Separating from partner - temporarily changing repayment to interest only

brandybrindemouse

My ex partner and separated late last year I are looking for a way that I can live with our 2 children in the home we jointly own.

The only way I can think is if as a temporary measure (I don't how temporary, temporary would be mind you!) we could change from repayment to interest only. Does anyone know how amenable providers are to doing this under these kind of circumstances? I am currently with Coventry.

It would also be sensible to take a payment break for a few months to enable a month's rent and deposit to be available for my ex partner to rent a property. Does this sound viable?

I'm thinking worse come to worse there is around 28k equity in the property. Perhaps the sensible proposal would be to continue at most until the amount owed by paying interest only reaches the limit of the equity - does that make sense? That way no actual debt is being accrued. That would give me about 3 years or so grace.

The other thing I wondered was that if I were on income support could I receive SMI and, if so, how would the 3.63% limit work when my interest rate is currently 1.25%?

Any advice would be appreciated as I'm a little nervous about approaching the Coventry in case they try and repossess the house.

I should be clear that my two children are young and I don't currently work. My plan is to return to work part-time in September when my youngest goes to school but whilst I retrain my earnings will be minimal and only 16 hours a week.

Our mortgage payments have been exemplary and I have never asked for help before. Currently we pay .75 about the base rate on a tracker mortgage.

Thanks.

hcb42

What are your options? Can you sell up and move to a smaller place for example?

diable

helencbradshaw wrote: »

What are your options? Can you sell up and move to a smaller place for example?

The cost of moving would negate that plus it would add more trauma to the children's life.

What agreement do you have in place with your ex regarding the mortgage and payment for the children's upkeep?

CLAPTON

your only realisitic lender is your current one

brandybrindemouse

Helen - I won't be able to get another mortgage as I don't work.

Diable - As per CSA calculator ex will pay 20% of net earnings - approx £100 p/w. He might be amenable to paying a little towards the mortgage but I'm concerned about giving him too much power which he could withdraw when it suited.

Clapton - I agree it's my current lender or no-one.

hcb42

diable wrote: »

The cost of moving would negate that plus it would add more trauma to the children's life.

So does a life where finances are a massive worry...;)
However OP has answered question in part, they don't work.

dimbo61

You need to speak to the benefits people asap as you should get help re the mortgage interest.
If you did work at least 16 hours you could also get WTC,CTC,CB,maybe IS and any maintence on top plus the income from working.
Might even get help with child care or EX can have the kids as part of his access

poppy10_2

brandybrindemouse wrote: »

The other thing I wondered was that if I were on income support could I receive SMI and, if so, how would the 3.63% limit work when my interest rate is currently 1.25%?

Yes, you can claim SMI if you are on income support, you have to wait 13 weeks though. The extra money would be credited to your mortgage account.