releasing equity/mortgage extension

peejay67

I am currently on benefits. We have an equity of £120,000 in our house. Are we able to release some of that equity? Are there any other options open to us?
I was made redundant in October and now the money has run out. I would welcome any advice.

Many thanks

PJ

lucy2308

Are you on means tested benefit?

You could lose benefit if you release capital from your home.

peejay67

That wouldnt necessarily be a problem, but I would like to know if there is any way I can do it. I am on Jobseekers allowance.

PJ

regularsaver1

How would you then pay for the increase in mortgage?

HelpWhereIcan

There are lenders who will look into allowing income from benefits (normally DLA and other disability benefits). Not really able to think of any who will allow Jobseekers in isolation ie. they would want there to be another source of income (employed/self employed) coming into the house. Do you have any other such income? If so, then your choices may be wider than it would initially seem.

If you do just have Job Seekers allowance coming in, I would echo the sentiments of the others and, without wanting to sound preachy, would strongly warn you against taking on additional commitments in the short term and advise that this is probably best left until you return to work.

However, you are on the right site as Martin's and everyone's advice should help you make the most of the income you do have coming in.

Hope this helps