J
Jazzjazz
New Member
Hi all,
A family member of mine has a gambling addiction for approximately 3-4 years.
As expected the individual has debts, these total approximately £35,000, in addition to this they have a mortgage on their home. Naturally keeping up with the outgoings had become difficult.
I sat down with this individual and gone through their finances, it turns out on a tight budget they will be left with approximately £400 surplus per month. Relative to the debts, this will take years to clear and incur interest along the way which will reduce the effectiveness of the £400 further.
The individual is a single parent with 4 children aged 20, 13, 14 and 7, the house has 3 mortgage charges all with the same lender, the mortgage is a repayment product and the early repayment charge across all 3 charges is approximately £3,000. I have calculated that if they moved their mortgage to another lender consolidating their mortgages and go onto interest only rather than repayment, their debts can be cleared in approximately 2.5 years.
Now the problem is that this individual has very poor credit rating. What are our options?
We have come up with a plan, this is that if the individual was to gift the property to another sibling who will then get an interest only mortgage this will provide the much needed funds. Once the debts are paid and the individual is clean off gambling the property ownership can be returned
This is a solution that we have with limited knowledge of the legal side of things; however I am keen to know of any other options that may exist.
Thank you for reviewing this post and any input that you may have.
A family member of mine has a gambling addiction for approximately 3-4 years.
As expected the individual has debts, these total approximately £35,000, in addition to this they have a mortgage on their home. Naturally keeping up with the outgoings had become difficult.
I sat down with this individual and gone through their finances, it turns out on a tight budget they will be left with approximately £400 surplus per month. Relative to the debts, this will take years to clear and incur interest along the way which will reduce the effectiveness of the £400 further.
The individual is a single parent with 4 children aged 20, 13, 14 and 7, the house has 3 mortgage charges all with the same lender, the mortgage is a repayment product and the early repayment charge across all 3 charges is approximately £3,000. I have calculated that if they moved their mortgage to another lender consolidating their mortgages and go onto interest only rather than repayment, their debts can be cleared in approximately 2.5 years.
Now the problem is that this individual has very poor credit rating. What are our options?
We have come up with a plan, this is that if the individual was to gift the property to another sibling who will then get an interest only mortgage this will provide the much needed funds. Once the debts are paid and the individual is clean off gambling the property ownership can be returned
This is a solution that we have with limited knowledge of the legal side of things; however I am keen to know of any other options that may exist.
Thank you for reviewing this post and any input that you may have.
