Father has left Mother and Interest Only Mortgage Issue

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My mother (57) and father (58) have very recently unexpectedly seperated. My father called time on their marriage (together 41 years) and has moved out (currently do not know where he is staying). My mother is left in the property. My mother is unable to work due to various illnesses and has not worked for some years, my father has always been the main earner. A number of years ago they were struggling financially and changed their mortgage to an interest only mortgage, this was meant to be temporary but alas, they did not change it. My mother is now in a panic at a) covering the mortgage payment (c£650) and bills and b) when the term expires in 5 years paying off the main debt (around £125k). There is not enough equity to sell the house, repay the mortgage and secure even a flat for mother. She currenly receives a small amount of (I believe) PIP but has never pushed for any other support because she has always had my Father and didn't believe in taking what was not 'needed', however now she is in need. She is really struggling mentally and is very very low, and it is a struggle to get her to see the wood for the trees. I am in a rented property and do not have any means to help her. She has no other family. I have looked at equity release but I don't think she is able to do this due to the current L.T.V of the current mortgage. Does anyone have any suggestions? I am not familiar with benefits, could she claim universal credit without having any dependents at the property? She has no savings. I have already advised her to claim the reduction in council tax as she is a single occupier. I live three hours from her and I'm struggling to help from afar. Does anyone have any suggestions?

Assuming no savings or less than £16,000 in savings then Universal Credit for sure. She'll need to tell them about her health conditions and once she's given them a 'fit note' they will start an assessment of her capability to do work or work related activity.

She'll get approx £425/month for living expenses. Being on UC will get her a discount on Council Tax. As you say she should apply now for the 25% discount as she's living alone.

A conversation with Help to Claim, perhaps with your support, will be a good start point on Universal Credit.

She might get help with water charges too https://www.ccw.org.uk/save-money-and-water/help-with-bills/.

Assuming your Father has gone for good she needs advice on the matrimonial situation. Citizens Advice would perhaps be a good place to start. Their website has plenty of information on relationship breakdown.

DWP can provide support with the interest on the mortgage but I think there might be a delay before they will do that - Google Support for Mortgage Interest. A conversation needs to be had with the mortgage lender so they are in the loop and can potentially give short term easements on payments.

How long have they been married? What joint savings, ISA, shares etc if any, do they hold? What about pensions?

Can she take in lodgers ?
Monday to Friday ones would give her some space at weekends
If there is a hospital near her she could have students on placements, or newly qualified staff. They automatically have a DBS, so that might be reassuring to her.
Worth a call to staff accommodations to see if this is possible

Thank you all. To answer some questions, been together 41 years and married 27. I believe father has work place pension but otherwise none. Neither are particularly financially savvy. No savings, ISAs etc.

What names are on the mortgage? What names are on the deeds?

If they have been married a long time, and she was a SAHM , she would likely be entitled to half or a share of his pension. If he worked and pain in all his working life so far this could be significant.
Your father would be entitled to half the equity in the home I expect.
I wonder if ChatGPT can help with looking at options and benefits. The website entitled to can be helpful.

Your parents are still young. As others PP has asked, what's the situation with the house, commonly the property is sold, unless one buys the other out.

Why is your dad not paying at least half of the mortgage?

Do you think there is another woman and he has moved in with her?

The property is held as joint tenants and my father is still paying a proportion of his wage into to the joint account to ensure the mortgage (interest only) payment is made. He has told my mother he is walking away and will ‘leave her everything’ although at the moment that is a ticking time bomb around her neck. I suspect another woman is involved. I am a Conveyancer by trade so can help with property aspects but pension/benefits etc I am clueless unfortunately. Thank you for all help so far.

They live in a small village, and she cannot drive due to her medical issues. They do have a private care home a short walk from their home so lodgers would be a good call. I found out that shortly after my dad left she did try to take her life with prescription medication. It’s all a bit of a mess.

Have you spoke to your dad?

Is the £650 the mortgage payment alone or the amount including bills?

Just checking because that would suggest quite a high interest rate so it could be they've gone back to repayment but not realised - it sounds like they have a lot on their plates and are not financially savvy.

But in any case it sounds like the best thing would be for them to put the house up for sale and your DM to see if she can find a council or HA flat for the over 55s, these often have lower demand and waiting lists than houses available to everyone.

I would have thought that with a PIP entitlement it would indicate that she's less able or unable to work so she should be entitled to UC which would help with rent if she ends up with little or no savings. Look on turn2us or entitledto for an idea of what UC she might get.

