Hi all - advice and opinons would be greatly appreciated.
We have just discovered that OH's parents have a mortgage of almost £40,000. They took this out when they were 65 & 63 over a 10yr repayment period and this still has 7years to run and the 40k is the outstanding balance.
I'm assuming it was a ridiculous interest rate because of their age but they can no longer afford the repayments as SURPRISE, their circumstances have changed. One no longer has a job and the other would like to give up their job but cannot until the mortgage is sorted as they need the income to survive.
They have no way of paying off the mortgage, no other likely income etc so are looking at equity release as their only option.
They have plenty of equity in the h ousebut they don't want to move.
We don't want them to do this because 40k in 10years will be 80k (or thereabouts) and I worry that they will need to move at some point in the future as the house may not be suitable for one or both of them in the future.
Anyway, question I'm asking is... How easy would it be for us to take on the mortgage on an interest only basis? We couldn't afford their current repayment option but could afford interest only. We have plenty of equity in our own home but would want to seperate all of this. We also will have means to pay off the lump sum in around 9/10 yrs time if necessary.
I'm assuming we'd need to get them to agree to joint ownership of the property?
We obviously need to get proper independant advice but thought I'd sound out this forum for views, knowledge first as we're a bit overwhelmed..... and angry.
It seems wrong to sell a mortgage like this to people their age when they need to be in employment to stand any chance of paying it back. Not to mention ridiculous to take out a mortgage in these circumstances.:mad:
We have just discovered that OH's parents have a mortgage of almost £40,000. They took this out when they were 65 & 63 over a 10yr repayment period and this still has 7years to run and the 40k is the outstanding balance.
I'm assuming it was a ridiculous interest rate because of their age but they can no longer afford the repayments as SURPRISE, their circumstances have changed. One no longer has a job and the other would like to give up their job but cannot until the mortgage is sorted as they need the income to survive.
They have no way of paying off the mortgage, no other likely income etc so are looking at equity release as their only option.
They have plenty of equity in the h ousebut they don't want to move.
We don't want them to do this because 40k in 10years will be 80k (or thereabouts) and I worry that they will need to move at some point in the future as the house may not be suitable for one or both of them in the future.
Anyway, question I'm asking is... How easy would it be for us to take on the mortgage on an interest only basis? We couldn't afford their current repayment option but could afford interest only. We have plenty of equity in our own home but would want to seperate all of this. We also will have means to pay off the lump sum in around 9/10 yrs time if necessary.
I'm assuming we'd need to get them to agree to joint ownership of the property?
We obviously need to get proper independant advice but thought I'd sound out this forum for views, knowledge first as we're a bit overwhelmed..... and angry.
It seems wrong to sell a mortgage like this to people their age when they need to be in employment to stand any chance of paying it back. Not to mention ridiculous to take out a mortgage in these circumstances.:mad: