Help and advice needed???

Paintpot_2

Hi

I am new on here.....well I am new to the forum at least

I have a bit of a problem and I thought someone on here might be able to make some suggestions to make things better

Here is the story...

My other halfs parents are having some problems with their mortgage
They had paid for their property when they bought it but we have since found out that a few years ago they took out a mortgage on it for £50k (they say its a mortgage but it may be a loan I suppose)
The repayments on this are just over £1000 a month - which quite frankly they can not afford and I am shocked that any company gave them this

We have helped them out once before when they told us they hadnt been able to pay and they owed £2k, now they are struggling again, but we cant help as we are buying our own place and jsut dont have the money

I have been asking them to get all the details out for the mortgage so we ca n look over it and see if there is anyway of lowering the payments or soemthing but they seemed to scared to try...and they are too embarassed to talk to someone about it


Can anyone suggest ways we can look into getting payments reduced or something?

Also can't get my head round the fact they borrowed £50k over 10 years they have been paying for 6 years at £1k a month............how can they have got such a shocking deal


Can someone please shine a light at the end of the tunnel, any suggestions might help

Thanks in advance

silvercar

50k on an interest only mortgage at 6% would have repayments of £250. Clearly the capital sum needs to be paid off, but in the short term moving to interest only may provide some relief. Their lender is only likely to agree to this if they have a genuine mortgage rather than a secured loan.

Conrad

Sounds like they have a very high rate sub prime deal.

They could look into remortgaging but with arrears the rates will be at least 9%. Shop around lots. I talk to other brokers and find all of them do not deal with every lender. In practise they tend to stear clear of lenders they have not dealt with, which means the very best deals are overlooked.

The cheaper sub prime lenders are the likes of Scarborough BS, Cheltenham & Gloucester, SALT and BM Solutions.

Have they considered just selling the property and buying cheaper, otherwise they may find in a few years they have wasted tens of thousands on high rate mortgages.

Paintpot_2

Well the house is actually on the market........but I dont see it selling anytime soon

They have dropped the price by 100k since it was first put up, and if it doesnt sell now I really cant see it ever selling

We got them to put it up for sale so they could be a bit more comfortable, since there is only the 2 of them living there now they dont need such a big place, and his mum really struggles to keep up with looking after the place on her own (Dad is disabled so cant do very much)

The thing is the longer it goes on without selling the worse it seems to get

We went and spent a good bit of time and money tidying the house up and sorting it out for when it went on the market but I am gradually losing the enthusiasm





Generally will it only be them that can speak to the lenders?
They dont seem to want to call them, liek they are scared of what they will be told, I dont mind calling for them....but I imagine its unlikely the lenders will talk to me about it