HELP Mortgage too much since recession bit!

Mamfa_Li

Hi, hubby works in the building industry which was hit hard by the recession and we have recently gone from an income of nearly £5k a month to under £2k.
Our repayment mortgage which is still fixed for another 2 years is £1250 pcm which was no problem up until work dried up for hubby and he now earns a lot less with no chance of that improving soon.
We have tried to apply for a new mortgage but are told no lender will touch us because we earn now too little (under £30k pa) and the most we could hope to borrow would be about £100k.
Our mortgage is for £180k on a £310k property but we cannot keep paying the repayments as all our savings have been eaten up now and it really is crunch time.
Is our only option to sell up? Our current lender wont let us switch to a better deal with them or take a payment break and our personal bank has also said they cannot help out.
Any advice grateully received .....

_Andy_

hi Mamfa, welcome to MSE

Ok well changing lenders isn't an option on that income.

Have you asked your current lender if you can switch to interest only? (not a long term solution, granted)

Mamfa_Li

Thanks for the quick reply Andy.
We are just in the process of 'form filling' for that very reason - although our lender has kindly pointed out to us that it is not their usual policy to do this for anyone but they will let us go through the process for the sum of £60!!!???!!! So not looking too likely at this point.

beecher2

Can you extend the term of the mortgage?

Go onto the Debt Free Wannabee forum and post a Statement of Affairs to get help in cutting back on expenditure on other bills. You might also get help on the Upping your Income forum.