Late mother’s lifetime mortgage

Str0ud1933

Hi all. My mother took out a lifetime mortgage in 2006 of around £23,000 unbeknownst to me. I only discovered this in 2011 when she passed away. I also found out that she was nearly £40,000 in debt when she agreed to it. At the time my father had passed away only a few months earlier so she was on her own when she made the decision. She was in a bad way financially and the loan she got was quickly used up for necessities and paying off interest on all debts she had accrued. I won’t ever know the true story of why or how she got into so much difficulty but mum and dad seem to have taken out a couple of bank loans in the 80s and it all seems to have snowballed from there. Growing up I never saw them lead an extravagant lifestyle, in fact they lived frugally. I think my mum was very ashamed of the mess she had got into as after she died I found bags of statements from various financial institutions stuffed behind her wardrobe and under the sofa. I was really shocked to discover it and found it very upsetting. After she had passed away I then had 12 months to sell her bungalow so that I could pay her lifetime mortgage off which had gone up to £64,000. At the time I thought the mortgage had probably been a good idea as it had given her some capital, plus it took me a good year or so to sort out all her other debts so I didn’t feel I had the mental energy to look into that side of things. I have now seen an advert from a claims firm saying lifetime mortgages could’ve been mis-sold if the consumer had been financially vulnerable at the time which I believe my mother was. Does anyone know if it would be too late for me to make an issue of this? I feel a complaint of some kind needs to be made in memory of my mum. 

badmemory

I don't know the answer to your question but didn't want to just read and run.  But to be honest, when it is obviously upsetting you to know what has happened, if it is like the PPI claim companies where you only pay if you win, then why not try, unless you want to try direct yourself.  If it is too late to claim then the co will tell you.  Then you have done what you can.

tacpot12

To be honest, I think you should just move on. You don't know anything about how the product was sold to your mother, or whether it was mis-sold. To discover what happened is going to take an awful lot of work, and the claims firm isn't going to do this work for you. You will have to do it, and it is going to tie you up for years, with very little chance of financial reward or apology. I feel sure that your mother would not want to you to dwell over her situation, especially now that it is call resolved. 

user1977

I expect you're out of time (if there had ever been a potential claim) given that you were aware a decade ago of what the final balance was. But there are others here who can probably quote chapter and verse on the relevant time limits.

I suppose one thing to consider is what would have happened to her finances if she hadn't taken out the loan, given that she already had other debts? Would she actually have been in any better position?

Thrugelmir

Str0ud1933 said:

I feel a complaint of some kind needs to be made in memory of my mum. 

Better ways to remember your late mother than rake over old coals from the past. You'll never know why. Secrets remain secrets. 

Str0ud1933

user1977 said:

I expect you're out of time (if there had ever been a potential claim) given that you were aware a decade ago of what the final balance was. But there are others here who can probably quote chapter and verse on the relevant time limits.

I suppose one thing to consider is what would have happened to her finances if she hadn't taken out the loan, given that she already had other debts? Would she actually have been in any better position?

Yes, you are probably right. I just thought if the advisor had had anything about him/her they would’ve suggested a better way for her to manage her debts rather than take out a lifetime mortgage. Of course, that’s assuming if they knew about them although wouldn’t they have done a credit check? No idea.

london21

That must be sad, but you do not know the reason she did what she did.


Years ago i worked for Lloyds PPI claims department, they will ask you what happened at the point of sale which you would not have the details.

Think better to let it pass and keep your peace. 

Str0ud1933

london21 said:

That must be sad, but you do not know the reason she did what she did.


Years ago i worked for Lloyds PPI claims department, they will ask you what happened at the point of sale which you would not have the details.

Think better to let it pass and keep your peace. 

Thank you for your understanding. Yes, it was upsetting - if only she had asked for help. I feel bad she had to deal with it on her own but she was too ashamed to seek advice. I think she was from a different generation where getting into debt carried a lot of stigma. Yes, maybe I ought to. 

badmemory

Which would be the least upsetting for you?  Looking into seeing if you can do something or moving on.  Only you can decide.  Going through one of those claims companies Might be a good use for them.

ACG

Being vulnerable does not mean the product should not have been sold. 
Were there alternatives? Did she have an income? She had been carrying debt since the 80s and your dad had passed away, was there another way for her to clear the debt? 

Thats not to say it was not miss sold, but as you say you were not there, you knew nothing about the debt and it seems your mum did not want to involve you for any number of reasons. 

It sounds like this bought her some time and removed a burden from her she probably did it at a terrible time but to me it looks like probably the only viable option.