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Homeowner Mortgage Support Scheme Discussion Area
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All info seems to suggest that one needs to be on benefits to get help with mortgage interest payments. I am self employed (and have been for over 20 years) but my income has slowed to a trickle in the past two months. I am on a 2yr fixed with Halifax and managed to get 1 month payment holiday - but am struggling to meet payments in full. Any help appreciated.
I'm writing for my daughter who is too distressed to write herself.
She is a single mum, divorced three years ago, with an eight year old daughter. She's a self-employed music teacher who also taught on a visiting basis for the local ed authority at a primary school.
Her finance has a new job in Swindon and has rented a house in SW Oxfordshire for them all to live in and to have his three children to stay too. My daughter put her house on the market in October and had one person to look at it. She's now changed agent who will market more agressively. She'd planned to move to Oxfordshire this month to start her new life and my grand-daughter had been to the new school, chosen her bedroom in the new house etc.
Now, her fiance has said he's heard he may be made redundant as soon as he starts the job on the 23rd Feb because the government have pulled the cash from the project he was to have worked on!!
She's now decided to stay here for the time being, but the trouble is that many of her pupils have already found another teacher so her income will decrease quite drastically. I was going to take some of the younger ones on, so she can obviously keep those. But she now won't be able to keep up the mortage payments while waiting to sell the house! She's with Abbey National and has always had an interest only mortgage of £375 a month.
It seems to unfair that people who rent can have help with their rental payments, but those in trouble with mortgage payments have to suffer. Until two months ago she'd never missed a payment and it's been a real struggle.
Someone told me that sometimes you can get help with interest being paid on the mortgage, not the mortgage itself, but as she's only paying interest, would that apply.
She claims income support and child benefit and has a very small disability allowance.
Is there ANYTHING that she can do or go to for help? She's spent most of this afternoon going through stuff, changing to cheaper insurance options and breakdown cover and dispensing with any insurance that isn't absolutely necessary. She hasn't got life insurance as she had a rare gynae cancer five years ago and nobody will cover her. She's checked every six months and she's absolutely fine and it's highly unlikely it'll come back as it was to do with pregnancy and she doesn't want more children.
She's got an interview with the CAB but they can't fit her in till 17th and she'll have worried herself ill by then.
Sorry it's so long, but none of us have ever had anything to do with the benefits system and don't know the ropes.
Any help or advice would be very gratefully and thankfully received.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
MizzyAnne, sorry to hear of your daughter's situation. As she is claiming IS she will be eligible for SMI (Support for Mortgage Interest) when she has been claiming for 13 weeks. Everyone receives SMI at a rate of 6.08% at the moment irrespective of what their mortgage rate actually is and the upper limit to claim for is £200,000 mortgage.
There's a lot of confusion about SMI as the rules changed on 5th Jan (39 weeks reduced to 13 week wait, £100,000 upped to £200,000) and DWP staff are often not up to speed yet. You can see all the details in this DWP document which might reassure your daughter that even if she's not eligible immediately there is help on it's way: http://www.dwp.gov.uk/resourcecentre...st-changes.pdf
As she is on IS, is she already claiming council tax benefit? If not, I'm fairly sure she would be eligible. Worth a call to her local council.
All info seems to suggest that one needs to be on benefits to get help with mortgage interest payments. I am self employed (and have been for over 20 years) but my income has slowed to a trickle in the past two months. I am on a 2yr fixed with Halifax and managed to get 1 month payment holiday - but am struggling to meet payments in full. Any help appreciated.
Liquidlen, if you are on a low income you may be eligible for Income Support, though I'm not sure how your self employed status would affect this. I believe you can work for up to 16 hours per week on IS. Info on eligibility is available here: http://www.jobcentreplus.gov.uk/JCP/...15271.xml.html
[quote=MizzyAnne;18518905]I'm writing for my daughter who is too distressed to write herself.
It seems to unfair that people who rent can have help with their rental payments, but those in trouble with mortgage payments have to suffer.
I think with the above, people who rent to not own the house that they live in they are at the mercy of council or landlords, they have no equity in their accomodation and therefore have not got any profit to be made out of it. I think that is why they get help with rental payments.
The reason we as homeowners don't get any help is that we either have some equity in the property and are therefore going to make a profit at some point in time. And the other reason is we independently choose to take on homeownership and therefore all the responsibilities and finance that goes with that territory.
I was just wondering, won't the Accident and Sickness & Unemployment protection most people take out when having a mortgage cover her mortgage payments?
Also, I notice that she has an interest only mortgage, what payment vehicle is she using to ensure that the mortgage is paid off in full at term?
(I'm thinking, IF she has an endowment in place to pay it off at the end of term, couldn't she just cash it in now and use this to live on until such time as she gets her quota of pupils back up and when she is in a better more stable situation with her fiance back in employment, she could may be change to a repayment mortgage to gain back that which she has used.
Its just a thought I don't know if it is realistic.
I was just wondering, won't the Accident and Sickness & Unemployment protection most people take out when having a mortgage cover her mortgage payments? .
If only, the problem is people read on sites like this, that a product such as ASU/MPPI is an unnecessary expense and or advisers only recommend it for them to benefit from the commission (untrue) .....Sadly, the majority of people do not hae this cover, but you do find they have things like mobile phones, plasma televisions and pets insured!
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If only, the problem is people read on sites like this, that a product such as ASU/MPPI is an unnecessary expense and or advisers only recommend it for them to benefit from the commission (untrue) .....Sadly, the majority of people do not hae this cover, but you do find they have things like mobile phones, plasma televisions and pets insured!
Hello,
I didn't realise, I thought the majority of people who took out a mortgage had that as like an insurance policy. When I took my mortgage it was quite a steep one, and they did offer this, I looked into it and because I was a bit older I thought that the level term policy was better, even though more expensive. I pay £183 per month.
