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Should I help my parents out by giving them money for mortgage?

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    #32
    alig123aileen
    Banned (with Prison Access) Posts: 117 ✭✭alig123aileen


    Fair play to you for helping your parents as most people would want to do. I know you rang your bank about reducing amount outstanding in favour of immediate payment and they laughed you out of it. This is not a formal request you must put in it writing to them. At your parents age the Financial Regulator would frown at any bank giving your parents a loan where repayments were past age 70 (they are deemed to be 'vulnerable people') and there are very strict rules about this so your parents are informed of this at the outset and have to sign saying they did not receive any advice in this regard from the bank (this is called 'execution only' and they must sign up to this however banks have been hit with thousands of claims where they did not get 'vulnerable persons't o sign up to this clause). It is up to the bank to prove they highlighted the risks to your parents and to show documentary evidence that they did and that they complied with the Regulator rules. I would talk to your parents and see if they are happy to write to the bank and ask for a copy of the 'Know your customer Documentation' and application form they signed for this loan and the financial statements they completed in order for the bank to consider the loan . Also ask them for a copy of the audio call you made to them asking them to accept a reduced payment. Say you intend to take your case to the Financial Services Ombudsman. Conclude in the letter that you do not need above if they will consider an immediate payment in full and final settlement of the mortgage. I wouldn't mention 25k as they may settle for less! I think you will find they will be very anxious to sort the matter. I have background in Financial Services Compliance and Legal so I am happy to help you with drafting the letter or talking to your parents or any way you think I can help. I don't charge for this service just PM me on boards.ie. I have helped over 100 people with bank debt and other debts and in almost all cases have ben successful. I empathise fully with the awful situation you and your parents find themselves in and its great they have your support. My dad died age 63 because of the stress of debt from a bank. The banks are simply not worth it and when challenged in a professional comprehensive knowledgeable way and when they know the documentation is not in place to cover them off I think you will find they will back off and concede very quickly. And on a separate note I abhor those who come on boards.ie just to judge attack and not to respond in a meaningful helpful empathic way. This 'Wild Atlantic Rage' that permeates our country especially online must be I believe challenged at every juncture. I hope whatever decision you make is the right one to safeguard your parents health and longevity.


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    #33
    pilly
    Banned (with Prison Access) Posts: 9,005 ✭✭✭pilly


    alig123aileen wrote: »
    Fair play to you for helping your parents as most people would want to do. I know you rang your bank about reducing amount outstanding in favour of immediate payment and they laughed you out of it. This is not a formal request you must put in it writing to them. At your parents age the Financial Regulator would frown at any bank giving your parents a loan where repayments were past age 70 (they are deemed to be 'vulnerable people') and there are very strict rules about this so your parents are informed of this at the outset and have to sign saying they did not receive any advice in this regard from the bank (this is called 'execution only' and they must sign up to this however banks have been hit with thousands of claims where they did not get 'vulnerable persons't o sign up to this clause). It is up to the bank to prove they highlighted the risks to your parents and to show documentary evidence that they did and that they complied with the Regulator rules. I would talk to your parents and see if they are happy to write to the bank and ask for a copy of the 'Know your customer Documentation' and application form they signed for this loan and the financial statements they completed in order for the bank to consider the loan . Also ask them for a copy of the audio call you made to them asking them to accept a reduced payment. Say you intend to take your case to the Financial Services Ombudsman. Conclude in the letter that you do not need above if they will consider an immediate payment in full and final settlement of the mortgage. I wouldn't mention 25k as they may settle for less! I think you will find they will be very anxious to sort the matter. I have background in Financial Services Compliance and Legal so I am happy to help you with drafting the letter or talking to your parents or any way you think I can help. I don't charge for this service just PM me on boards.ie. I have helped over 100 people with bank debt and other debts and in almost all cases have ben successful. I empathise fully with the awful situation you and your parents find themselves in and its great they have your support. My dad died age 63 because of the stress of debt from a bank. The banks are simply not worth it and when challenged in a professional comprehensive knowledgeable way and when they know the documentation is not in place to cover them off I think you will find they will back off and concede very quickly.

