Mortgage help whilst on Benefits.

savingspender

Thank you so much much tcr. I will contact dwp and see if they are able to help a bit more, I didn't even know that was a possibility!

andyandflo

shegar wrote: »

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...!!!!

Please read the whole paragraph please.

Trying to dispose of your home either by handing the keys in or trying to sell it yourself does not affect your credit file, not paying your mortgage does.

But the OP can't pay her mortgage now!! So she is already snookered, and has a bad record even before she does anything - so get rid of the property the quickest way to mitigate the damage!!!

Keeping hold of it now will not do her any good!

mummyslittleboy

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.....

Hi My friend already makes up a small shortfall on her mortgage each month the additional cost from October she wont be able to afford the house is going on the market within the next couple of days at a lower price to hopefully sell as soon as possible she will then be in a position to totally clear her mortgage but as she will have a large lump sum left I think she will have to live of that and have her income support stopped and rent rather than be able to buy some were out right like she was hoping to do.I am not sure to be honest about this last bit so please dont bite my head of and any advice will be welcomed but this was what she was told previously when she thought of selling.
She has been applying for jobs for a while now with no luck as she was hoping to get a job and be able to sell and buy outright and not have to worry about a mortgage she will once the house is sold be in a postion to do that if only she could get a job:(

shegar

andyandflo wrote: »

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.

If she just chucks the keys in the lenders wont want to help her as much as if she went to see them and explained of her difficulties they would probaly waive one months mortgage , to give her a chance ..failing that they may be able to offer her a reduced payment for a short time until the situation change.

Which ever way she goes at least by trying to make some of the payment is better than giving up quickly and chucking the keys over ....if everyone gave their keys on the first months payment back because they couldnt make a payment the estate agents and mortgae lenders would crash overnight....Its best to try anything you can before you give your home up....

dmg24

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??

You are contradicting yourself again - you have gone from saying that renting is the perfect option, to renting being far from ideal ... and now you are saying it is ideal! People will not take you seriously if you cannot decide what your viewpoint is! :rotfl::rotfl::rotfl:

mummyslittleboy

andyandflo wrote: »

Please read the whole paragraph please.

Trying to dispose of your home either by handing the keys in or trying to sell it yourself does not affect your credit file, not paying your mortgage does.

But the OP can't pay her mortgage now!! So she is already snookered, and has a bad record even before she does anything - so get rid of the property the quickest way to mitigate the damage!!!

Keeping hold of it now will not do her any good!

My friend does not have a bad credit rating she has no debts her household bills are paid on time and her mortgage shortfall has always been paid on time with no problems she will not be better of walking away she has good family and friends that can help her out IF she can sell it this side of christmas we will make sure she is ok.

andyandflo

shegar wrote: »

If she just chucks the keys in the lenders wont want to help her as much as if she went to see them and explained of her difficulties they would probaly waive one months mortgage , to give her a chance ..failing that they may be able to offer her a reduced payment for a short time until the situation change.

Which ever way she goes at least by trying to make some of the payment is better than giving up quickly and chucking the keys over ....if everyone gave their keys on the first months payment back because they couldnt make a payment the estate agents and mortgae lenders would crash overnight....Its best to try anything you can before you give your home up....

Maybe, but when you know you are in a one way street there is no point in looking for a way out. If you can't afford something today do you keep thinking that you might be able to afford it next month or do you offload now, and in my case, you hand it back.

If the money isn't there to pay the mortgage now and in the future, you don't just hope for a miracle.

Bankers want their money irrespective! Mine gave me no choice, pay or sell!!

If you can't pay the HP on the car what would you do, hand it back as most do. There is no difference.

shegar

andyandflo wrote: »

Maybe, but when you know you are in a one way street there is no point in looking for a way out. If you can't afford something today do you keep thinking that you might be able to afford it next month or do you offload now, and in my case, you hand it back.

If the money isn't there to pay the mortgage now and in the future, you don't just hope for a miracle.

Bankers want their money irrespective! Mine gave me no choice, pay or sell!!

If you can't pay the HP on the car what would you do, hand it back as most do. There is no difference.

Theres a big difference between a car and a roof over your head.....

andyandflo

dmg24 wrote: »

You are contradicting yourself again - you have gone from saying that renting is the perfect option, to renting being far from ideal ... and now you are saying it is ideal! People will not take you seriously if you cannot decide what your viewpoint is! :rotfl::rotfl::rotfl:

Ok OK OK !!!

You know what I am on about and are looking to pick holes that aren't there.

Renting is the perfect option if you can't pay the mortgage.
Renting is the perfect option because you get HB
Renting is the perfect option for less worry.
Renting is the perfect option with no responsibilities other than internal decoration.
Renting is far from ideal if you have to move every 6 months.

BUT on the whole it is the ideal perfect option when faced with the thought of not having the money to pay the mortgage.

I hope you understand it now - gee a 5 year old has more nunce than you have!!

andyandflo

shegar wrote: »

Theres a big difference between a car and a roof over your head.....

Not really if you can't afford it - it goes back. Well that was the way I was brought up to believe.

It is a lesson learnt the hard way - the only way you do learn!