Any chance of getting a new Mortgage?

Comfort

Hi

I currently have a mortgage with First Active. It was on repayment terms, but after my husband was made redundant we changed it to interest only as we wouldn't have been able to keep up the repayments otherwise. We have no insurance to cover this. The mortgage is currently at £67,000. Our house is worth £175K - £180K.

I have now been made redundant too. Times are very trying with us both out of work. We are concerned about staying on the interest only mortgage with no means of paying back at the end of term.

So what we would really like to do is relocate. If we sold our house and paid off this mortgage it would leave us with approx £110k as a deposit on a new house. If we can relocate to Norfolk we can buy something suitable in the region of £120k to £130k. We have my redundancy money of £5k which we hope will cover moving costs.

The problem is, can we get a mortgage or loan on a new property for about £10k to £20k? We are looking max LTV 15%.

As neither of us work I believe this is going to be difficult if not impossible. We do get an income from Disablility Living Allowance, Tax Credits, Child Benefit and Carers Allowance which totals £1300 a month. Our bills come to £800 a month, plus I have a loan that costs £150 a month our mortgage currently costs us £87.00 a month. We each have about £80 a month each to spend. We have two children.

From my calculations we have enough money left over to pay a small mortgage on a repayment basis say £150 a month. But would anybody lend to us?

We have no adverse credit history, CCJs or anything like that.

Thanks for any advise.