    Absolutely brilliant idea and excellent points. My own father lost 25k in BOI shares because he was talked into them by someone in his local branch. Stress of it still affects him to this day.

    He refuses to do anything about it even though I genuinely feel they were way out of order to sell them to him when he'd no knowledge of financial instruments.

    He just doesn't want the embarrassment of admitting he hadn't a clue what he was doing.


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    #34
    daheff
    Registered Users Posts: 5,853 ✭✭✭daheff


    Fair play to you OP. Its a nice thing to want to do to help your parents out.


    As I see it, you have a couple of options


    1- Lump sum payment off mortgage. Then this either reduces the term or reduces the repayment amount. If it were me, i'd look to reduce the monthly repayment (save the extra each month vs current repayment & use that to make another lump sum in a couple of years).

    2-Use the annual threshold of 3K tax free to gift your parents (each) and let them use that to pay monthly repayments. ***Some agreement would need to be made with your sibling that the first 25k of the proceeds of sale of property goes to you, though. Kicker here is that there may be some conflict then with revenue over the annual gift.

    Just remember once the money is repaid to the bank it wont be loaned back to your parents. So make sure that everything isn't paid back straightaway to the bank as you'll have no rainy day fund left.


    On a side note, I'd be querying with the Financial Services Ombudsman about the bank loaning money to your parents until they are 72. How does the bank expect them to repay the loan when they are in retirement? It would seem highly unusual (& suspicious) to have a loan like that.


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    #35
    lawred2
    Registered Users Posts: 24,314 ✭✭✭✭lawred2


    nhunter100 wrote: »
    You feel you're dad's life maybe shortened by the mortgage, yet you're dithering whether you should help or not. Un*******believe able. I can't believe the priorities of some people in this world.

    :rolleyes:


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    #36
    daheff
    Registered Users Posts: 5,853 ✭✭✭daheff


    alig123aileen wrote: »
    This is not a formal request you must put in it writing to them. At your parents age the Financial Regulator would frown at any bank giving your parents a loan where repayments were past age 70 (they are deemed to be 'vulnerable people') and there are very strict rules about this so your parents are informed of this at the outset and have to sign saying they did not receive any advice in this regard from the bank (this is called 'execution only' and they must sign up to this however banks have been hit with thousands of claims where they did not get 'vulnerable persons't o sign up to this clause). It is up to the bank to prove they highlighted the risks to your parents and to show documentary evidence that they did and that they complied with the Regulator rules. I would talk to your parents and see if they are happy to write to the bank and ask for a copy of the 'Know your customer Documentation' and application form they signed for this loan and the financial statements they completed in order for the bank to consider the loan . Also ask them for a copy of the audio call you made to them asking them to accept a reduced payment. Say you intend to take your case to the Financial Services Ombudsman. Conclude in the letter that you do not need above if they will consider an immediate payment in full and final settlement of the mortgage. .

    Do not say this to them. This could be construed as blackmail.

    Either press ahead with the FSO or not, but don't threaten it if you don't get your way.


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    #37
    Koptain Liverpool
    Closed Accounts Posts: 505 ✭✭✭Koptain Liverpool


    nhunter100 wrote: »
    You feel you're dad's life maybe shortened by the mortgage, yet you're dithering whether you should help or not. Un*******believe able. I can't believe the priorities of some people in this world.

    Read the bloody thread before making foolish posts.


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    #38
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    Koptain Liverpool wrote:
    Read the bloody thread before making foolish posts.

    I did read it thanks for your input.


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    #39
    Koptain Liverpool
    Closed Accounts Posts: 505 ✭✭✭Koptain Liverpool


    nhunter100 wrote: »
    I did read it thanks for your input.

    Did you?

    Right then.

    You accuse the OP of 'dithering' about whether or not to help his parents:
    Please identify which of his posts display this.

