We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Debt Consolidation Query For Secured Loan & Mortgage

Taff
Taff Posts: 60 Forumite
Wonder if any of you good folk would be able to point me in the right direction please.


A good friend of mine is struggling with monthly repayments for Mortgage & Secured loan which total £650/mth. Age 61, recently made redundant living with retired wife. They have a property worth approx 135k and 10k left on mortgage and 28k (@8%) on the secured loan. Both with 10 yrs remaining.


They are having to sell property due to no being able to afford mthly payments.


Would anybody be able to point me in the right direct as to what options may be available to them given the above circumstances?


Any pointers/info offered would be greatly appreciated as I NEED to help them.


Many Thanks

Comments

  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    If they aren't working, then no-one reputable is going to give them any kind of a loan, unless they have any other kind of legitimate, fixed income. Do they?

    Downsizing is probably the best option for them.
    "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."
  • Taff
    Taff Posts: 60 Forumite
    Thanks for reply. I will check when them and post back asap.
  • ReadingTim
    ReadingTim Posts: 4,087 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Best option seems to be sell the current house and use the proceeds to pay off the mortgage and the loan. Use the remainder to buy a smaller/cheaper place outright: if she's already retired and with him unlikely to get another job due to his age, they really need to cut down their outgoings to ensure they can live on their pension income as and when they get it.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.