Mum-to-be stuck with 5.29% SVR - help!

andieb1972

This is my first post so please bear with me.
I'm a pregnant mum-of-one whose fixed-term mortgage with UCB Homeloans expires this month. It's timely because the government have slashed the rates of my Support for Mortgage Interest (SMI) from 6.08% to 3.63% this month also. I am in receipt of this due to being on Income Support while I raise my family. Before I had my baby I was not on benefits and I have never missed any mortgage payments in 14 years (6 of which were with UCB).
Now UCB have put me on their Standard Variable Rate (SVR) of 5.29% which is WAY higher than I was expecting and means my SMI payments won't cover my mortgage (which is interest only). I seem forced to accept this outrageous rate as I am under the impression I am unable to switch lenders while receiving Income Support.
(My partner has his own property and cannot move due to childcare commitments from a previous relationship. So he is 'around' but unable to live with me or contribute financially.)
I find it so frustrating that if I was still working I would have my pick of the market but now I am stuck with the extortionate 5.29% (Their fixed rate products had even higher rates!) :mad: All I'm asking is for a rate closer to the 'Average Mortgage Rate' which the government are now using to determine SMI payments.
Does anyone have any experience of remortgaging while on benefits? If I have to stay with UCB, do I have any options other than giving in and paying the 5.29% indefinitely?
This stress is NOT helping my pregnancy.
I can imagine many other benefit recipients being stung by this too.

GMS

It is difficult enough for people in employment to secure mortgages at present so you are pretty much at the mercy of your current lender.

5.29% is not exactly an extortionate rate, and outrageous is stretching it somewhat.

IF you were working you say you would have the pick of the market, which may or may not be true depending upon your circumstances.

Until your circumstances change there is nothing you can do to change lenders. Whilst some benefits can be used for mortgage purposes they would need to make up a part of income, not all of it.

getmore4less

If you can't afford it consider selling and looking at alternative arrangments with partner.

ILW

Sorry, but if you cannot afford your mortgage you should be looking at selling up.

dimbo61

It takes 2 people to make a baby and under CSA rules he should be paying 15% of his net take home pay for his child.

BLT_2

andieb1972 wrote: »

This is my first post so please bear with me.
I'm a pregnant mum-of-one whose fixed-term mortgage with UCB Homeloans expires this month. It's timely because the government have slashed the rates of my Support for Mortgage Interest (SMI) from 6.08% to 3.63% this month also. I am in receipt of this due to being on Income Support while I raise my family. Before I had my baby I was not on benefits and I have never missed any mortgage payments in 14 years (6 of which were with UCB).
Now UCB have put me on their Standard Variable Rate (SVR) of 5.29% which is WAY higher than I was expecting and means my SMI payments won't cover my mortgage (which is interest only). I seem forced to accept this outrageous rate as I am under the impression I am unable to switch lenders while receiving Income Support.
(My partner has his own property and cannot move due to childcare commitments from a previous relationship. So he is 'around' but unable to live with me or contribute financially.)
I find it so frustrating that if I was still working I would have my pick of the market but now I am stuck with the extortionate 5.29% (Their fixed rate products had even higher rates!) :mad: All I'm asking is for a rate closer to the 'Average Mortgage Rate' which the government are now using to determine SMI payments.
Does anyone have any experience of remortgaging while on benefits? If I have to stay with UCB, do I have any options other than giving in and paying the 5.29% indefinitely?
This stress is NOT helping my pregnancy.
I can imagine many other benefit recipients being stung by this too.

So in essence you are on benefits, being supported by the state, and in process have had another child which the father doesn't want to support (watch this space when you go to claim allowances for the child and are instructed to contact the CSA - he will be paying then), and meanwhile are aggrieved that the state contributions to your mortgage don't meet the mortgage rate.

Very little sympathy here. You are getting a free ride from the tax payer and have added another passenger on the bus. I will reserve my judgement on a 'Partner' who cannot live with you or contribute financially but expects you to bring up a child on benefits without any support

aimingforadebtfreelife

I agree, Im sorry but your term extortionate is way out. Why should the tax payer pick up the bill because your mortgage relief has been halved. It was halved to get people back into work and not rely on benefits. Were you hoping for the mortgage to be covered until your youngest was seven when you would be put on job seekers?

Your post is aiming anger at the government for slashing the rate and towards a mortgage company for not bowing down to your demands to lower their interest rate...... I'm sorry if the red carpet is not laid out yet but the days of expecting to live in a private house and not contributing have gone. You will get tax credits and child daycare vouchers when you get a job after your child is 6 mths old, if your "partner" wont contribute then its back to work during the week and nursery all week for the children.:mad::mad::mad:

inmypocketnottheirs

I don't think that the UCB SVR is very much different to what is currently available anyway. Unless you have a huge amount of equity. Which if this is the case, then you really should sell up and be able to fund your own choice of lifestyle rather than expecting the state to fund it.

SouthCoast

I know folks who were making a profit on SMI.
Where is the logic in that!

Chinkle

The SVR certainly isn't extortionate - SVR's these days don't seem to have much connection with base rates. I can't see you getting a much better deal elsewhere and not one that will match the amount of payment you'll get from your benefits. If you can't meet the difference, it will be a slippery slope downhill to arrears and maybe repossession if your circumstances don't change. Does your partner not help at all, it is his child which will need a roof over its head.

I think you need to assess what the long term likelihood of you being able to remain in your home is, ie do you expect to be able to return to work after you've had your baby? If not, it might be better to cut your losses sooner, sell up and rent until your financial situation improves.

G_e_o_r_g_e_2

Not a lot of sympathy from me either.

You seem to think that the world owes you a living. Most of us struggle to pay our mortgages. Many mums work to make ends meet while you sit at home bringing your children up at taxpayers expense. Give yourself a good talking to and think about what you are doing with your life. Think how you are bringing the children up to expect the state to support them.

G e o r g e