Advice really needed,current mortage coming to an end..

ladyhamilton

Hi everyone,
You'll have to bear with me as it's a bit complex and I'm useless when it comes to this stuff.
Okay,our current mortgage ends in December this year with Capstone, so obviously I need to start shopping around.
That's where the problems start.
We have major financial difficulties thanks to my husband nearly dying in a work-related car accident,I am his carer as he has ongoing health complications.We have three children.
BUT...we are awaiting a compensation claim for his accident that is likely to exceed £250,000...this will be with us by spring next year at the latest.
Can mortgage companies take this into consideration with proof from our acting barrister?

If not our mortgage looks set to go through the roof plus I'm not happy with their service anyway,leaving us lumbered with them for another year etc...

We do have some income,his pension,tax credits,industrial injuries,disability living allowance,carers allowance,child benefit...will all this help?

Thank you xx

minimike2

If you are paying the mortgage off with these funds in the spring then there i no point looking for a new mortgage....if you have had finanical difficulties the lenders that are likely to offer you a new mortgage will impose hefty early repayment charges. Sometimes in the region of 8%.

Why dont you find out if you can change the mortgage to interest only until the payout comes?

ladyhamilton

Hi Mike...thank you.

We've got equity in our place at the moment and plan on moving as soon as the money comes as it's too small with three children.We were hoping to use the equity as a deposit for our new place,if that makes sense.Things never go as we'd like them!lol.

minimike2

Ahh I see.

Well if you are moving then setting up a new mortgage deal now is definately not the best thing to do. The money will not count for anything to any new mortgage lender as "income" only as your deposit once you actually have it.

I presume that you do not intend on taking on a larger mortgage for the new place?

Credit history wise, do you have current defaults / CCJs / arrears then?

With the mix of income you have I would suggest now would not be a good time to look for a mortgage assuming a poor credit profile - You would probably be looking at rates in the region of 8+% for lenders that will accept that kind of profile.

ladyhamilton

No CCJ's, no defaults and no arrears.....we called everyone to say we're having difficulty paying and everyone has been fantastic surprisingly enough...but our credit scorings will have taken a hammering through missed payments.

We will be looking for a larger place yes....we currently live in a converted barnhouse,the upper floor which is huge but still too small for a large family.We bought it off my mum for pennies,there's only around £70,000 owing on it, which I think is small compared to alot of mortgages these days.We've renovated quite alot of it and therefore have some equity.God I hope I'm making sense.:rolleyes:

minimike2

Im confused a bit.....You are having payment difficulties but you want to get a larger mortgage? Or will the mortgage amount stay the same and the difference funded by the payout?

Details of the amounts of all your income sources and the exact price you are looking to buy at, and your exact amount of deposit you wish to put in would be handy, can then look to see who would consider it.