possible misold mortgage

csgohan4

what does your mother have to say about this? She is an adult as well, how did she plan to pay off the loan?

silvercar

csgohan4 wrote: »

what does your mother have to say about this? She is an adult as well, how did she plan to pay off the loan?

Possibly she felt she wouldn't need to worry about it. Wouldn't be her problem. They could take the loan from the proceeds from the sale.

csgohan4

silvercar wrote: »

Possibly she felt she wouldn't need to worry about it. Wouldn't be her problem. They could take the loan from the proceeds from the sale.

The key thing is, if the OP's mother fully knew about this as an adult with full capacity and she could pay it off from her estate, then there is no issue.


Possible the issue here is inheritance perhaps?


If the OP couldn't lend 10k at the time or the mother didn't ask, nothing much you can do now other than to pay it back now or through the estate

silvercar

If you don't pay it off what happens?

At the end of the term the lender asks for repayment. 89 year old lady says she hasn't got the money. Lender has 2 choices, extend the term or take the lady to court for repossession. There is no guarantee that a judge will grant repossession when the outstanding loan is such a small percentage of the house value, especially if the judge considers the lender reckless in these circumstances.

csgohan4

silvercar wrote: »

If you don't pay it off what happens?

At the end of the term the lender asks for repayment. 89 year old lady says she hasn't got the money. Lender has 2 choices, extend the term or take the lady to court for repossession. There is no guarantee that a judge will grant repossession when the outstanding loan is such a small percentage of the house value, especially if the judge considers the lender reckless in these circumstances.

A charge on the property is a possibility and they can collect on selling of the house in the future.

Either way, OP needs to sit down with mother and find a way to move forward so they don't have to worry about this over xmas

getmore4less

FIASCO wrote: »

My mother went to her bank to ask for a £10k loan. She was advised to take an interest only mortgage from her mortgage for the amount. This was in 2009, she is currently 86 years old.


How to pay the amount at the end of term was not mentioned. Nor was her age and the fact she and my father are pensioners with low income receiving pension credit.


I recently realised they had this interest only mortgage and managed to have it changed from the variable rate to a fixed rate enabling them to be paying less of a monthly payment. Over the years the interest rate fluctuated and they paid over the odds for the mortgage. In getting a better rate they had to change their mortgage to interest only again as they failed the current affordability test for a repayment mortgage (repayment was our preferred option and we would have attempted to pay the debt off as fast as we could).


Recently we wrote to the bank to say we believe in 2009 they misold the mortgage as the didn't do proper checks and inform my mother of the facts. They have fobbed me off now saying we are out of time to do anything. Recourse is ombudsman.


I am posting to ask if anyone has a similar experience and could advise of a way forward here.


Its unfortunate that I didn't realise before recently that this situation had occurred and very disappointing that the bank have been so careless in the way they dealt with my mother.


Any help? (Halifax..Bankof Scotland)


Fiasco

what was the original full term.

what is the outstanding debt if it was on repayment for some of that time?