Parents House - Options for Mortgage

Captain_Magenta

I'm after some advice on options for my Mum's house.

I've recently found out that her mortgage is due to complete next April and she still has £50k left outstanding. She has £22k saved, but obviously this will not cover the shortfall.

I've read that there are options around extending the mortgage or having some company purchase the house and she remains in it until she passes away.

I'm a bit shocked that she has only just told me this now, so I'm looking for ideas about what possibilities there are so we can sit and discuss. One option is that I pay the balance, but I want to see what other options are to weigh up the pros and cons as I will need to make arrangements if I was to pay it and it complicates my financial circumstances.

Thanks in advance.

Thrugelmir

Much depends on your mother's personal circumstances, i.e. age, income etc. Speaking to the existing lender should be the place to start.

Overpaying the mortgage maybe financially advantageous. If the interest rate on the mortgage is higher than that being earnt on the savings.

csgohan4

If you have other siblings and you pay the outstanding 50k, ensure this is reflected in your mother's will.


But if you want to extend the mortgage, like above, depends on several factors. Maybe a broker will be able to advise further

amnblog

The good news is mum has told you and you have six months to resolve this.

There are a number of ways to handle this situation.

Extend the current mortgage
Remortgage
Use Equity Release
Family to assist to settle
Family purchase the property

It is unusual for there to be no solution in these circumstances.

What is right and best for mum depends on many factors such as her age and income status.

As suggested - a mortgage broker is the correct first port of call.

Captain_Magenta

Thanks everyone. I've got some ideas to look into now.