Will I lose my house???

djdido2

Hi

I am confused! I am aware that interest is paid on a mortgage after 39 weeks of claiming income support! What do people do in the meantime to pay off there mortgage??? Do they have to give the keys back to the mortgage provider and seek alternative living arrangements/accommodation?.

I really can't see a mortgage company waiting that long for payment???

Apologies if my question is a bit numb but I am on my **** at the moment and am looking at all possible avenues before I have to leave my beloved house.


Any help/advice, anyone in a similar situation/experience hugely appreciated!

Dido

simpywimpy

you could try asking your mortgage provider for a payment holiday or to have a set time at interest only in the meantime

djdido2

Wow what a quick reply, thank you!

Please forgive me but I am a bit dim at stuff like this. I didn't know it was possible to take a payment holiday?!?! So I could switch to interest only?? What does this mean?

dmg24

Not all mortgages will allow you to take payment holidays, and I am not aware of any that will allow you to take such a long break. Also remember that you will still be accruing interest through these periods, which will be added to the amount owed.

Switching to interest only means that you are not paying any of the capital off your mortgage. Most lenders will allow you to do this, but increasingly they will ask for evidence of having another repayment vehicle in place before allowing you to do so. They may also charge you for changing over to IO.

You really need to take professional advice before making any changes to your mortgage product.

Do you have any savings that could help you in the meantime, or could you get a job?

mummytofour

Hunni a payment holiday is often only if you have been over paying your mortgage.

Can you please tell us a little more about your situation? How have you been paying your mortgage up until now? How much is it PCM? Is the mortgage in your sole name?

Is anybody in the house disabled or on DLA?

djdido2

Hi

The situation is that I am a single parent of two children. Working full time and part-time to try and pay for everything. Don't get any CSA and give up on them a long time ago due to the ridiculous length of time it has taken them to tell me the same thing they told me three years ago.

I have no childcare in place for them and have got so far behind with everything could not afford to pay for this, so my parents have been helping but they are no longer able to offer help. To top it all, I am working 50 plus hours a week, never see my kids and am worn out down and depressed.

No disabled kids and just cannot see a way out at the moment, other than handing back the keys. The mortgage is £589 per month and I am paying all council tax with single person discount. Just had to buy all School Uniform etc and every single month I am skint with no hope of paying off any of the debts I have accumalated.

dmg24

How old are your children?

When was your mortgage taken out?

I assume you are planning on giving up work in order for you to be eligible for ISMI? x

djdido2

I am not the type just to give in but I am having to look at other alternatives. Have been accepted at University full time and it is my dream to achieve this, but I have not been able to manage the mortgage on a full time wage so I don't see how I can do this. My kids are 12 and 5. I dont by any means just want to go onto income support but I have burnt myself out trying to manage everything on my own so my health isnt to good at the moment and I feel close to a nervous breakdown. I have worked all my life so I would not just be going back to benefits, I just need to reassess the hours I am working and the fact that my kids never see me. Having to get to work at a ridiculous time in the morning and commute there is making my kids suffer and that is the last thing I want as they are very precious to me.

djdido2

The mortgage was taken out in Dec 2006 when I was running a small business and had a good steady income. Had to give this up in May of this year as work had died off to literally nothing and that is how I have got in a mess. Took up a full time position and worked at the weekend to when the odd bit of work comes in. I only have one pair of hands and trying to juggle everything has put immense pressure on me and me alone. Feels good here to get it off my chest but I would be heartbroken if I had to give the house.

dmg24

Does the uni course offer a bursary? You would need to check your figures very carefully, as for some the entitlements for parents who are students are higher than the IS personal allowance. Then you would not be eligible for IS/ ISMI anyway.

You should be aware that there are proposals for people not to be allowed to claim IS purely by virtue of being a lone parent. This change is likely to happen for older children by the end of this year, but may also happen for those with slightly younger children within the next few years (dates and exact details for implementation keep changing). Therefore you may not be able to claim IS for the length of your course.

There are certain circumstances where you would qualify for help with mortgage interest earlier, but you do not fulfil any of them.

Have you posted on the Debt Free Wanabee board for help with budgeting and managing your debt? x

djdido2

I probably would not want to claim any benefits if it can be helped as I was thinking of University and a job to fit around my studies, but I just cant see how I would manage this. I have been awarded finances for the study due when the course commences from my local authority and the Uni offer a seperate bursary to this. The job I have requires me to commute and my car is on its last legs, so for the time I have to be at work I could not possibly get there without childcare so early in the morning.

If I did claim it would be a stop gap to get me into a part-time job and be able to study also. Maybe a matter of a
month!!

Think I am just questioning if it is possible to do this and not lose my house. The mortgage was lower until my bank (the mortgage provider) advised me to consolidate my mortgage with some loans I had. When it was also processed I ended up with a quarter of what they said I would and so got the higher mortgage and STILL have the loans.

I have looked at the debt free wannabe and will get round to trawling through the minefield in a day or two when I am more emotionally stable and have sought advice.