Will we lose our home?

dmg24

Jowo wrote: »

Yes, I agree it's possible to provide a solution that an OP hasn't considered - answering a question that they've failed to pose.I also agree that employment is largely beneficial to prevent and reduce MH issues - there's plenty of research that proves its merits. But instructing an unemployed person to find a job is pretty much on par with telling a depressed person to pull themselves together.

Both could be achievable but the OP is on the cusp of being repossessed and this might happen before her household income increases or her MH issues resolve.

The OP did not list Shelter as an advice organisation that she had consulted. They are one of the few organisations that have a specific homeowner helpline and they themselves specifically have an assessment process to help those wanting to apply to the Mortgage Rescue Scheme.

As her household have no current active job offers and depression tends not to vanish overnight, I do actually think that she should prioritise contacting Shelter who have specific expertise in preventing repossession and who are unlikely to hector her about failure to find employment and give amateur MH advice.

So you acknowledge that the advice given was constructive and not against forum rules/ etiquette? Seems like your little rant was about nothing then?

Jowo_2

dmg24 wrote: »

So you acknowledge that the advice given was constructive and not against forum rules/ etiquette? Seems like your little rant was about nothing then?

Here's a reminder to help you understand what qualifies as a little rant and what is against forum rules and etiquette.

"your husband needs to widen his job search and get a job... 18 months is long enough on handouts, time to go back to work... [Your] attitude really annoys me... The tax payer has been paying your mortgage for long enough now... This is a classic case of people being 'better off' on benefits... you are deliberately sinking yourselves to gain state help... you are winding people up!...You want your mortgage payments paid out of the public purse ad infinitum so that you have a house paid off when you retire.”

Oldernotwiser

Jowo wrote: »

Here's a reminder to help you understand what qualifies as a little rant and what is against forum rules and etiquette.

"your husband needs to widen his job search and get a job... 18 months is long enough on handouts, time to go back to work... [Your] attitude really annoys me... The tax payer has been paying your mortgage for long enough now... This is a classic case of people being 'better off' on benefits... you are deliberately sinking yourselves to gain state help... you are winding people up!...You want your mortgage payments paid out of the public purse ad infinitum so that you have a house paid off when you retire.”

The first comment you quoted seems like perfectly acceptable advice considering the OP has made it clear that at the moment her OH is only looking for well paid jobs. There's not much wrong with the rest, either.

joeblack066

poormummy wrote: »

Thank you for all your replies.

My thoughts about changing to ESA are because it would seem that by claiming this benefit, the mortgage interest payments don't stop after 2 years.

Although maybe it would be for the best that the payments did stop, then the bank could start legal proceedings and we would then be eligible for the mortgage rescue scheme. Having a dependent child and mental health problems will 'help' us be a priority, but we need the letter from the bank before we can apply.

I can see that selling our house would be an option and we could live off any equity (maybe £20k-£30k) until we could claim housing benefit, it just feels like we are being punished for being made redundant (and the whole financial mess and insecurity triggered the depression). It would feel bad enough having to lose our home to use the money to pay off debts that we can no longer afford to pay back, let alone having to lose our home to use the money to pay someone else's mortgage while renting. Once we lose our house, we'll never be able to afford to get another, and have to be back renting forever. Then what happens when we retire?

I just wish there was another way, something I haven't yet considered.

I wasn't trying to say that staying on benefits for 25 years wold pay the house off, I used the phrase ad infinitum, as the OP doesn't seem to be wanting to go down the route of work, and is even considering swapping benefits if they can to keep their mortgage relief for longer. I was simply trying to point out that one of the couple working would surely be a better option. I was in no way 'benefit bashing', and really do object that when I give advice from personal experience as to what I believe is the right course of action, I get the forum rules posted straight afterwards. Come on folks, sometimes advice may be a bitter pill, but after all, the OP did ask what they could do!

SingleSue

Jowo wrote: »

I'd have like to have seen the sound advice about her housing options and where to seek further advice on this thread.

And a separate post in Discussion Time about the weaknesses in the mortgage rescue schemes, plus perhaps people's theories on how depressed people can magically cure themselves with the application of will power.

And this comes from someone who would prefer that all govt/local council property ownership rescue schemes were scrapped, with the onus put on property buyers managing their own risks through compulsory mortgage insurance.

I do hope my post was not seen as hectoring, I was aiming for being supportive from one person with mental health issues to another with things which worked for me....albeit things that did take time to work to change my attitude to my mental health.

OP- If I have caused more grief or upset, I apologise, that was not my intention at all.

poormummy_3

Reading the posts above has just reitereated how difficult it is to get correct information (eg. with regard to the deprivation of assets issue) - all the agencies I have spoken to have told us something different, which has made it very difficult to work out the best route for us to take.

Wading through the opinions about my circumstances and medical condition and suggested treatments (none of which correspond to the treatment plan from my psychiatrist) to get to the financial advice that I need...

