Mortgage Misery-Help save our home!

DesperateDelia

Dear All,

HELP! I feel I will have to give up my beloved home due to poor health and end of fixed rate mortgage.

I have been unable to work for the last year due to ill health, I am claiming incapacity and disability benefit. However, as I have a mortgage the benefits people will not help me with mortgage costs they only help with rental costs. I live with my man, he is self-employed and we are beginning to struggle as our 2 year fixed rate mortgage is coming to an end. Our mortgage costs are going to go through the roof literally from £980 per month to £1495 per month this is with Northern Rock. We have seen an IFA but we are unable to get a new mortgage with anyone else as our financial circumstances have changed so much. We have told Northern Rock that we won't be able to cope with the increase in mortgage repayments but they don't seem to want to offer any alternatives. I should say we are on an interest only repayment mortgage.

I have been told that we should be offered a sensible repayment agreement if in financial difficulties. Is this true??

There is a good chance that I could be back in full time employment by this time next year-but it is rather unknown. If we can just get through another year things could be a whole different ball game.

Can anyone help me because it's breaking my heart that we may to have to sell our home.

Any advice would be gratefully appreciated. Many Thanks

Desperate Delia

Jennifer_Jane

So sorry to hear about this. Could you extend the term of the mortgage to reduce the monthly payments until you get back to work.

Good luck! I feel for you.
Jen
x

DesperateDelia

Many Thanks Jen for your quick response but we have tried to extend but NR won't let us!

Really appreciate you getting in touch.

kind regards

Delia

katiecoodle

a good financial adviser will know all your options - I'm afraid I can't think of any but just wanted to say that I feel very sorry for you in this situation. Is there no way you can return to work at all? Even if its for a small time so that you have enough payslips to prove to a mortgage company that you're working?

Leighthal

DesperateDelia wrote: »

Dear All,

HELP! I feel I will have to give up my beloved home due to poor health and end of fixed rate mortgage.

I have been unable to work for the last year due to ill health, I am claiming incapacity and disability benefit. However, as I have a mortgage the benefits people will not help me with mortgage costs they only help with rental costs. I live with my man, he is self-employed and we are beginning to struggle as our 2 year fixed rate mortgage is coming to an end. Our mortgage costs are going to go through the roof literally from £980 per month to £1495 per month this is with Northern Rock. We have seen an IFA but we are unable to get a new mortgage with anyone else as our financial circumstances have changed so much. We have told Northern Rock that we won't be able to cope with the increase in mortgage repayments but they don't seem to want to offer any alternatives. I should say we are on an interest only repayment mortgage.

I have been told that we should be offered a sensible repayment agreement if in financial difficulties. Is this true??

There is a good chance that I could be back in full time employment by this time next year-but it is rather unknown. If we can just get through another year things could be a whole different ball game.

Can anyone help me because it's breaking my heart that we may to have to sell our home.

Any advice would be gratefully appreciated. Many Thanks

Desperate Delia

Huh?

arkie

I think your details will be passed to LLoyds TSB/C&G who will offer you one of their products

Ian_Griffiths_Halifax

Lloyds TSB/C&G only want the good mortgages.

DesperateDelia you can't have an interest only repayment mortgage, you can have an interest only mortgage, a repayment mortgage or part interest only/part remayment mortgage. Leighthal, at least explain what you're confused about as you gave her no opportunity to explain.

Delia, is your partner on the mortgage with you or is it just in your name? Have the benefits people said they won't help with the mortgage because he has an income as you would normally qualify for Income Support for Mortgage Interest after being off sick for 9 months.

Income Support

Income Support (IS) is a benefit to help people on low incomes, although eligibility for help with housing costs is very restrictive. Categories of people who might be able to claim include people bringing up children on their own, those who are too ill or disabled to work, or people who give up work to become carers. You cannot claim if you work 16 hours or more per week, or your partner works 24 hours or more, or if you have savings of over £16,000.

If you qualify, then there are limited arrangements in place to help meet your mortgage interest, provided that the purpose of the mortgage was for the purchase of your home or for work carried out to maintain the property's fitness for occupation. There is an upper limit of £100,000 on the size of mortgage which IS will cover - although if your mortgage is larger than this, you may still be able to receive assistance on the first £100,000. Restrictions can be imposed if your housing costs are considered to be excessive.




In addition to mortgage interest, IS may also cover ground rent or certain service charges, but it will not cover the capital part of your mortgage payments or the premiums on an endowment policy. IS for mortgage interest is normally paid direct to your mortgage lender and credited to your mortgage account every four weeks in arrears.
The timing of the assistance will depend on when you took out your mortgage, but usually you cannot start receiving assistance until 9 months after the start of a claim: check with your local Jobcentre Plus office.
For information and advice on Income Support, or to make a claim, visit the Jobcentre Plus website or phone 0800 055 6688.

DesperateDelia

Hello and very many thanks to all that have responded;

Update on a few points:

1. We have an interest only mortgage-I was obviously so stressed I did a huge typing error-thanks for pointing it out!

2. Yes my boyfriend is on the mortgage.

3. I have been onto the benefits people about 10 months into my sickness and after 7 phone calls got put through to a lady that said I could only claim money for housing costs if I was renting and NOT for the mortgage!

4. C&G have come through this morning with a 5 year fixed rate of £1,200 so it's going in the right direction (down!) but we are still going to struggle with this amount. We have been doing all the right things to help bring down the costs of living, i.e. All the money saving tips from Martin Lewis and MSE.

5. I have been trying to get a job to do a few hours a week, but this would unfortunately not help significantly. There are plenty of cleaning and caring jobs about but I need to do an admin or sedentary job, which seem few and far between.

Thank you so much to everyone for all their support and advice and particularly a huge thank you to Ian Griffiths with regards the benefits people I will get back onto them ASAP. I feel that maybe the lady I spoke has not helped me when she should have! Feeling a bit brighter now knowing there might be a little ray of sunshine behind the big black mortgage cloud.

To everyone reading please continue posting your ideas, thoughts, any little bit of information given might just help us save our home.

pm2326

DesperateDelia wrote: »

Many Thanks Jen for your quick response but we have tried to extend but NR won't let us!
Delia

Its not that they wont let you extend the term, more that its not relevant. If you extend the term on an interest only mortgage it doesnt affect your payments, doesnt matter if you have a term of 10, 15 or 20 years, you will always pay the same interest i.e. mortgage payment.

DesperateDelia

Hello pm2326

Many Thanks :T for explaining the interest only mortgage to me, as you can tell I'm not to clued up on mortgages, hey but I'm learning new things everyday!!

Any advice from you or anyone else is so much appreciated, keep the posts coming everyone. Thanks!

Kind Regards

Desperate Delia

poppy10_2

DesperateDelia wrote: »

3. I have been onto the benefits people about 10 months into my sickness and after 7 phone calls got put through to a lady that said I could only claim money for housing costs if I was renting and NOT for the mortgage!

I would get yourself down to CAB, this doesn't sound right.

How much are you actually bringing in each month (including benefits), and what are your outgoings? also, how much is your actual mortgage, and what is the interest rate?