Mis sold mortgage?

123milly22

Hi
I understand that the FSE has declared that there were no mis sold mortgages
But i have a question please:
My mother is 88 years old and was sold an interest only mortgage approx 15 years ago (so she would of been 73) of 150.000
I am shocked that a person would be eligible for a mortgage of this size
The original mortgage was with derbyshire home loans who no longer exist and her mortgage is now held with The Mortgage works
She pays and has paid for the last 15 years £550 per month
She has always struggled to pay this amount but is struggling even more now as her only income is the state pension of approx £630 and a BT pension of £414 a month
Is there anthing i can do to free her of this monthly commitment and/or this mortgage
The property she lives in is worth £300,000.00
Thank you

BoGoF

Yes, sell the property.

BoGoF

For the avoidance of doubt was this a mortgage to buy the property (in which case doubling her money) or an equity release mortgage (in which case what happened to the money?)

123milly22

Not answering you - don't like your abrupt and very unhelpful reply's

TrickyDicky101

123milly22 wrote: »

Not answering you - don't like your abrupt and very unhelpful reply's

To avoid undesired replies perhaps you could indicate what response you would deem helpful. Do you want:

(a) Mother to repay the debt whilst still remaining in the property
(b) Mother to repay the debt and subsequently her living elsewhere
(c) Debt to be forgiven so that mother does not need to repay it

Exodi

123milly22 wrote: »

Not answering you - don't like your abrupt and very unhelpful reply's

I didn't find his replies in the least part unhelpful or abrupt??

TrickyDicky101 wrote: »

To avoid undesired replies perhaps you could indicate what response you would deem helpful. Do you want:

(a) Mother to repay the debt whilst still remaining in the property
(b) Mother to repay the debt and subsequently her living elsewhere
(c) Debt to be forgiven so that mother does not need to repay it

The fact the title is 'mis sold mortgage' suggests the OP is banking on (c).

kingstreet

What you are describing is now known as a retirement interest-only mortgage where the idea is that the mortgage remains the same throughout and is repaid from the sale proceeds of the property on death.

This is better than an interest-roll up deal where nothing is paid and the equity in the property is used-up instead.

A mortgage into retirement isn't necessarily wrong as long as the applicant is aware of the implications and affordability has been established.

The options are;-

ask TMW for a better rate
try to remortgage elsewhere
help her make the payments to safeguard your inheritance
sell the property, repay the mortgage and be mortgage-free.

123milly22

Thank you kingstreet for your helpful reply
I do help my mum with her payments and bills etc as much as i can
I will contact TMW to see if they can help her with a better rate

ACG

Your mum could potentially look to take out a lifetime mortgage/equity release which will be used to pay off the £150k.

The downside there however is that the interest would usually roll up (although there are some where you can pay the interest/part of the interest) which will eat in to the equity and any potential inheritance.

AnotherJoe

Was she living in the property when she took this mortgage out or was it part of the purchase of the property?
If the former, what did she do with the £150k?
Also, any idea what the property was worth 15 years ago, ballpark?

foxy-stoat

As a responsible borrower, how did your 73 year old Mother think she was going to repay the £150,000 when the mortgage term ended? What was her re-payment/savings vehicle?

Endowment, monthly savings or sell? If she saved £500 a month then in 25 years she would of had enough to clear the mortgage (assuming it was a 25 year mortgage.

The answer in post #2 is an option - even though its one you didn't want to hear.

It does seem odd that they gave her a mortgage past her retirement age though. Do you have all the original paperwork and fact finding documents to see what she actually signed up to?