Mortgage Problems :( Going up £250 in December!

stressfulmole

Hi guys ok a long story and not sure what to do here, in brief me and my now ex took out a mortgage almost 2 years ago on a discount rate for 2 years, as circumstances changed and we split and i have 4 children under 6, he's having his own financial problems and the good for nothing isnt helping much at all, currently my family is helping me pay the £812 mortgage, interest only with SPML, the mortage is for 147000, ive just had a letter from the mortgage providers stating a predicted increase to £1075 were just coping with this £812 and ive asked for help like perhaps extended period but they dont seem to want to help me at all as i struggle along, worst yet the property value has decreased so i think without getting it valued im almost hitting break even or negative equity. i really want to stay here as the children are settled, but it isnt looking possible. i really dont like my current mortage provider but as i cannot now prove my income or anything i cannot shop around and i fear i wont be able to get another mortgage if i sell up for now.... is there any other avenues i can look into or is it a lost cause, sell up (if possible) loose out and thats that?
any help or guidance would be appreciated.
thank you.

stressfulmole

forgot to say they've stated the interest is going upto 8.75%!

m00

Sounds as though best option is to try and sell up and move on. Its obvious you cannot afford the house. Harsh it may sound but things happen and we all have to live within our means.

Renting somewhere isnt the end of the world - you are already asking family to help out before the rate increase.

boggie40

see if the social security can help you out in some way.
it may only be housing benefit or paying your council tax, with 4 children you will obviously get tax credits.
there is always a solution to every problem - the difficult part is finding it, but it is out there somewhere.....

good luck

grogdog

as you are on interest only currently extending the term would make no difference at all,as you say you may be in negative equity there is no chance you will get a mortgage elsewhere at a better rate, so as already mentioned unfortunatley your only options may be to sell up before it gets any worse.

Debs12

Hi,

Are you on benefits? Is so how long?

Income Support then something may be done if you contact them.

Cheers

Deborah