Elderly parents misold a loan linked to their mortgage, help?

Lesley_L_C

I hope someone can help, my parents are 75 and 79 and still have a small mortgage about 25k. about 15 years ago they were sold a loan for 40K. We are now 2019 and they still owe 40K, not realising at the time they would only be paying off the interest. The loan is linked to the house/mortgage.

They are now stressed and anxious, as my father has retired and in poor health and my mum has also given up work, they are struggling to pay off the debts on their pension.

I believe the name of the company is SWIFT.

Can I contact someone on their behalf to try and consolidate this debt based on the fact they were misold this loan knowing they would never be in a position to pay it off in their old age.

Thanks for your help.

HampshireH

Have your parents been misold this loan?

There is a difference between being mis sold a product and knowingly taking out a product but not reading the terms and conditions. I ask as you refer to them as not realising.

Has SWIFT been sending annual statements to them? These should have shown interest payments only being made.

I can't offer consolidation advice but your post doesn't mention what other debts they wish to consolidate or what they are currently paying out for which debts and at what interest rate.

This info may help others offer some sound advice. Or the debt free wannabe page may be helpful too

Nearlyold

What is the value of the property they live in, presumably far greater than the total debt.

Without knowing the full details I would guess there are two options that spring to mind

Selling up and down sizing

Look at equity release schemes (though this would mean your inheritance would be substantially reduced). A company called Swift Mortgages provide equity release loans - though that's probably a different "Swift" its a popular name.

You could try complaining to Swift though without details of why and how they borrowed the £40K can't say whether this is going to get them anywhere. When you say they were "sold" the loan who approached who?

Pixie5740

Lesley_L_C wrote: »

I hope someone can help, my parents are 75 and 79 and still have a small mortgage about 25k. about 15 years ago they were sold a loan for 40K. We are now 2019 and they still owe 40K, not realising at the time they would only be paying off the interest. The loan is linked to the house/mortgage.

They are now stressed and anxious, as my father has retired and in poor health and my mum has also given up work, they are struggling to pay off the debts on their pension.

I believe the name of the company is SWIFT.

Can I contact someone on their behalf to try and consolidate this debt based on the fact they were misold this loan knowing they would never be in a position to pay it off in their old age.

Thanks for your help.

Nothing you've said so far indicates your parents were mis-sold the loan. Mis-bought maybe but not mid-sold.

Lesley_L_C

Thank you, it is clear I need to get more specific information on this, very helpful

enthusiasticsaver

I don't think this is mis selling but obviously they were unwise to sign up to this. They must have received annual statements showing that only the interest was being paid and no reduction on the capital. When is the mortgage supposed to be paid off? Many lenders will not lend past 70 so I am surprised they have allowed the £25k to remain. How much is the house worth?

jonesMUFCforever

Surely they were not elderly when taking out the loan?
What was the money spent on?

foxy-stoat

What happened to the 40K....what did they spend it all on?

They were 60 and 64 when they took out the loan, what was their mental state then?

You havent said what the interest rate or the monthly repayments were so no one can guess it it was good value you not.

tacpot12

Does the loan have a date that it has to be repaid by? If not, then there is nothing to worry about providing the house is worth more than £65,000.

I'd be more worried about them paying a mortgage when they are 75 & 79.

bris

It just means your inheritance will take a hit. Thousands of elderly homeowners have done this. It's usually the children that are more upset because they know what they are missing out on.


Bottom line is why should they live day to day when they have an asset that can give them a better quality of life.

Lesley_L_C

THANK YOU I'm going to get more information