Posting here for traffic. Will try to keep this short.
DPs were rubbish with money when my siblings and I were kids. As a result, they found themselves in massive debt a few years back and had to take out an IVA to pay off their debts. To their credit, they've done amazingly well and will have paid off the lot - £50k - within the next few months. Obviously though, the IVA will show on their credit rating.
Now the main problem is they have an interest only mortgage and the term ends next year. They have no means of paying it off so will have to sell up. They spoke to their lender to see if there were other options but the best they could offer is to agree to give them a little extra time to sell. They are in their 60s and only earn about 35-40k between them.
My worry is how the hell they are going to afford somewhere else to live? We think they'll get about between 50k -70k profit from the sale but their age, income and the fact they've had an IVA means they almost certainly won't get another mortgage. They think their only option is to rent which they don't want to do (I don't want them to either).
I've looked into those Home For Life schemes where a company buys a house at a discount for you but you put down a deposit. It means they'd have no money to leave as inheritance (as the company keeps the profit from the sale once they die) but none of us gives a stuff about that - we just want security for them.Unfortunately they're not old enough to get a big enough discount.
What other options are there? I'm worried they're going to end up in an extortionate, tiny rental they neither want nor can afford.
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To wonder how my parents will afford a home?
88 replies
Chocwocdoodah · 19/12/2016 20:12
OP posts:
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