Hi
This is my first posting and have an unusual scenario. My 83 year old father has been taken ill and moved out of his house into a nearby nursing home. The funding is paid for by the local PCT bless them.
He moved into the house about 4 years ago and secured a loan through a high street bank that needed no repayments until he passes away.
As things stand at the moment, his debt is around 140k and it increases by around £850 per month, and this will rise to around £900 a month by the end of the year.
There is sufficient equity in the house (around 475k) to repay the outstanding amount so I am just trying to work out what is the most advantageous position.
He has pockets of cash dotted around of about £20k which I have access to. That would still leave room for funeral payments to be made without selling the house etc.
My query is this: Is there any advantage in paying off some of the debt using his liquid cash and would this save any money in the long run.
The prognosis from his doctor is that he may survive 3 months/ 1 year who knows.
I don't think there is any penalty charge for paying off a small sum but would need to check this. But if there wasn't, does anyone have any suggestions please.
many thanks
This is my first posting and have an unusual scenario. My 83 year old father has been taken ill and moved out of his house into a nearby nursing home. The funding is paid for by the local PCT bless them.
He moved into the house about 4 years ago and secured a loan through a high street bank that needed no repayments until he passes away.
As things stand at the moment, his debt is around 140k and it increases by around £850 per month, and this will rise to around £900 a month by the end of the year.
There is sufficient equity in the house (around 475k) to repay the outstanding amount so I am just trying to work out what is the most advantageous position.
He has pockets of cash dotted around of about £20k which I have access to. That would still leave room for funeral payments to be made without selling the house etc.
My query is this: Is there any advantage in paying off some of the debt using his liquid cash and would this save any money in the long run.
The prognosis from his doctor is that he may survive 3 months/ 1 year who knows.
I don't think there is any penalty charge for paying off a small sum but would need to check this. But if there wasn't, does anyone have any suggestions please.
many thanks