Hello All
[:D]
I'm a bit premature with this(these) question(s) as it’s probably still a good year or so off, but my parents are in a bit of a bind (or potential bind) housing wise….
My folks (Dad age 57 and Mum age 67 – D is on disability due to a terminal illness which is being managed at the moment and M still works in a low paid job to pay the bills) are currently in a great deal of debt (CCards) which they are slowly paying off. This means late payments on their interest only mortgage (of which they only have @8 years remaining – with only @30 thousand equity – most probably never be able to get another mortgage – interest only or otherwise – they are also continually in their OD with the bank) and potentially facing homelessness in the future.
They seem to be living a little in fantasy land of when the time comes they think they’ll be able to get a retirement bungalow from the council (even though in my view if they manage to sell the property I think they would be classed as making themselves intentionally homeless, even though I don’t think they’ll have much choice).
So, my questions are –
1: what are the chances of them renewing their interest only mortgage with the mortgage providers (both on low/no income with very basic pensions)?
2: saying they can’t get a mortgage, would they be eligible to apply for council housing?
3: I live in a 1 bed housing association property with an occupancy limit of 2 people. If I really had to put them up, how long grace do you think my housing association would give me with the over occupancy issue?
Many thanks for any help/advice you could give me….
1 I would say this would be very difficult. Mortgagees are looking to move away from interest only mortgages, and given your parents' ages they will want to see some form of repayment vehicle. But best that they take specialist financial advice on this from someone qualified to provide it.
2 It would depend upon the policy of the local authority, but again this is something which could be explored at an early stage.
3 It would depend upon the policy of your local housing authority, but if your parents' sold their property would they not be able to afford rented accommodation?
What are they intending to do with regard to their unsecured creditors over the longer term?
Mum is actually managing to pay the CCs off (over the past 6 years she's paid off a whooping £60,000 - mainly by a mixture of robbing peter to pay paul and dragging me out of bed at 4am at the weekend to do bootsales). They owe @£25,000 now, so in reality over the next couple of years they could be out of the way (although she can't keep working, so retirement looms within the next 2 years max - as she's a cleaner and realistically can't keep it up for ever).
My housing association have mentioned that they don't really do anything until someone mentions to them you have loads of people living there (so in theory it would be a neighbour ratting me out more than anything and I'd have to pay full council tax - I currently get the single person discount).
I've spoke to the council and they basically said in their view they would be "intentionally making themsleves homeless by way of selling their property", BUT... they did make mention of the fact my dad has a (potentially) terminal illness. But they can only make that call when they make the applciation or at least contact them. AgeUK are my next stop for advice.
Their mortgage is currently @£192,000, with a property value of potentially £260,000 - so I am drastically under estimating their equity at £30,000 (just to be on the safe-side). I have offered to get a mortgage on the property myself (my salary is £40,000 per year) but I'm guessing the most I could get is a mortgage of £160,000, so I think that ones dead in the water (and quite frankly I'd still be living in my own property with the housing association, so having to pay those bills as well).
I agree with you Mel, I think it's totally out of the question that they will get a mortgage again.
Could you move in with them to share the costs and help them to clear their debts earlier, or would this not work in reality. I live with my elderly Mum, and thank goodness we all have separate rooms or else I think murder could be committed some times!!! (Only joking folks!)
I did offer to possibly look into purchasing a smaller place for them (something more within my price range and more suitable for them) but I just don't think they were interested.
I think by late next year the CCs will all be out of the way, so they'll just have the mortgage (at the moment I'm helping them occasionally and that seems to be getting them through the real bad periods). The place they are in has 2 fair sized bedrooms and one box room ( and I'll be in the box room)... so sharing a place wouldn't be possible at the moment.
I've just been into AgeUK and they've said that the only route open to them is private renting, and that's just far to expensive.
Heyhoo... it's all fun
(and Melanie... yes... I know exactly what you mean... my folks drive me crazy at times but I wouldn't have them any other way).
What if they took a lodger in ... Would support with some of the household bills and allow them to pa off the debt quicker ? Not ideal for everyone but may work
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I hope you can sort something out - it must be very worrying for all of you.
Regarding taking in a lodger, if they do decide to go down that route please be careful. My Mum did this after my Dad died and, even though it was done officially through a council scheme, one lodger did a flit without paying the rent and another one disappeared for a couple of days and it turned out he had been arrested! I know it can work but please, please be careful.
My sister currently lives with them and quite frankly does little if anything to help (well.... she gives them £200 per month, so something is better than nothing).