Almost exactly the same thing happened to my MIL. although she was older. She was able to claim benefits (incl housing benefit which paid the interest only mortgage). She was in very poor health and couldn't work and had no savings etc (although she was eligible for 50% of FILs pension, which he was claiming by then). Tough but she managed. The mortgage company just let her continue to live in the house and pay the interest portion on the basis the mortgage would be paid off when she died and it was sold.

I would suggest the first stop should be CAB - they were brilliant with helping MIL claim everything she was entitled to.

I also suggest a lodger. I had one 20 years ago and we're still good friends today. Helped financially too.

Would she be better off selling the house to repay the mortgage and then renting? As universal credit can cover rent but not a mortgage. If she really has no hope of working to be able to pay it off. I am no expert in any of this though so just a question to look into rather than advice!!

Seems to me she should get proper professional help with the divorce though - he can’t just walk away keeping his pension savings and leaving her the debt!

The best thing you can do to help your mum right now is book an hour long appointment with a family solicitors and go with her to the meeting. It will cost a few hundred but it’s absolutely worth it (having been in a similar position). I bought a friend along and she asked most of the questions whilst I was sobbing as I was so shellshocked. I have since done the same for a friend.

Set out her situation with all of the facts as they are now. Write down a list of questions and scenarios that you’d like to ask about. Go with her as she’s likely to feel vulnerable and emotional. You don’t have to tell anyone else. It’s simply informing yourself (her) about the options out there. She probably feels quite powerless and vulnerable now and this will help her create some sort of plan. Do this asap and it will help her/ you start to form some sort of plan.

Also concurrently go to the benefits calculator as some others have said. If you are willing to be with her through this kind of thing then she’ll appreciate it a lot I am sure.

There absolutely will be a solution out there but it’s hard to see through it until the dust has settled and you arm yourselves with more facts/ information.

Oh and just to add.. I have had lodgers for years now in my spare room. Once you get your head round it (as I know it would seem like a huge shift in life and not one she planned for) then you realise that it’s a really helpful source of added income that could cover the mortgage and if she gets the right person could help her feel less lonely. In time maybe.

@Bjorkdidit slightly off topic but you think £650 pm is high!? I suppose it depends on type of property and location but that would definitely not be high from my perspective.

What is the value of the house and the equity? Could she sell up and move closer to you? Is there a cheaper area your mum could buy, or she could consider a shared ownership property.

I don't have any helpful advice but want to express my sympathy to you and your mother for being in this situation. It's really awful, especially since your parents must have been together since they were in their teens. Your father has indeed left her 'everything' - lots of problems and nothing else.

You've mentioned your mum's home being a short distance from a care home & the possibility of lodgers. I'm unsure if you are thinking of her taking in staff from the home or visitors? We have a very elderly relative in a care home, quite a distance from everyone else (tbf we are scattered around the UK) and we have to stay in a b&b etc when we visit her: would that be an option for your mum?

Hi OP, I'm sorry you're having to deal with this - it sounds monstrous, even without the money aspect.

My advice would be to do a full money MOT on what's currently going in and out so you know what she's currently recieving and then you can Google/Citizen's Advice/ChatGPT what else she might be entitled to. It's possible she's also paying much more than necessary on all her bills (council tax as previously mentioned, many times over the odds for internet/phone, unfixed energy etc). The first time Dad let me do his accounts for him (I now have a look every year) he had a direct debit for £100 a month for internet in is old house he hadn't cancelled. They'd kept increasing it as he'd never renegotiated/switched and he had no idea. He's a pensioner who doesn't have masses of income but had just never looked at his bank statements. Knowing what the situation is is half the battle

It's high for someone in their late 50s with a property that's worth little more than a £125k mortgage. It sounds like you're a decade or two younger and your property is worth considerably more so not comparable circumstances.

@Bjorkdidit i wasn’t trying to be confrontational… I was genuinely surprised and asking. But yes you’re right I am younger and house prices will have risen since they first invested in theirs, so that does make sense thank you. I took the £125k to be the amount left to pay not necessarily the value of the initial borrowing and so maybe I got that wrong.

Legal advice on separation and Citizens Advice are best in my opinion. The legal advice initially won’t cost much as they will explain the facts. Best you go with your Mum.

If the house is suitable for a lodger that could be the quickest route to some money coming in. On the rent a room scheme she can earn £7,500 a year with no tax and I believe it’s not considered income for UC purposes. That could go a long way to paying bills/whatever of the mortgage DF is not currently paying. From a legal standpoint there are few requirements when taking in 1 lodger so no rules for fire doors etc which would be the case for B&B/short term holiday let or once you have 2 lodgers which tip things into licensed or unlicensed HMO depending on the council. Rights wise, a lodger agreement can be cancelled with a couple of weeks notice so no long term issues if things don’t work out. It could be company for her and possibly a bit of help in the future if the right person is found.