Hi,
My Dad at the age of 60 bought his house under the right to buy scheme. He was given a 10 year mortgage and he is now 68 and so this mortgage has to be repaid in 2 years. The mortgage was an Interest only mortgage and so the 100k has obviously never gone down. The mortgage itself was a cash back mortgage and he used the cash to 1) pay off some debt and 2) replace the kitchen and bathroom etc....the house is worth about the same as the mortgage.
I have only found out about all of this now because he has had some ill health last year ( heart attack) and I have begged him to retire. He now tells me he can't stop working full time (often working 60 hour weeks) because he can't afford the mortgage and bills). I have now realised its an interest only mortgage and that he has no way if paying this back. I presume then in 2 years the house may get repossessed and therefore he has worked for all these extra years for nothing to achieve at the end other than bad health .
I am well aware of the stupidity of this whole situation as he was financially much better off remaining a tenant and retiring at the correct age but its done now and I know the house will need to be repossessed, however I thought I might throw it out there to everyone and see if there is anything we could do so he doesn't loose his home. Personally I'd walk away but maybe it's his age but he just seems more upset to not live in this house for the rest of his life than the actual money issues.... Any decent advice would be gratefully received.
My Dad at the age of 60 bought his house under the right to buy scheme. He was given a 10 year mortgage and he is now 68 and so this mortgage has to be repaid in 2 years. The mortgage was an Interest only mortgage and so the 100k has obviously never gone down. The mortgage itself was a cash back mortgage and he used the cash to 1) pay off some debt and 2) replace the kitchen and bathroom etc....the house is worth about the same as the mortgage.
I have only found out about all of this now because he has had some ill health last year ( heart attack) and I have begged him to retire. He now tells me he can't stop working full time (often working 60 hour weeks) because he can't afford the mortgage and bills). I have now realised its an interest only mortgage and that he has no way if paying this back. I presume then in 2 years the house may get repossessed and therefore he has worked for all these extra years for nothing to achieve at the end other than bad health .
I am well aware of the stupidity of this whole situation as he was financially much better off remaining a tenant and retiring at the correct age but its done now and I know the house will need to be repossessed, however I thought I might throw it out there to everyone and see if there is anything we could do so he doesn't loose his home. Personally I'd walk away but maybe it's his age but he just seems more upset to not live in this house for the rest of his life than the actual money issues.... Any decent advice would be gratefully received.