Thankyou - now sorted

g4fne

Thankyou, now sorted.

Mojisola

Any family members (or a group of them) able to loan the £25k? Could be paid off slowly or in the future when the house is sold.

csgohan4

g4fne wrote: »

A family member is 66 and their current interest only mortgage is due for settlement. For reasons unbeknown there is nothing in place to cover the £25k amount. Any re-mortgage offered is a maximum of 9 years and they cannot afford the repayments. They have spoken to Stepchange who have suggested an equity release scheme.

I realise StepChange are a charity but is there advice normally good??

Short of moving can anyone suggest any other options??

If they do go down the equity release scheme, how do they propose to pay for it in the end?


Perhaps down sizing would be an option. I would probably also check the lease on their house, if they buried their heads on their mortgage, what else have they forgot about?

ACG

csgohan4 wrote: »

If they do go down the equity release scheme, how do they propose to pay for it in the end?

Equity release does not need paying back. The lender gives the money to the owners of the property to pay off their mortgage plus an additional amount if possible. The company then effectively owns the property but only gets their money back when the property is sold which is usually when the person passes away. the downside is that there is usually nothign to pass on to the kids.

If your relative wants advice specific to their circumstances, there could be other options. Stepchange are more of a generic advice centre so the information they give may not be the best for your relative.

betmunch

It is possible to get a mortgage longer than 9 years, but without a full fact find can't say if its possible for your relative.

They need to speak to a good broker, preferably one with the relevant qualifications to arrange equity release mortgages so all options are considered.

Step change mean well, but they can't advise on mortgages (as far as I'm aware)

g4fne

Thankyou for the responses. For the record these are the steps taken so far.


Downsizing at the moment isnt an option though not ruled out in the future.

They have seen an independent Financial Advisor who advised they cant get a mortgage longer than 9 years.

They have spoken with current lender .... with no joy.

They have spoken with their bank .... again no joy.

betmunch

I would speak to a mortgage broker to confirm what the IFA has said, if its correct then then from what you say the only remaining options are sell or equity release

Thrugelmir

g4fne wrote: »

A family member is 66 and their current interest only mortgage is due for settlement. For reasons unbeknown there is nothing in place to cover the £25k amount. Any re-mortgage offered is a maximum of 9 years and they cannot afford the repayments. They have spoken to Stepchange who have suggested an equity release scheme.

I realise StepChange are a charity but is there advice normally good??

Short of moving can anyone suggest any other options??

Are there other issues to be considered given you've consulted Stepchange?

g4fne

Thrugelmir wrote: »

Are there other issues to be considered given you've consulted Stepchange?

No other debts if that what you asking??