Equity Release question

[Col2]

Looking for any opinions.

My mum remarried 15 years ago but her husband pass e away about two years ago. Just after they remarried she sold her property and moved into his house (which she inherited when he passed away).

Unknown to her at the time she moved in (they were doing some work around the house mainly funded by some of her house sale) he took our an equity release from Prudential for £40k. She recalls some of this and remembers their solicitor advising against it (it’s a terrible product) but didn’t challenge any more. A few years later he took out another £25k when she has no recollection off and is certain she didn’t sign anything.

When he passed away she went through his paperwork and for the first time looked at a prudential statement that said they now owned c£215k (from original £65k loan). 8% fixed interested accumulating with no payments. It’s called a “death” product for good reason as it will take all the equity out of a property unless you pay it back in full and it also has a massive early repayment fee. Terrible product.

I don’t know where to start with it. I feel her husband mislead her and certainly for the additional £25k and potentially fraudulently signed on her behalf. They didn’t get on for last 5 years before he passed away. A truly horrible selfish ******.

Options
1. She is faced with selling her house to repay it and downsizing big time.
2. Me part funding a gap for new house but with interest rates so high now we can’t really afford this.
3. Sell and rent but she is soon going to be 80 so worried this will
Make her j happy

Any views? I feel like I want to contact Prudential to advise I think she was missold. She had plenty of funds to fund house refurbishment and any adviser would have concluded this was not the right product at the time. Not least she can’t recall £25k of loan which with interest probably equates to about £100k. Should I use the solicitor who was originally advising against to contact the Prudential? Would a financial advisor come up with a more creative product either to transfer or part transfer.

It’s a ticking clock as gets worse every year.

Cheers

[Mon Dieu4]

If the mortgage is in joint names then you won't need to repay anything while your mum is still alive, it should be only when she passes away that the loan needs repaid, usually from the sale of the property unless you have another way of paying them off

if they are asking for it to be repaid now then it sounds like it was in his sole name to me

I'd speak to the Prudential first off and try and find out as much as you can, you could advise that you feel that the product was miss-sold to them, I'd probably also submit a DSAR request which means they need to provide you with all the information held on your mum and the account(application forms, agreements etc) that might give you some kind of clue as to if he did it fraudulently etc

I'd still probably run it by a solicitor as well

[Col2]

If the mortgage is in joint names then you won't need to repay anything while your mum is still alive, it should be only when she passes away that the loan needs repaid, usually from the sale of the property unless you have another way of paying them off

if they are asking for it to be repaid now then it sounds like it was in his sole name to me

I'd speak to the Prudential first off and try and find out as much as you can, you could advise that you feel that the product was miss-sold to them, I'd probably also submit a DSAR request which means they need to provide you with all the information held on your mum and the account(application forms, agreements etc) that might give you some kind of clue as to if he did it fraudulently etc

I'd still probably run it by a solicitor as well

Thanks. Good advice. To confirm they are not asking for repayment and looks in joint names. She wants to move at some point t but is seeing her remaining equity disappear. I reckon in 5 years time it will have at best £75k equity left.

[Mon Dieu4]

Thanks. Good advice. To confirm they are not asking for repayment and looks in joint names. She wants to move at some point t but is seeing her remaining equity disappear. I reckon in 5 years time it will have at best £75k equity left.

Aye, they are horrible products, I've had many a run in with people I worked with about them, they are unethical and will be the next PPI scandal when more people find out about them

Hope it all gets sorted out

Should also add in that depending on when they took it out that there are other mortgage companies that offer equity release these days and you might be able to switch to a better more favourable deal or the prudential themselves might be able to offer her better as it's more regulated these days