Well if that is the case and its like you say most people don't have this cover, then all I can say is they have brought it upon themselves. Because even though my insurance is steep, there would be no way in a million years I would be without it should the worst happen, if it does and you can't pay you are knackered!
The safest option then from this angle is if you can not afford the mortgage and the means to provide a vehicle to repay it if something happens eg like an endowment or insurance, well then don't bother being a homeowner and rent. And also if you put as the other lady said, mobile phones, plasma televisions and pets insured before this you are just plain daft!!
There is nothing wrong with renting or buying, indeed I have done both. But it must be this generation, the I Want, I Want, I Want brigade, in some ways the credit crunch might have a sobering effect.
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Help, This SMI benefit doesn't make sense. I was unfortunately made redundant for the second time in three years. My first company, I was in for 18 year, the second just over two. I took out my mortgage in 1993 and over the last 15 have remortgage 4 times since, the monies used to bring my home up to a normal standard. My mortgage is current 96K. After the first redundancy, I was able to get employment quite quickly (took a 7K drop in salary) This time I have not been so lucky. It has now been 14 months, having exhausted my insurance and used all my savings I am broke and going into melt down. Prior to this my only debts were my mortgage. That's right no credit card bills,loans. I find debt too stressful, so usually steer clear of it. Having benefit from the advice of this web site and other contacts, I have reduced my outgoings to my minimum. Since I realised that finding a new job was going to be harder than originally expected I cancelled most of my luxuries eg. gym, cable tv, dining out. I have also ensured I am on the best deals for the basics, broadband, Telephone, utilities.
I have finally applied for help via the SMI scheme, since I have now had to use a credit card! to pay my £400 am month mortgage and am unable to pay my utility bills out of the £120 I get every two weeks. Three month and two lost forms later the Job Centre have contacted me request details of how I spent the monies from the remortgages. No problem but they want receipts. Am I wrong not to kept receipts older than 6 years. I have contacted some of the companies and they have gone out of business etc. What am I suppose to do? How can it be reasonable to have a policy that says you have to provide receipts for work that is so old, outside of guarantee and if fact done over. Was I wrong to have replaced my cheap kitchen after 10 years. Does any one have any suggestion as to how I can make them see sense and not penalise me for not keeping clutter?
I am feeling like it's all a scam, having never claimed benefits, I feel insulted and shamed at having to share all my personnel details and then not be given assistance on what seem so petty and unreasonable grounds. I am at risk of loosing my home and drowning in debt despite being a "good citizen " etc
I was made redundant one week before finding out I was pregnant. I immediately got a temp job to take me up to the mat benefits would kick in but now I am struggling to pay the mortgage. My husband is foreign and was also made redundant - although he is working on a temp basis at the moment he isn’t entitled to any government benefits should he become unemployed again. Apart from the Mat benefits (112) a week we do not have any other grantee income, I am totally confused about the help you can get with the mortgage and was hoping that someone could give me some advice. I cannot claim income support as I am not able to look for work at the moment. I am living on the bank of 'mum and dad' at the moment and desperately want to try and sort this out. I have been to my bank (HSBC) and pleaded with them to give me a mortgage break as I have the chance of a new job once the baby is born but the have flat out refused any help although I have never defaulted on any payment with them.
If anyone can give me any help or advice I would be so grateful
Get advice if you’re struggling to pay your mortgage or you’re worried that you might fall behind. It's important to contact your lender as soon as possible – they may agree a payment arrangement with you.
looks like maybe not as many people will qualify as first muted
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
Both myself and husband are self employed mine in now non exisitant and his is a minimal wage. We have contacted CAB and are under debt managment. I have had reduced mortgage payments for 3 months and we are still in the same situation. I called them today and they say they have not been advised of any Mortgage interest payment help starting in april. (this is Northern Rock) but would like to mention that we are accruing arrears and we will now start being charged monthly for the arrears!!!!!!
What help! ........ I thought we were about to be given a bit of breathing time but the government need to tell these companies that they are supposed to have signed up to it beacause at the moment they are apparently non the wiser.......have we been fed a pack of fibs???????
looks like maybe not as many people will qualify as first muted
Payless, the link you posted is not for the SMI benefit it for people who do not qualify for this benefit. I have in the last 2 days made a new claim and SMI is very much alive.
When you phone your Mortgage provider and ask about the scheme they are commenting on the scheme in your link (which has not been formalised as yet) which is why they claim it does not exist. They do not discuss the SMI as it has nothing to do with them as the Benefits agencies arrange payments.
Homeowner Mortgage Support- refused by Kensington mortgages
Hi everyone, i am a struggling self employed childminder, separated from my husband, paying a high mortgage all by myself and have slowly falling behind in my mortgage payments. I offered to pay 60% of my monthly mortgage payment until i had more work in , and have been paying them this for sometime now anyway. They refused this officially and i then found out about the above scheme on this site. Kensington mortgages are meant to be one of the menders signed up to this scheme! I rang them and asked them why they had not told me about it and they said THEY ARE NOT a member of the scheme, just thinking about joining!!! so who is right, this website or the lender!! has anyone else had this problem and if so please could someone tell me the next step i should take!! Im going under with the strain of it all and would really appreciate any helpful suggestions .I am going to see the CAB too but am cross with Kensington that they kept me in the dark... and they said they havent't signed up the to the scheme yet anyway - apparently they are thinking about it....
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps. Take care over copyright. Use excerpts and links rather than copying long text. This site asserts copyright on all comments posted on the board.
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.
Homeowner Mortgage Support Scheme Discussion Area
Homeowner Mortgage Support- refused by Kensington mortgages
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