Elderly relative - sold off mortgage - help!

ShoesmithRay23

Hi,

Looking for some info for a relative who has recently retired and has at the same time come into financial trouble with their mortgage.

Long story short, their mortgage was sold by the bank for underperformance and while originally manageable, the rates set by those who have bought it far exceeds that set by main lenders and recently the entire thing has spiralled beyond affordability.

With my help financially, an offer has been made amounting to roughly 75% of the total owed but this was rejected and the tone from the institution (who advised me to make an offer originally) has changed to now deciding that the full amount would need to be paid (mortgage payments continued or the sale of the property pushed).

My relative can sell the property to cover the amount owed but the amount remaining from any sale after what is owed is covered would not be enough for them to purchase a smaller property or live on in the current rental market.

Are there any organisations or avenues that can be taken here to provide sound advice for all involved here? We have been looking at financial advisors but they all tend to provide advice for positive financial situations and not the opposite.

Grateful for any advice or past experience you may have.

Thanks.

CPTM

Can you extend the term with the new institution to reduce the repayments?

Jim2007

What exactly are you expecting to achieve?

From your post it seems that there is sufficient equity in the property to cover the mortgage so there is no reason for the financial institution to accept anything less.

Mrs OBumble

MABS is the place to start.

There are a range of options available, including some Mortgage to Rent schemes which see people stay I the house but become council tenants. There are specialist advisors for these schemes, who vary around the country.

Peregrinus

What Mrs O'Bumble said. You want MABS; advising people in situations like this is their core business, and their service is free.

Henry Ford III

A P.I.P. might be able to help. They aren't free however.