Mortgage income support query

DAREDEVIL78

hi everyone , i am currently unemployed and getting income based jobseekers as a partnership claim for me and my g-friend who is also unemployed , i am wanting advice on the mortgage income support scheme , i understand that after 13 weeks of being on jsa that the interest can be paid by jsa but what happens to the rest of my mortgage payment excluding the interest , also what happens regards the fixed rate period i am still currently in thats fixed til 2011 ???
i dont have mortgage protection insurance and dont know what to do with the mortgage nevermind the bills , i currently roughly have to find £1000 + a month to pay the mortgage/bills and i have no savings to use and am simply living off jsa and our recently increased tax credits but even though these benefits help we arent any where near what we need to cover outgoings and things are getting to a point of desperation , the worry is overwhelming, how do you pay bills of this amount with no major income , it seems inevitable whats going to happen but i am hoping a job will come along, i have tried everyday but everything is minimum wage and a 40 hour week which would bearly cover my bills weekly let alone shopping/car costs etc.

dmg24

You will need to speak to your lender regarding the capital part of your mortgage, you will not receive any help with this. Again, the issue of the fixed rate period is something you will need to discuss with your lender.

You refer to tax credits - I assume you have children?

There is absolutely no shame in working for minimum wage. It pays more than most benefits will.

DAREDEVIL78

There is absolutely no shame in working for minimum wage. It pays more than most benefits will.[/QUOTE]

I agree with you regards minimum wage , what i meant is the rate though wouldnt cover bills weekly , we have gone from £450 net a week between us, to not a penny (except benefit help ), we got the mortgage based on this income but any future jobs are going to pay less than what we got before , we are dropping a third of earnings and the sums in my head just tell me you cant make a square peg fit in a round hole if you know what i mean .

SuziQ

Being in a fixed rate mortgage complicates things as you can't just go onto an interest only. We have found our lender to be pretty supposrtive on the whole and your best bet is to talk to them asap. It may be an idea for you to get some advice from CAB,they can check you are in receipt of all benfits you are entitled to.Are you getting CTB? Sad fact is if you were in rented it would all get paid-but those of us with mortgages are in a different position unfortunately. If you do get employed you may well find working tax`credit would boost the amount up for you. I really hope you get some good news soon.

char_student

well you need to make sure you have tell the mortgage company. Go to your local Citizens Advice and they will help. It may mean going into private rented accomodation (with help from council) and selling the house, sad fact I know but the Gov wont pay someones mortgage for them only interest

[Deleted User]

It depends what the fixed rate is,it may for a short time work in your favour as until dec 31st 2009 the dwp notional interest rate is 6.08%,and they will pay this on mortgages upto 200k.As pointed out they only pay the interest and not the capital repayments,BUT if your fixed rate is less than 6.08% then this may cover some of it as well.

dmg24

SuziQ wrote: »

Being in a fixed rate mortgage complicates things as you can't just go onto an interest only.

Being on a fixed rate should not be a factor in whether a borrower is allowed to change to interest only or not. Every lender has their own criteria (some will not allow it at all, some will allow anyone to do it, some will look at LTV etc), but the type of product is rarely one of the criteria applied.

mmcourt

woodbine wrote: »

It depends what the fixed rate is,it may for a short time work in your favour as until dec 31st 2009 the dwp notional interest rate is 6.08%,and they will pay this on mortgages upto 200k.As pointed out they only pay the interest and not the capital repayments,BUT if your fixed rate is less than 6.08% then this may cover some of it as well.

Hello, Sorry for butting in on this but, I phoned my dss office yesterday as I realised there was alot less going across to my mortgage company than there used to be. She told me that the interest rate on which they pay for dropped to 4.08%. Could this be right. I am in Northern Ireland, maybe it is different over here?