Mortgage Advice
Discussion
I am currently the guarantor on my parents mortgage, but due to changing circumstances I need to relinquish these duties. I have been told that I will need to consult a solicitor as it is a legal matter.
Does anyone have any experience of this and can they offer any advice and guidance as to what is involved etc?
TIA
Mick
Does anyone have any experience of this and can they offer any advice and guidance as to what is involved etc?
TIA
Mick
Thanks Tonker,
Mum is on her own and 79 years old so i think the bank will still want a guarantor. I've been trying to convince her to pay off the mortgage instead of sitting on her savings which she is frittering away. The mortgage is the endowment type and the endowment is, like most performing very badly.
Are there age limits on guarantors etc?
Mum is on her own and 79 years old so i think the bank will still want a guarantor. I've been trying to convince her to pay off the mortgage instead of sitting on her savings which she is frittering away. The mortgage is the endowment type and the endowment is, like most performing very badly.
Are there age limits on guarantors etc?
For what it's worth.
My father guaranteed my first mortgage, as I was under the threshold. As soon as my wages got above the threshold it was simply a matter of proving that to be the case to the bank, signing a couple of forms and that was it. Different to your case, but there were no solicitors involved in getting my dad removed.
My father guaranteed my first mortgage, as I was under the threshold. As soon as my wages got above the threshold it was simply a matter of proving that to be the case to the bank, signing a couple of forms and that was it. Different to your case, but there were no solicitors involved in getting my dad removed.
FrenchTVR said:
Thanks for all the replies, they were along the same lines as my sister and I had discussed. I have just had a 'conversation' with Mum about it and she doesn't like the idea a lot. Likes the fact that I won't be guarantor even less! Still such is life.
Thanks again.
Mick
Tell her to stop frittering money then
Incorrigible said:
It's her money isn't it ??
Spend it how she likes I reckon
Which is fine but leaves us with a large debt to pay, which was not part of the original agreement made when his Dad was alive, and means we are limited with the amount we can now borrow.
>> Edited by wedge girl on Thursday 9th December 17:01
She doesn't have an endowment, we do, at best it might just pay back what we put in, which is less than half the mortgage.
To top it all one of the conditions was that they should have had a life insurance policy to cover the debt, but it now turns out there isn't one.
She understands that the money she has invested is making less than the amount she is paying in interest.
Unfortunately there seems to be another family member giving her very different advice, we suspect that a large sum of money has already been transfered in this direction.
To top it all one of the conditions was that they should have had a life insurance policy to cover the debt, but it now turns out there isn't one.
She understands that the money she has invested is making less than the amount she is paying in interest.
Unfortunately there seems to be another family member giving her very different advice, we suspect that a large sum of money has already been transfered in this direction.
Mick/Wedgegirl
To confirm some of the points already and some alternatives:
o Unless there is an alternative repayment source it is unlikely the bank will release the guarantee.
o What is the cash in value of the endowment? Can it reduce the loan sufficiently if cashed in to allow bank to release or you/sister to repay?
o Can you mum re-mortgage to a provider that provides lump sum now and allows her to remain in the property. If sufficient lump sum she can repay the current loan and give her more cash to fritter away or give to you to spend on wedge!
o Can she sell/downsize?
Just some thoughts
Richard
To confirm some of the points already and some alternatives:
o Unless there is an alternative repayment source it is unlikely the bank will release the guarantee.
o What is the cash in value of the endowment? Can it reduce the loan sufficiently if cashed in to allow bank to release or you/sister to repay?
o Can you mum re-mortgage to a provider that provides lump sum now and allows her to remain in the property. If sufficient lump sum she can repay the current loan and give her more cash to fritter away or give to you to spend on wedge!
o Can she sell/downsize?
Just some thoughts
Richard
Thanks for those points Richard, we have explored all of them to no avail.
She has enough cash to pay the debt but wont.
Another "offer" has been put on the table, someone else pays the debt in exchange for a 52% share of the estate. Whilst this then release us from out commitment it means changing the existing will, now for me thats a no no as it would mean changing the wishes of someone now deceased.
Bl00dy endowment mortgages.
She has enough cash to pay the debt but wont.
Another "offer" has been put on the table, someone else pays the debt in exchange for a 52% share of the estate. Whilst this then release us from out commitment it means changing the existing will, now for me thats a no no as it would mean changing the wishes of someone now deceased.
Bl00dy endowment mortgages.Ok - not sure of the details of the current will but if, and presumbly, only if you and your sister were the beneficiaries of say the majority of your mothers estate, could she gift you the property now providing a greater asset base for you to borrow against. You allow her to stay in the property for a 'rent' (no more than she pays now but covers the loan and because you are younger can take over longer term to make affordable).
The other benefit being that if she (forgive me) outlives the gift for 7 years it is free from inheritance tax (if applicable)
The other benefit being that if she (forgive me) outlives the gift for 7 years it is free from inheritance tax (if applicable)
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