Mortgage account with cheque book

Jamsop

Can anyone help me with somewhere to start?
My parents have struggled over the years, always paid there mortgage and would have been mortgage free next year but about 7/8 years ago Barclays sent them a cheque book and said you can use this to draw on money you need. I don't think they really understood, however, instead of being mortgage clear next year they have been allowed to take out around a further 50k in a seperate account which is obviously tied to their house - I know this seems extravagant but it was always to make ends meet really, car repairs and support my brother who lives at home and is unable to work.
There were never any restriction or checks that they could afford this or would be able to repay and my dad is 74 and my mum can't retire at 68 due to this situation.
I believe now that Barclays no longer do this account.
I don't know where to start but we have til next April to sort it out or they will lose their home, which is worth around 170k.
Thank you to anyone who could offer any advice.

ACG

Some Barclays mortgages did have this facility, I think they were the only lender to offer it and a few years ago they pulled it and have also tried to reduce the facility where it is not being used. I assume your parents would have had letters about it? But I could be wrong, Barclays may not have written out if it was being used.

The options will be:
- Equity release - the downside to this is the balance if not paid (it does not have to be) will compound and mount up. They will never need to leave their home but it will mean their is no/little inheritance.
- A mortgage lender who will accept pension income and will allow the money to be borrowed until an older age - some lenders will go to 85. But that assumes their pensions will be enough to pass the affordability checks.
- Sell up and downsize/downgrade.
- Use some of the pension lump sum to clear a chunk of the mortgage. If the balance drops for instance from £50k to say £10k, Barclays are more likely to accept a payment plan over the longer term as it will cost them more to take it to court than it will to just accept some sort of repayment plan. They may only agree to this once it very close to the mortgage end date, which will probably mean a lot of stress in the interim.

None are ideal, but they are not going to write off £50k because your parents used a chequebook and did not realise it was not being repaid. They will have received mortgage statements annually showing the balance and presumably transactions (ie money they were spending, interest and their repayments).

Jamsop

Thank you so much for your reply, it is really helpful.