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Mis sold Mortgage?!

suzuki620
suzuki620 Posts: 1 Newbie
in Mortgages & endowments
Hello,

Looking to see if anyone has any advice on the following. My father-in-law got an interest only mortgage for approximately £13,000 in 1992 (He was aged 67 and his wife 69 at that time) Then in 2006 (When he was 81 and the wife 83 )he received a letter from the bank offering £17,000 for home improvements so now he has an outstanding interest only of approximately £30,000.
He is now 92 years old (widowed) and still paying his interest only mortgage every month.
Does this sound right?!!

Comments

  • dunstonh
    dunstonh Posts: 120,009 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Does this sound right?!!

    If what you tell us is true then it must be right. We only have access to what you tell us.
    Mis sold Mortgage?!

    You haven't said why you think it was missold?
    Or what your FIL spent the money on
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • haras_nosirrah
    haras_nosirrah Posts: 2,208 Forumite
    Did he need the money? An interest only mortgage where the interest being paid at least means the house value isn't being eaten up. If he needed the money for home improvements and he can afford the monthly repayments then it sounds fine to me.
    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.
  • ACG
    ACG Posts: 24,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Funny, I have an 83 year old who called me last week for a Mortgage for home improvements and would prefer it on interest only.

    What makes you think it was miss sold? Nothing you have said so far makes it miss sold.
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 27 December 2017 at 10:52AM
    suzuki620 wrote: »
    he received a letter from the bank offering £17,000 for home improvements

    Normally people apply for additional borrowing.
  • -taff
    -taff Posts: 15,388 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    What are you more worried about? His ability to pay the mortgage [which hasn't been a problem since the 90's] or the amount owing on the mortgage when he passses?
    Non me fac calcitrare tuum culi
  • Amst
    Amst Posts: 141 Forumite
    -taff wrote: »
    What are you more worried about? His ability to pay the mortgage [which hasn't been a problem since the 90's] or the amount owing on the mortgage when he passses?

    They're obviously worried about the reduced equity in the inheritance pot.
  • Boredatwrork
    Boredatwrork Posts: 2,068 Forumite
    Some older people took interest only mortgages intentionally as they knew they could probably never afford to own the property out right, it was generally cheaper, and they knew they had less risk of being kicked out as they did if they rented.

    I don't know his circumstances but Mi-sold is probably a bit misleading, they provide paperwork of the deal, and I assume he signed the deal.
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