Elderly parents can’t pay the bills

AmyDee23

I’m very worried about my Mum and Dad, they are in their 70s and have no money. They are paying over £1000 per month on their mortgage, interest only, which is their biggest outgoing. They are living off their pensions which don’t cover their bills so have started using credit cards which are now maxed out. They can’t afford to pay them back.

They need more money coming in each month and I’m wondering what their options are.

My Dad is thinking about getting a job but he thinks it’s unlikely he’d get one at his age.

He’s had different businesses in the past so always thinks he can start something else up but he’s been thinking of doing this for years and took no action, so I can’t see that happening.

My mum has mental health issues and doesn’t feel like she could work. She’s not independent. My Dad has to take her out and she relies on him a lot to get food shopping, deal with any issues, making calls etc. 

They don’t seem to be able to help themselves and I hate seeing them struggle.

I’m not in a position to help financially, my partner and I run a small business and have 2 young kids so our lives are super busy.

Is there anywhere we can get help? The trouble is, I think they are too proud to admit they are having financial difficulties.

Thanks in advance!

comeandgo

How much is their property worth and what is the mortgage amount outstanding and the interest rate they are paying?

Floss

Interest only mortgage in their 70s sounds like equity release?

Keep_pedalling

The IO mortgage will have an end date at which point they will be expected to repay it or they could be looking at repossession, so they need to face up to that now.

There are a couple of options. 

1. Downsize and pay off the mortgage.

2. Replace the mortgage with equity release. 

You are not in a position to help them financially but you can help with some good advice, so I think you need to get them to open up and tell you exactly what the position is with their finances. It might be worth you trying to get them to put financial LPAs in place as well.

MarzipanCrumble

I would first of all check out Age UK and StepChange websites.  I would also contact them saying you are concerned relative and what can you do to help your parents come to terms with their financial situation.  Advice really.
https://www.stepchange.org/

[Deleted User]

I am not sure if this is the best section of the forum for help and support. Have you looked at the Mortgage forums, the benefits forums and the debt free areas?
I am surprised a lender has let this run so long. £1000 a month interest points to a very large mortgage. Was their no plan to pay off the principal?
Apart from equity release the only other option may be to sell. What is their pension income? Do they both have state pensions?

Keep_pedalling

[Deleted User] said:

I am not sure if this is the best section of the forum for help and support. Have you looked at the Mortgage forums, the benefits forums and the debt free areas?
I am surprised a lender has let this run so long. £1000 a month interest points to a very large mortgage. Was their no plan to pay off the principal?
Apart from equity release the only other option may be to sell. What is their pension income? Do they both have state pensions?

May not be that high some of these IO mortgages have some eye watering interest rates.

I have reported the thread to ask to get it moved to the correct board.

luvchocolate

Think about putting name on housing association over 50s lists

Sell property if enough equity buy something smaller 

Sell property and move into rented accommodation 

They cannot pay the loan amount when due so definitely need to look into options 

Pollycat

[Deleted User] said:

I am not sure if this is the best section of the forum for help and support. Have you looked at the Mortgage forums, the benefits forums and the debt free areas?

I agree with this - all those boards have some very knowledgeable people.

The OP doesn't say what their income is - are they getting any benefits?
If not, these calculators may give an idea of what hey may be entitled to:
Benefits calculators - GOV.UK (www.gov.uk)

Check out if your Mum would qualify for any disability benefits.
CAB & AgeUK can offer advice.

Debt free wannabe board can maybe help trim their outgoings down.

But your parents will need to acknowledge their financial position and accept your help. 

Grumpy_chap

AmyDee23 said:

I’m very worried about my Mum and Dad, they are in their 70s and have no money. They are paying over £1000 per month on their mortgage, interest only, which is their biggest outgoing. They are living off their pensions which don’t cover their bills so have started using credit cards which are now maxed out. They can’t afford to pay them back.

They need more money coming in each month and I’m wondering what their options are.

My Dad is thinking about getting a job but he thinks it’s unlikely he’d get one at his age.

He’s had different businesses in the past so always thinks he can start something else up but he’s been thinking of doing this for years and took no action, so I can’t see that happening.

My mum has mental health issues and doesn’t feel like she could work. She’s not independent. My Dad has to take her out and she relies on him a lot to get food shopping, deal with any issues, making calls etc. 

They don’t seem to be able to help themselves and I hate seeing them struggle.

I’m not in a position to help financially, my partner and I run a small business and have 2 young kids so our lives are super busy.

Is there anywhere we can get help? The trouble is, I think they are too proud to admit they are having financial difficulties.

Thanks in advance!

The current situation as described sounds worrying so your concerns are understood.

How much do you know about your parent's financial situation?  I know with my parents, they are very proud (and secretive) about finances so it makes assisting them rather difficult, even if there is sufficient finance available.  Harder still if there is insufficient finance available.

For the current situation, large mortgage and small pension.  Was there ever a plan that avoided this point being reached?  What has changed on the plan?  Is there a way to recover back to the original plan?