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Irresponsible lending to pensioner

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Comments

  • midnight_express
    midnight_express Posts: 1,272 Forumite
    How much is the house worth ?
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Gaz83 wrote: »
    ... and what happens when she can't pay back the secured loan, as she's shown she can't do with the unsecured loan?

    The OP's mum is making the repayments on the loan, although she's apparently living on £37.50 per week in order to do so. So there is no issue as far as the bank is concerned.
    Perhaps it would be better for the OP to take over some of the recurring bills directly (CT, house insurance, water, electricity, phone etc), rather than giving mum £290pm directly? At least that way she knows it will not be spent on non-essentials and she will not get into arrears on essential utilities.
    No free lunch, and no free laptop ;)
  • missbiggles1
    missbiggles1 Posts: 17,481 Forumite
    10,000 Posts Combo Breaker
    edited 27 April 2015 at 2:16PM
    Gaz83 wrote: »
    ... and what happens when she can't pay back the secured loan, as she's shown she can't do with the unsecured loan?

    You don't really understand the way equity release loans work, do you?
  • pvt
    pvt Posts: 1,433 Forumite
    Gaz83 wrote: »
    ... and what happens when she can't pay back the secured loan, as she's shown she can't do with the unsecured loan?
    You clearly don't understand how equity release schemes work, do you? So it's ironic you're advising against them so vociferously.

    Essentially you 'sell' a proportion (or all) of your house for a cash sum. You don't pay it back, the mortgagor gets their money when the house is eventually sold. The cash sum one gets depends on whether you're on your own or a couple, how old one is, and what one's life expectancy is.


    There are also other arrangements available, such as a rolled up mortgage.
    Optimists see a glass half full :)
    Pessimists see a glass half empty :(
    Engineers just see a glass twice the size it needed to be :D
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    Guys, I am an idiot. Apologies!
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • wiltsguy_2
    wiltsguy_2 Posts: 536 Forumite
    Gaz83 wrote: »
    Guys, I am an idiot. Apologies!

    i use the exact same sentence to my wife & kids on a daily basis.....:rotfl:
    Plan: [STRIKE]Finish off paying the remainder of my debts[/STRIKE].
    [STRIKE]Save up for that rainy day[/STRIKE].
    Start enjoying a stress debt free life..:beer:...now enjoying. thanks to all on MSE
  • jo6526_2
    jo6526_2 Posts: 80 Forumite
    It's a difficult one when you're mum is getting defensive when you try to speak about money management.

    It might be worth having a word with the bank, see if they can offer guidance.

    Sorry to hear about your sister x
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