Is there a soloution?

Showme

My parents have an interest only mortgage on the family home which is due to end soon but with the house on the market and little sign of any buyers I'm starting to get nervous about what happens at the end of the term.


The original plan was that I would sell my property and move back home (done) and they would sell theirs and we would pool resources to buy somewhere with a reduced mortgage.


Dad - 68 - pension £40k
Mum - 63 - pension £20k
Me - 33 - earning £27.5k basic plus commission (although no commission this year as having moved I am relatively new to the job and will not have exceeded my target, commission should be £15k+ in future years)


Assets
house - £700k (hope this is realistic, it's on the market for more)
land adjoining (in my name) - £65k


Mortgage - £250k (Northern Rock)
Credit card debt - £50k


Having sold my property I have no mortgage and no credit card debt, but no savings either as these have gone on works to the family home and parents credit card debt.


So, questions??
- what happens when/if D-day arrives and we can't repay the mortgage balance? Are we straight out on our ear? Who do we talk to? What should we be trying to negotiate for?
- if it does come to repossession what does that "cost?" are we better offering the house at a reduced price to try and speed up a sale or hanging on?
- should any spare income be being used to bring down the credit card debt, or reduce the mortgage (drip in the ocean type scenario) or start to build a savings fighting fund?


Have been tying my head in knots with all sorts of complex ideas but can't make the sums add up whichever way I do them! If I found some way to raise the outstanding balance and they transferred the property to me would I be liable for stamp duty?

ACG

Its not just going to be a case of end of mortgage pack up and get out.

They will give you some breathing space. If the property is up for sale I imagine they may be a little more lenient.

You could speak to a broker, it may be possible to remortgage it.

Showme

Thanks ACG, it's such a worry

dimbo61

" Credit card debt - £50k "
If your parents did not have this HUGE credit card debt they might be able to manage the mortgage.
Time to look at spending

hcb42

Good of you to help your parents, but they might need to come on here instead of you...they have a fantastic income there and plenty of equity to just downsize and buy something with no mortgage, and cut up the credit cards.

No sign of buyers - what's the market like, is it overpriced compared to the competition or do you need to get Phil Spencer in for a makeover? You could post a link on the house buying thread if you are brave enough

They need to be speaking to the lender however. It sounds like you have no problem continuing to pay the interest between you, which is fortunate in some ways

Thrugelmir

Reduce the property price if there's no interest. Doesn't matter what you think it's worth. It's the price that people will pay that matters. As this is a properties true value.