income support paying for the interest of your mortgage

allotment_owner

I would like to know generally what mortgage companies are like when you have to go to them because of change of circs when you need to have help via income support to pay an interest only mortgage. Do they accept this or can they recall the mortgage?
I have 2 years left on a repayment but will have to go onto income support next year as a lone parent. I will be entitled to help with my mortgage after 13 weeks, interest only I know.So will need to switch the type of mortgage I have .
This will be until I hopefully retrain to find full time work / or some part time to fit around school age children.

What do mortgage companie in general do, do they have to accept the change and work with you?
Thanks.

dmg24

They don't have to accept the change, but I am not aware of any that have kicked up a fuss. All they are interested is getting paid! The main thing that you should be aware of it that they are not obliged to let you go interest only, so you may still need to pay the capital element of the mortgage.

allotment_owner

Thanks. Not sure what you mean by the capital part of my mortgage. Sorry!
Mortgage is for about £60,000. House should be double that in value (although who knows now.)

dmg24

Repayment = Capital plus Interest. They may not allow you to change to interest only. Most do, but not all, especially in the current market.

allotment_owner

It's Northern rock. Is that bad?

dmg24

I don't know to be honest, maybe worth giving them a call and asking the question hypothetically?

allotment_owner

Yes, true! thanks.

cw18

I'm with Nationwide, and when I approached them about converting from part interest only/part repayment to full interest only (due to major drop in income, meaning we qualified for ISMI) they wouldn't allow it. They insist the current value of the house is at least £150k more than the balance of the mortgage -- and ours was only about £130k above !!!!

lrr_2

You dont get a help with you mortgage until you have been on income support for 39 weeks

http://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_011992.pdf

lrr_2

Im a lone parent and got no help at all with my mortgage last year when I was on benefits for 4 months.

allotment_owner

lrr wrote: »

You dont get a help with you mortgage until you have been on income support for 39 weeks

http://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_011992.pdf

due to DLA and carers it is 13 weeks, anyway think it is supposed to go to 13 for everyone from next april? (correct me if I am wrong)
Thanks anyway, will ask hypothetically later.