    The OP is asking for advice about the best way to go about helping his parents: Yet you "can't believe the priorities of some people in this world"


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    #40
    Mezcita
    Registered Users Posts: 2,328 ✭✭✭Mezcita


    Killergreene wrote: »
    25k is nothing. If ye think that is big money lads ye are living in the clouds.

    Good for you Jay Z.


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    #41
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    Koptain Liverpool wrote:
    You accuse the OP of 'dithering' about whether or not to help his parents: Please identify which of his posts display this.


    Quite simple actually, again I repeat he refers to the possible shortening of his father's life but shows imo more concern in protecting his 25k . Personally if I felt my parents were under such stress I would have helped them already instead of seeking the opinion of randomers on the internet but that's just me. You take care now.


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    #42
    Koptain Liverpool
    Closed Accounts Posts: 505 ✭✭✭Koptain Liverpool


    nhunter100 wrote: »
    Quite simple actually, again I repeat he refers to the possible shortening of his father's life but shows imo more concern in protecting his 25k . Personally if I felt my parents were under such stress I would have helped them already instead of seeking the opinion of randomers on the internet but that's just me. You take care now.

    It's not quite simple though is it. It's not like his parents need the money tomorrow for a life-saving operation.

    Are you saying that he has no right to seek advice about the best way to help his parents out? He is planning to help and is simply seeking advice of those more knowledgeable regarding the logistics.

    Why do you end your replies with childish comments like 'you take care now'?


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    #43
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    Koptain Liverpool wrote:
    Why do you end your replies with childish comments like 'you take care now'?

    Would you rather I told you to 'get stuffed'? Being polite is not an effort to me. Have a nice day. Is that better?


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    #44
    lawred2
    Registered Users Posts: 24,314 ✭✭✭✭lawred2


    lol

    'you take care now' has rarely ever been used in a polite context


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    #45
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    Koptain Liverpool wrote:
    Are you saying that he has no right to seek advice about the best way to help his parents out? He is planning to help and is simply seeking advice of those more knowledgeable regarding the logistics.


    Are you attempting to put your own spin on what I said?Please show where I alluded to the op having no right to seek advice? Or are you just making stuff up. Actually don't reply, I'm finished replying to you.


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    #46
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    lawred2 wrote:
    'you take care now' has rarely even been used in a polite context


    I can only speak for myself. I use it all the time. Anyone wants to take it as an insult that's their problem. I won't lose sleep over it.


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    #47
    KCross
    Registered Users Posts: 12,111 ✭✭✭✭KCross


    nhunter100 wrote: »
    You feel you're dad's life maybe shortened by the mortgage, yet you're dithering whether you should help or not. Un*******believe able. I can't believe the priorities of some people in this world.

    Do you see bad everywhere you look or what?! :rolleyes:

    The OP is looking to help his parents, not dithering on whether he will or not, and simply wants advise on the best way to do that.

    Simply waltzing into the bank with a 25k cheque saying "knock that off my Dad's mortgage" isnt how its done. He is seeking advise on how to proceed as there are legal and tax issues that have to be allowed for, otherwise you could end up diluting the effect of the 25k. Its in everyones interest, including his Dads, that the max value of the 25k is achieved.

    You make it sound like its for an operation and he is deciding whether he will help or not!


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    #48
    Koptain Liverpool
    Closed Accounts Posts: 505 ✭✭✭Koptain Liverpool


    nhunter100 wrote: »
    Are you attempting to put your own spin on what I said?Please show where I alluded to the op having no right to seek advice? Or are you just making stuff up. Actually don't reply, I'm finished replying to you.

    Oh wise up you twat. You're just making yourself look worse and worse.


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    #49
    b4bmm
    Registered Users Posts: 335 ✭✭b4bmm


    An absolute plonker. Ruining a good thread because he/she cant give up the charade of how wrong they were!! A true keyboard warrior.


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    #50
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,279 CMod ✭✭✭✭Nody


    Mod:
    nhunter100 don't post in this thread again; you've caused enough disruption with your aggressive style as it is. To everyone else; no more replies to his posts as he's not allowed to respond to you.


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