Aged mothers mortgage

Bianchiintenso

Wonder if anyone can help or offer advice regarding my mother’s mortgage situation. Due to a mortgage extension sh took out years back she appears to be trapped in a situation with a company called Mars capital who although not a mortgage company have taken on the debt from a company called Kensington who no longer provide mortgages. 

This situation means she is paying a rate of almost 9% which obviously is not sustainable. Having spoken to Mars they have no other product to offer. It seems they say it will be very difficult if not impossible for her to get another mortgage based on her circumstances. Has anyone been through any thing similar and could offer advice or help.
we have spoken to money helpline and they seem to giving a similar answer unfortunately 
many thanks

elsien

How old is she, what income has she got, what is left to pay on the mortgage over what term, and how much equity is there in the property?

Bianchiintenso

Age 86, 55k to pay , 8 years to go. House value approx 125k
many thanks

ACG

Who did that mortgage?!

Has she spoken to a broker (ideally not the one who did the previous mortgage)?
It might be possible for your mum to look at a RIO mortgage (retirement interest only) or equity release. 

I am not sure what the rates on those would be, I am guessing around 7-8%, but in the case of equity release there would be no requirement to make mortgage payments - this has the downside the the balance builds up and eats into the equity which would be used for care or your potential inheritance, but it hopefully gives your mum a little less stress each month. It might be possible with some products to still pay the interest stopping it increasing, but its not a requirement. 

Bianchiintenso

It seems the more questions I ask her the more skeletons come out. I didn't realise but, it seems the house was originally paid off by the insurance due to the death of my father some 35 years ago.

About 15 years ago my mother got into a relationship and he moved in with her. They decided to remortgage to release some money ( I think £50k). 

It seems to do this the TSB said both my mother and her new partner would have to have both their names on the deeds. The new partner died about a year after that, so my mother was left paying all the repayments herself which you'd expect (although why there wasn't some sort of insurance to cover this event is beyond me).

My sister tried equity release through Age Partnership for her. When it came to light about his name being on the deeds and him dying intestate obviously the ER couldn't go through. She was managing while the interest rates were at 4%, now they're almost 9% and likely to rise with Mars capital it is causing her hardship. The  mortgage term ends in 8 years.

I could buy the house off her possibly, but because her partner died intestate, his children would have claim on 50% of house if/when it goes to probate, although he only paid half the repayments for a year. Such a mess!

To be honest if this could be resolved and she could live in her house till the end of her days, we wouldn't care about any inheritance/capital left in the house as she is getting very stressed and upset about it all.

Bianchiintenso

Originally the mortgage was TSB I think, Then Kensington Mortgage company took it over, who then sold it to Mars capital

Gavin83

When he was added to the deeds was it setup as joint tenants or tenants in common?

Bianchiintenso

it says

This register specifies the class of title and identifies the owner. It contains any entries that affect the right of disposal.

1. (25.09.2007) PROPRIETOR ********* and **********of *********.

2. 2  (25.09.2007) RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

3. 3  (25.09.2007) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate, or by the proprietor of any future registered charge, is to be registered without a written consent signed by the proprietor for the time being of the Charge dated 21 September 2007 in favour of Kensington Mortgage Company Limited referred to in the Charges Register.

prettyandfluffy

You could try contacting Age U.K., when I needed advice (not mortgage related) for my Mum, they were very good.

elsien

I think that wording means they were tenants in common rather than joint tenants which unfortunately does mean she doesn’t inherit the 50%. 

Bianchiintenso

I agree it’s  tenants in common, it’s all a bit of a mess unfortunately, a case of bad / uniformed decisions at the time.