Mortgage Interest Only-Advice Needed for My Parents

Kasbah63

Hi Everyone, Really need some help for my Parents...Basically they have been ill advised previously and have ended up with an Interest Only Mortgage that is due to end April 2015, they either have to find £73,00 or as been advised by their Mortgage Co. Sell the House...They thought they would be able to sign the house over to myself or my son but neither of us will be accepted due to being on Esa and a Student and continue to pay the mortgage themselves, but no can do. They currently have tenants (friends) paying £400/month rents. Dad is 73 retired, Mum 74 working part-time they have state pensions, 2/3 private pensions and a little savings. They have had the house since 1984 various remortgages and don't really want to sell. I suggested a Buy To Let Mortgage but am not really sure whats best for them. Any advice on the best way to proceed? Thanks for reading

amnblog

What is the property worth?

MLSY

hi kasbah

are they living in the house and subletting or do they rent it out in full

if they do rent it our where do they live ?

regards Ian

Thrugelmir

Kasbah63 wrote: »

They currently have tenants (friends) paying £400/month rents.

Is the lender aware?

chanz4

Thrugelmir wrote: »

Is the lender aware?

Or taxman as most will be over

Senior_Paper_Monitor

If 400 becomes 354 then 'rent a room' means no tax and no reporting necessary (assuming the parents are still in the property as well).


There is insufficient detail her to make any comment as to the solution - but there probably is one.


A good mortgage adviser should be able to sort out the options and best plan with out too much difficulty.

Kasbah63

Thanks for the replies, the house is worth £120,00, yes I think the lender does know, they did not seem to be willing to help. They do not live there anymore, they rent it out fully, so suppose it is subletting, they moved to a housing association bungalow due to ill health.

Thrugelmir

Kasbah63 wrote: »

Thanks for the replies, the house is worth £120,00, yes I think the lender does know, they did not seem to be willing to help. They do not live there anymore, they rent it out fully, so suppose it is subletting, they moved to a housing association bungalow due to ill health.

To be frank it's not the lenders problem to resolve. Either switch to a new lender or sell the property.

MLSY

hi kasbah
if they are renting property out in full they can look to switch the mortgage to a buy to let basis depending on their circumstances

regards Ian

Kasbah63

I do realise it is not the Lenders problem to resolve and appreciate what you are saying about switch or sell.
Ian, that was my line of thinking, but would their age go against them?
I obviously want to try and help them as best I can by trying to find as many solutions as possible.

Mojisola

Kasbah63 wrote: »

They do not live there anymore, they rent it out fully, so suppose it is subletting, they moved to a housing association bungalow due to ill health.

So just sell the house.