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Retirement Mortgage Issue

Hi there
My mother has received a mortgage redemption statement in for her retirement mortgage. She borrowed £25K about 10 years ago and is currently repaying at around £100 per month. The statement states that if she repaid it tomorrow they would require £43K in settlement. I don't know that much about mortgages but seems excessive to me. The mortgage is with Halifax. Does anyone know how I can see about this? I remember there being a scandal a fews year back re retirement mortgages and I am looking to see if she has been mis-sold this.


thanks


Mandymoo

Comments

  • ANDR£W
    ANDR£W Posts: 45 Forumite
    Hi Mandy I'm no expert but I'm guessing the 100 she was paying off was mainly interest on the 25k as she theoretically remortgaged a percentage of her property the 42k is probably the value of the equity that she sold? Then again I could be totally wrong :-/
    ANDR£W
  • ACG
    ACG Posts: 24,896 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Is it an equity release mortgage she has?
    Have you spoken to Halifax and asked them for information?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I think she got the house for around £10K via Right to Buy. She is in her late 70's and can hardly remember yesterday never mind 10 years ago.
  • I will need to ask her ACG. She is not very good with these type of things.
    thanks
    mandy
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