I will contact Shelter today, as the eligibility guidelines are different to the information I was previously given by the CAB and Council, so may be they have changed. We have taken the last two steps - many meetings/phone calls with the bank, CAB advice, CCCS advice, financial statement, MP contacting bank etc.

Somebody mentioned about OH getting a part time/lower paid job and being able to claim tax credits - I'm not sure where to get definitive information about this - on the phone, the tax credits office will only give me information if my circumstances have actually changed, rather than a 'what if this happened...'

My husband is far from opposed to getting a job, but when I try to work out our finances using just one wage, and that one being a lower figure than before - it just doesn't balance and doesn't cover the essential outgoings.

RAS

AHave you looked at www.turn2us.org.uk for information on working and child tax credits?

TOBRUK

poormummy wrote: »

Partner and I have been on JSA for 18 months and have been receiving mortgage interest benefit,
...

The mortgage interest benefit has been cut quite considerably in the past few months, so it doesn't cover the interest payments any more. The bank however, said they may take legal action against us if we owe 6 full months mortgage payments - and so far altogether, we owe 5 months full payments.

...
As far as I am aware the mortage interest benefit will be paid for 2 years - so come January, I guess we will have our house repossessed.


..... So we would lose our house and wouldn't be able to use the money to pay off our debts (over £25k).So it would seem that even selling up wouldn't solve our financial difficulties.

Would it help if I claimed ESA instead of JSA?

Hi poormummy, I'm sorry to hear of your difficulties and I don't know whether what I have to say will be helpful! I realise the situation you find yourself in is extremely stressful especially if you are suffering with depression.

Are you currently seeing someone for your depression? Have you been told by your GP that you are unfit to work?

I know there have been cuts in mortgage interest payment benefit since October. However, despite this you owe the lender 5 months of mortgage payments. The fact that you have £25,000 of debts is not helping.

It may be helpful for you to look at the 'debts' forum to see whether you can cut down on spending to try and reduce your debts.

poormummy wrote: »

Unfortunately I suffer from severe depression so am unable to work, so my partner has to do the childcare when I'm not in a fit state. Also, his industry hasn't picked up from the recession and there are no jobs in his field. So really JSA isn't the right benefit for us to be on, I think I should be on ESA, but don't know how this would affect the mortgage interest benefit payments, so we haven't switched.

You are entitled to apply for ESA but no-one can choose which benefit would like to be on (and I don't mean that to sound as a critisism) it is the DWP who decide what benefit you are eligible for.

poormummy wrote: »

My thoughts about changing to ESA are because it would seem that by claiming this benefit, the mortgage interest payments don't stop after 2 years.

Having a dependent child and mental health problems will 'help' us be a priority, but we need the letter from the bank before we can apply.

I can see that selling our house would be an option and we could live off any equity (maybe £20k-£30k) until we could claim housing benefit, it just feels like we are being punished for being made redundant (and the whole financial mess and insecurity triggered the depression). It would feel bad enough having to lose our home to use the money to pay off debts that we can no longer afford to pay back, let alone having to lose our home to use the money to pay someone else's mortgage while renting. Once we lose our house, we'll never be able to afford to get another, and have to be back renting forever. Then what happens when we retire?

If you were to sell - you say you have between £20k - £30k equity in your property? Now, I don't know where you live or whether it would be possible (or allowed) but, if you sold your house could you buy a property with that money, maybe a smaller property or in a different area with a lesser mortgage - or no mortgage?

I realise that your husband is seeking work and has so far been unable to find any. However, you also state that you rely on him to look after your child when you are not able to. If your husband was to find a job what happens when you don't feel well enough to look after your child? Although I realise that finding employment in the current climate is extremly difficult, is the fact that you need him to look after your child when you are unwell maybe a factor preventing your husband to seek work?

Sorry if I've misunderstood your situation, and nothing I have said is meant to offend.

poormummy_3

Thank you for taking the time to understand my situation Tobruk - no offence caused

We have had advice from CCCS about dealing with our debts and have set up agreements with all our creditors to pay off £1 per month while we are not working. We really struggle to afford the essentials while we're on benefits, so it's just not an option to pay any more than this at the moment.

I am receiving treatment for the depression, and my doctor, therapist and psychiatrist understand that I can barely look after myself, so if needed, they would sign me off as unfit to work if I were to apply for ESA instead of JSA.

We bought 6 years ago when house prices were much lower and got a 100% mortgage. Even if were could get another mortgage (our current mortgage lender won't let us re-mortgage), we live in the South East, so £20k-£30k would just about buy a new shed.

With regard to my husband finding work - you are right on both accounts - there are no jobs in his field (and if there were, he would be likely to have to live away from home again), and he also does the majority of the childcare and household management.

It may be an option for my husband to claim a carers allowance and me claim DLA, but the social worker we spoke to was not very hopeful the claim would be successful due to my illness being mental rather than physical.

joeblack066

RAS wrote: »

AHave you looked at www.turn2us.org.uk for information on working and child tax credits?

Excellent advice OP, then you would be able to do some sound calculations.