Irresponsible lending to pensioner

jonesMUFCforever

missbiggles1 wrote: »

Has your mother looked at taking out an equity release loan to repay current borrowing and give herself a float?

NO NO NO NO !!!!!!!!!!!!THIS IS TOTAL MADNESS!

Did you read all this thread at all - she could lose her house with with this awful suggestion.

Gaz83

missbiggles1 wrote: »

Has your mother looked at taking out an equity release loan to repay current borrowing and give herself a float?

Just ignore this insane drivel, OP.

loskie

I wonder if she has already done that.

missbiggles1

jonesMUFCforever wrote: »

NO NO NO NO !!!!!!!!!!!!THIS IS TOTAL MADNESS!

Did you read all this thread at all - she could lose her house with with this awful suggestion.

Not with the current type of equity loans she couldn't, although I know there have been scandals in the past. Even Age UK are happy to suggest them in the right circumstances.

Tixy

70 isn't too old to learn to budget.

If she cannot afford the repayments without keeping borrowing more then the sensible thing is to default on the payments and set up a reduced repayment plan (with advice from one of the debt advice charities).

Likely they will accept reduced payments and may agree to freeze interest.
But in the unlikely event that they did consider applying for a CCJ then charging order against the property she would not be forced to sell her home, the charging order would just sit there until the house was sold.

Gaz83

missbiggles1 wrote: »

Not with the current type of equity loans she couldn't, although I know there have been scandals in the past. Even Age UK are happy to suggest them in the right circumstances.

Just to confirm - you would advise someone who's clearly terrible at budgeting to transfer unsecured debt into secured debt?

Thrugelmir

ruth2561 wrote: »

Is it responsible lending on the banks part to lend 50% approximately of a very small income for a personal loans?

Was the money used to clear other debts that your mother had run up?

pvt

Gaz83 wrote: »

Just to confirm - you would advise someone who's clearly terrible at budgeting to transfer unsecured debt into secured debt?

Yes - in this instance I would.

Many older people find themselves asset rich and cash poor. A good, reputable equity release scheme would potentially be used to pay off the borrowing, thus increasing disposable income by nearly £300 per month.

The whole idea of most equity release schemes is they will guarantee the home owner the right to continue to live in the property until they no longer need it.

missbiggles1

Gaz83 wrote: »

Just to confirm - you would advise someone who's clearly terrible at budgeting to transfer unsecured debt into secured debt?

In this particular situation, yes. As the OP's mother is asset rich and cash poor, what's the point in spending her later retirement in penury when she could use her asset to give her a decent standard of lf living?

Gaz83

missbiggles1 wrote: »

In this particular situation, yes. As the OP's mother is asset rich and cash poor, what's the point in spending her later retirement in penury when she could use her asset to give her a decent standard of lf living?

... and what happens when she can't pay back the secured loan, as she's shown she can't do with the unsecured loan?