Help! Stuck in a 40 year Mortgage with Halifax

Puffalump59

Hi Martin
In need of some urgent help!!!!!!!
I have a mortgage with the Halifax which is called a retirement pension plan,and it is a 40 year mortgage. I am retired due to ill health after an accident at work and after suffering from a stroke nearly 18 months ago. The Halifax have not bothered about me for many years and have never reviewed my mortgage even though i have asked on several occasions for their help they never bother to get back in touch.
I need to sort this mortgage out,as i am 48 and do not know what to do, can anyone please help me of advise me what to do.
Its a minefield and i really need some help before its to late, as i have no idea where to go and what to do with this current mortgage, all i know is that after 40 years has passed i will have to find the money for my mortgage all over again albeit only £42,000.It is worrying me and making me ill again.
I understand that Martin is not contactable but please can anyone help me!!
Thank you
Larry

firthjm

ok just relax, you have come to the right place for help, its a bit late at night but i am sure someone will be along to answer your question in the morning.

dunstonh

Go to an IFA and ask them advice. Your documents will need to be looked at and the IFA can write to Halifax and ask questions which they will respond to you. The IFA can then advise you accordingly.

If you owe money, then you cannot avoid that. However, if its an equity release style scheme then the terms need to be looked at and you informed of your options. With so many different versions over the years and providers offering different T&Cs each time, your case needs to be looked at on an individual level once the facts are known.

Puffalump59

Hi Thanks to those who have responded to me
Where do i start with regards to an IFA? Do i go to the Halifax and ask them or somewhere else and will it cost me? Should i go to another building society or bank?
Unfortunately being retired due to ill health has its downfalls, and doe's not help financially and my funds are limited.
The property is worth considerably more now since i moved in nearly 22 years ago.A retirement pension plan mortgage with the Halfiax is just a interest payment. But I pay over the top of the required amount in the hope that it helps to reduce the amount.
The Halifax are totally useless and never help even when i have called them they never call back.When you call them back you have to go through it all again and then end up awaiting another call which never happens.
I live in Essex and any help or advice or pointing in the right direction would be really appreciated.
Life is passing by at an alarming rate and i would really like to sort this out before its to late,I would not like to leave any problems for my family if anything happens to me.
Thank you in advance.
Larry

dunstonh

Is this perhaps a pension mortgage where you never did the pension element? It's starting to sound like one of those.

You can find a local IFA at www.unbiased.co.uk

The tied agents at Halifax or any other bank are not going to be much used to you as they wont be able to obtain details from other providers (like IFAs can) and most of them will not be authorised to give advice on pension mortgages. This is why an IFA is your best option.

regularsaver1

You have what is called a Retirement Home Plan Scheme (RHP). Halifax no longer offer this, and if you do see an advisor they are now only authorised to speak about your mortgage on a non-advised basis, so I agree with dunstonh about seeing an IFA. I don;t think the staff on telephone can even talk about RHP mortgages due to certain rules.

What is it exactly you want help with?
There are other interest rates that are specific to RHP mortgages.

It is an interest only mortgage for the amount you require. It is designed that on your death (sorry to say) that the Halifax get their money back when house is sold (which would have reduced a bit because you say you have overpaid a little) - but also your family will have the equity in the property as halifax have no claim on that, other than what you owe. If the 40 years is up before, they can extend the mortgage for what is owed.

The RHP mortgages were usually only offered over the age of 65, so there must have been an exceptance for you.

regularsaver1

dunstonh wrote: »

Is this perhaps a pension mortgage where you never did the pension element? It's starting to sound like one of those.

You can find a local IFA at www.unbiased.co.uk

The tied agents at Halifax or any other bank are not going to be much used to you as they wont be able to obtain details from other providers (like IFAs can) and most of them will not be authorised to give advice on pension mortgages. This is why an IFA is your best option.

it isn't one of these, but still worth seeing an IFA, as Halifax no longer offer RHP mortgages and can not give advice

jennifernil

We had the same mortgage, but only for a 2 year term at a very good rate. At that time (2004) they were available to anyone over 55.
As said, it is basically an interest only mortgage repaid when your house is sold. If you want a repayment type then shop around yourself or use an IFA.

jamesd

At 2% inflation for 40 years the mortgage value in today's money will be 19,000. At 3% inflation it will be 12,875. At 4% inflation just 8,750. What it would take to clear it in 40 years is something like a 40 Pound increase in your payment today. Or you could start investing say 30 a month in investments in a stocks and shares ISA.

One reason these plans are interesting is that it's possible to invest the money, use income from it to pay the interest and take 3-5% of the money as income that grows with inflation. Though for the first few years this requires taking some income from the capital.

seven-day-weekend

Can someone please tell the guy the best way to find an IFA (Independent Finacial Advisor) as I think he is stuck here. Are there any qualifications/membership of Professional bodies he should look for? Is he best looking in somerthing like the Yellow Pages or is there another way to do it?

I'd tell him myself, but I'm not sure.

Debt_Free_Chick

seven-day-weekend wrote: »

Can someone please tell the guy the best way to find an IFA (Independent Finacial Advisor) as I think he is stuck here. Are there any qualifications/membership of Professional bodies he should look for? Is he best looking in somerthing like the Yellow Pages or is there another way to do it?

I'd tell him myself, but I'm not sure.

Post #5

You can find a local IFA at www.unbiased.co.uk

That site only has IFAs registered under the FSA