Pensioner Mum coming near the end of her mortgage term on interest only - balance still left to pay

moneymanager

My parents bought their housing executive house on an interest only mortgage approximately 20 years ago. At the time they were only paying around £40 a month and to be honest they were finding it tight with money. I think they had made plans to start to pay off some of the capital, but they had just taken the mortgage and about a year or so later my dad took ill and passed away.  We knew they only had insurance out on one of them, but it was after my dad died that we realised my mum took it out on her and not him. So the house was not paid for.   

 

I had taken her to the mortgage lender a few years ago to discuss getting onto a lower interest rate so that she can start paying off some of the capital but that did not happen. I live a good thirty miles away from her, so I do find it difficult to sort out her affairs all the time and my sister just does not do anything like this for her.

 

But now her interest rate has gone up to 7% or so and she is now paying £125 a month for her interest, and I reckon there is less than 5 years left of her term. Her mortgage amount is around £23-24k. I just feel sick to the stomach about this, and so does she and we always end up arguing about it. My brother has also since passed away and my sister is not taking any interest and this all falls onto me. I worry that this will fall onto me to pay or that my mum will have to move in with me at the end of the term. She is 77 years old, and this is a headache she should not be dealing with at her age.

 

Any advice would be appreciated or where can I go to get advice on what to do.

 

Thank you.

Keep_pedalling

She might like to consider a lifetime mortgage. It secures her house and she will have a lot more disposable income. It might reduce the inheritance her children get but there is no downside for her which is the most important thing.

diystarter7

Hello OP

I'm sure they won't, but have parents considered selling up and moving ito a shelter  place? I think they can move in subject to availability even if they have not sold their home. Every council may be different re this but chat to them and if interested, seek info. Better still if you think they will consider that, investigate first then let them know, ask them as not to let them down should they want to move. Rents form what I have read are lower in council places.
Good luck

MWT

moneymanager said:

My parents bought their housing executive house...

Should we assume from this that she is located in Northern Ireland?

Do you know the rough value of the house at the moment?