get a mortgage statement every year? would this have shown that it was interest only?

She knew it was IO - she thought she had an endowment to pay it off not a tem life policy.

Thrugelmir

Unfortunately you need to accept that difficult decisions need to be made. There's no easy solution I feel.

themull1

Is there much left on the mortgage?

PlymouthMaid

I always thought that if you had an interest only mortgage then the mortgage company checked that there was a repayment vehicle in place. Did your sister never have an endowment plan in place?

themull1

I don't think that the mortgage companies were so stringent 25 years ago regarding the repayment vehicle when handing out loads of interest only mortgages.

PlymouthMaid

They certainly were when I took mine out in 1990.

tanith

themull1 wrote: »

I don't think that the mortgage companies were so stringent 25 years ago regarding the repayment vehicle when handing out loads of interest only mortgages.

They certainly were in 1993 when we took out our endowment we couldn't get the mortgage without it.