Mortgage help whilst on Benefits.

DaisyFlower

I'm sure it was annouced in the budget that help with mortgages would be cut, therefore those able to work (having children does not render any body incapable of working) had the choice to find work or remain on benefits as a choice and accept a deduction.

Lots of workers have not had pay rises yet still have to find their mortgage payments etc.

[Deleted User]

TOBRUK wrote: »

Thank you woodbine for your trouble and giving me those figures although I'm afraid I can't work it out at the moment - I may attempt it later! I have just under £40,000 left on my mortgage.

I am aware that the dwp pay every 4 weeks (in arrears) making 13 payments a year. I phone the lender every couple of months to check that payments have gone through and that I am not in arrears.



Thank you for the information anmarj, although I really think it is terrible that the department isn't given this information way ahead of time - allowing to give people plenty of notice!

i make it that a 40k mortgage will cost roughly £80 a month more

[Deleted User]

DaisyFlower wrote: »

I'm sure it was annouced in the budget that help with mortgages would be cut, therefore those able to work (having children does not render any body incapable of working) had the choice to find work or remain on benefits as a choice and accept a deduction.

Lots of workers have not had pay rises yet still have to find their mortgage payments etc.

are you having a laugh??

most workers are in a position where if they chose they can re-mortgage to a lower rate,very few on benefits (if any)have that luxury

[Deleted User]

anmarj wrote: »

the department can't tell you at present as the change has not gone through, till that is done they will not be able to say, which is what dmg said earlier, most lenders do appear to know as people are coming on saying that their lender has been in touch, it may be that letters were sent to the lenders to warn them, and so some are already making the change, but in terms of the DWP no changes have gone through, we have not had any noficiation and knowing this, it will be at the last minute

not all lenders are signed up to administer direct payments from the dwp,and therefore the smi goes direct to the borrower,this will account for how people are informed i suspect

TOBRUK

woodbine wrote: »

i make it that a 40k mortgage will cost roughly £80 a month more

Thank you for that woodbine much appreciated. Now I can relax and go and have a cry in a corner somewhere!;) I honestly didn't think it would be that much ...

TOBRUK

DaisyFlower wrote: »

I'm sure it was annouced in the budget that help with mortgages would be cut, therefore those able to work (having children does not render any body incapable of working) had the choice to find work or remain on benefits as a choice and accept a deduction.

Lots of workers have not had pay rises yet still have to find their mortgage payments etc.

That's very thoughtful of you. There are some who are unable to work (who don't have any children) and haven't got any choice.

andyandflo

dmg24 wrote: »

You are tying yourself up in knots here - just a few posts ago you insisted that giving up the house was a positive step, as it would not affect someone's credit rating and you could simply move to a rented property. Now you admit that it will screw up your credit rating and renting is far from ideal. Do you actually think before you post?

Yes I do think, you don't read things properly!
Giving up your home is a positive step. You are taking decisive action now. Whether you give up your home or try to sell it makes no difference to your credit rating.

Re-possession does!!!

What will make a difference to your credit rating is either you sell it yourself, or the bank sell it for you and there isn't the equity in it to cover the debt and expenses which will leave an unsecured unpaid debt.

By giving up your home means that the equity is in the hands of the bank and as such will not be treated as notional capital for benefit purposes.
Selling it yourself will be a nightmare in todays market, you have to find a buyer, negotiate a price, instruct solicitors etc., and at the same time keep on paying the mortgage every month until it sells.

The main reason for handing back the house is that you don't have to worry every month in trying to find the mortgage money out of income. The bank have that problem and will take it out of the equity when it sells.

To make it clear: your credit file will only be affected whatever you choose, if there is not enough equity to settle all of the debts and expenses following the sale.

How is rental not ideal? Millions do it every day and find it ideal! You have no responsibility, other than internal decorations, for the property - that will save some money. Buildings insurance - landlord's problem.

Are you trying to say that renting is second best to buying??

tcr_3

savingspender wrote: »

Oh my god. Can't believe they are going to do this. My ex told me a few days ago that he won't pay his half of the mortgage any more, so I need to find that and this too now.

If you're on the SMI scheme right now, with DWP paying 50% of the eligible housing costs ... and he's refusing to pay his 50% ... you can apply to DWP for help with the 50% that he's not paying under para 23423 of the Decision Maker's Guide, as follows :

"23423
A person is liable to meet housing costs where the
1. liability falls on them, their partner, or in the case of joint-claim couples, the other member of that couple, except where the liability is to another member of the same household or
2. the person liable for those costs is not meeting them and
2.1 the claimant has to meet the costs to keep on living in the home and
2.2 it is reasonable in all the circumstances to treat the claimant as liable for the costs".

I think you should contact DWP and let them know he's no longer meeting his share, they might be able to give you extra help.

andyandflo

shegar wrote: »

I know the house hasnt been re posessed , but the OP will not be able to make her monthly payments as she agreed to do , each month your credit file is up dated , the mortgage company will enter this that she hasnt kept up with the agreed payments, hence ,when she trys to borrow again this will come up. No company will lend to anyone that as mortgage arrears or CCJs , which she will get if she defaults payments.....

OK then if she can't make the monthly payments now, she's snookered anyhow whichever way she goes. It will start to go on her credit file now and there is little that can be done to stop it. Given those facts no matter what happens now, whatever she does, she will have problems borrowing in the future - I accept that.

However does she keep hold of the property in the hope she can keep it going? How, she can't pay the mortgage anymore! So she has to do something pretty quick to solve her problem.

So choices:sell or hand in the keys.

Selling will take time energy and money.

Walking away - just find somewhere to rent. Better now with a good credit file than renting in 12 months with what knows else on it - defaults etc. Who would rent to her then?

I took the latter, and have left it to the bank to sort out.

shegar

andyandflo wrote: »

Yes I do think, you don't read things properly!
Giving up your home is a positive step. You are taking decisive action now. Whether you give up your home or try to sell it makes no difference to your credit rating.

Re-possession does!!!

What will make a difference to your credit rating is either you sell it yourself, or the bank sell it for you and there isn't the equity in it to cover the debt and expenses which will leave an unsecured unpaid debt.

By giving up your home means that the equity is in the hands of the bank and as such will not be treated as notional capital for benefit purposes.
Selling it yourself will be a nightmare in todays market, you have to find a buyer, negotiate a price, instruct solicitors etc., and at the same time keep on paying the mortgage every month until it sells.

The main reason for handing back the house is that you don't have to worry every month in trying to find the mortgage money out of income. The bank have that problem and will take it out of the equity when it sells.

To make it clear: your credit file will only be affected whatever you choose, if there is not enough equity to settle all of the debts and expenses following the sale.

How is rental not ideal? Millions do it every day and find it ideal! You have no responsibility, other than internal decorations, for the property - that will save some money. Buildings insurance - landlord's problem.

Are you trying to say that renting is second best to buying??

Your credit file is affected as soon as you are unable to make a months payment on the date it is due , ,its the homeowners responsibilty to make the payments, one month after failing to make an agreed payment WILL affect your credit rating , it will automatically happen,The file is up dated each month .

You quote "whether you give up your home or try to sell it, makes no difference to your credit rating.."of course it does if you give up your home and dont keep up the payments..youve de faulted on your payments...!!!!