parents mortgage

[miss m]

My parents mortgage runs out next june, they will have a short fall of £55000 with no savings to cover this, what an myself and my sister do to help them out, we dont have enough money between us to just give them the funds.

[bednobs]

fifty five thousand pounds is rather a lot!
They will have to get another mortgage surely?

[sara3]

if this is related to a non-performing endowment policy, they'd have had many warnings over quite a few years.

do they work?

[Hymie]

To have a £55k shortfall, either the investment vehicle has performed spectacularly badly – or the house is worth at least £200k and they have around £150k of equity in the property (which is more likely).

Given that your parents will not have sufficient time before their retirement to pay off this amount – they still have a number of options:-

Down size – sell the property and buy another with the equity, and be mortgage free.
Down size – as above, but take out a small mortgage to buy something costing a bit more than the equity alone.
Take out an interest only mortgage for the shortfall amount (allowing your parents to continue to live in the property) – when the house is eventually sold, this amount will be paid off from the proceeds.
Sell the property – invest the equity and rent a property.
Seek the advice of a financial adviser – seeking further options.