Father In Mortgage Arrears

Thealoeverabusiness

I hope this is the right place to post this question. So, long story short. My father in law has a house with a current value of about £450,000 and he is now 72 years old. He has a mortgage with Santander for £60,000 (interest only) and then about 10 years ago (without our knowledge) he borrowed £150,000 secured (with Blemain Finance). He developed health problems and had to give up work and quickly got into arrears. Blemain has tried several times to repossess his house but my wife and myself have always managed to stop it at the last minute. Due to the threats and harassment from Blemain my wife and myself paid them £100,000 and £226.00 per month, but the debt still seems to be growing. My father in law pays Santander from his pension.

I have suggested to my wife that her father should transfer part of the equity of the property to her, then they remortgage with a reputable provider for about £200,00 to pay us back, as well as Santander and Blemain. We could then rent the upstairs rooms (he does not use them) for about £800.00 per month to help repay the new mortgage. Is this too simple or have I missed something.

My wife and I currently have a mortgage on our own property and we have three BTL mortgages.

Is there a better way of dealing with this conundrum. Any help or advice will be gratefully received.

Thanks in advance.

marliepanda

How do you suggest a 72 year old gets a 200k remortgage?

(assuming you made a typo, and meant 200k not 20k)

fed_up_and_stressed

Thealoeverabusiness wrote: »

Is there a better way of dealing with this conundrum. Any help or advice will be gratefully received.

My thought would be for your parents to sell under their own volition pay off their debts and move somewhere affordable to their present circumstances

davidmcn

Thealoeverabusiness wrote: »

I have suggested to my wife that her father should transfer part of the equity of the property to her, then they remortgage with a reputable provider for about £200,00 to pay us back, as well as Santander and Blemain. We could then rent the upstairs rooms (he does not use them) for about £800.00 per month to help repay the new mortgage. Is this too simple or have I missed something.

A reputable provider who would accept a 72 yr old joint borrower (with poor payment history) and is happy to have lodgers? I don't think this is going to work.

If he has plenty of equity and a property too large for his needs, why not sell?

Guest101

Thealoeverabusiness wrote: »

I hope this is the right place to post this question. So, long story short. My father in law has a house with a current value of about £450,000 and he is now 72 years old. He has a mortgage with Santander for £60,000 (interest only) and then about 10 years ago (without our knowledge) he borrowed £150,000 secured (with Blemain Finance). He developed health problems and had to give up work and quickly got into arrears. Blemain has tried several times to repossess his house but my wife and myself have always managed to stop it at the last minute. Due to the threats and harassment from Blemain my wife and myself paid them £100,000 and £226.00 per month, but the debt still seems to be growing. My father in law pays Santander from his pension.

I have suggested to my wife that her father should transfer part of the equity of the property to her, then they remortgage with a reputable provider for about £200,00 to pay us back, as well as Santander and Blemain. We could then rent the upstairs rooms (he does not use them) for about £800.00 per month to help repay the new mortgage. Is this too simple or have I missed something.

My wife and I currently have a mortgage on our own property and we have three BTL mortgages.

Is there a better way of dealing with this conundrum. Any help or advice will be gratefully received.

Thanks in advance.

He wont get a new mortgage now. He isn't working, has health problems and is 72.


You could still rent out the upstairs rooms, but that income would be taxable.
When you paid off £100,000 + monthly payments, what did you actually pay from the balance?


I think this money would be considered a gift and you'd have little to no recourse in recovering it - you've not mentioned any paperwork to make it a loan.

marksoton

Why are you trying to complicate it?

He sells and downsizes.

marliepanda

marksoton wrote: »

Why are you trying to complicate it?

He sells and downsizes.

Selling and downsizing will no doubt allow him to pay back the mortgage, the loan and the loan that his daughter paid off. Especially considering that he doesn't even use a whole floor of the house!

But I imagine inheritance and adding another property to their BTL portfolio is pulling the strings here.

marksoton

marliepanda wrote: »

But I imagine inheritance and adding another property to their BTL portfolio is pulling the strings here.

How very cynical!

fed_up_and_stressed

marliepanda wrote: »

Selling and downsizing will no doubt allow him to pay back the mortgage, the loan and the loan that his daughter paid off. Especially considering that he doesn't even use a whole floor of the house!

But I imagine inheritance and adding another property to their BTL portfolio is pulling the strings here.

There won't be anything to inherit if the property is repossessed !

nubbins

marksoton wrote: »

Why are you trying to complicate it?

He sells and downsizes.

Agreed simple, he'll still have 250ish

Pixie5740

If there are 2 charges on the property he won't be able to transfer ownership of any amount to his daughter without the consent of the two charge holders and I doubt they'd agree to it.

Downsizing seems to be the most sensible option. A smaller property will also have lower running costs giving your FIL more money in his pocket.