Pregnant & suicidal needs more advice,Northern Rock refusing to extend interest only?

whitewing

Where are you actually living now (when you're not in hospital)? I read your op as you and ex were still living in the marital home. Or have you moved out?

madmish00

A lot of lenders now require you to have at least 25% equity in the property in order to accept a change to interest only. You do not say how much the house is on the market for but at this price it would only just cover your mortgage. Even if they accepted the surveyor valuation at 20k would this put you at under 75% LTV?

The difficulty is due to the requirement for 'responsible lending' even if you did have 25% equity in the property you will also be required to show that there is a method of repayment in place to pay of the capital at the end of the mortgage. If you are both on DMP's it is unlikely that you will be able to meet this requirement.

Is the mortgage solely in your name? I am confused as to why they will not speak to your ex husband if he is the one living in the property and paying the mortgage at present

vicxzy

Thanks everyone.

They said they won't speak to him because we do not live together & no longer have the same surname (even though we are separated with another few weeks for the divorce to come through)
When Im not in hospital (rarely! ) I have a rented home, he told NR that I am in hospital for the foreseeable so they would need to speak to him or let me email them my inc/ exp but they still refuse to accept this.

I am hoping to go back to work when the baby is around 6 months old health permitting but even then will not be able to afford my rent plus the mortgage & childcare etc. I do have a partner but he only earns minimum wage.

We are not entitled to benefits or tax credits etc as I am still classed as employed (even though only stat mat pay income) & I had an income last tax year.
Its all such a mess I just need some breathing space to get myself back to health & ensure the baby is not affected by the stress before she is born, she already suffers with tachycardia because of my recent heart problems.

vicxzy

Oh & sorry forgot to say the ex is not on a DMP

grey_lady

Breathe, you don't have to talk to them if you don't want to, and they can't take anything from you that you don't have. Who is your dmp with?

Have you thought about auctioning the house?

vicxzy

Oh & that my DMP is only in place until I return to work as then I should be able to pay full amounts again. Thank you.

vicxzy

grey_lady wrote: »

Breathe, you don't have to talk to them if you don't want to, and they can't take anything from you that you don't have. Who is your dmp with?

Have you thought about auctioning the house?

Hi Thanks for your reply,

They say I have to speak to them & give them my income/ expenditure or they wont consider interest only but as I dont live there anymore or contribute I'm not sure why my income makes a difference to the decision? Unless they are thinking I could pay towards it? They wont even let us rent it out as the LTV is too low so our only option if they wont take interest only for a little while longer is repossession.
My DMP is with CCCS. I am unsure how property auctions work but we would need to achieve enough to at least repay the mortgage, what if the winner bid much less than this?

Thank you.

grey_lady

You could put a reserve price on the house in an auction, but you would obviously need your ex husbands agreement. If I were in your situation though I would be considering bankruptcy, is that something you've discussed with CCCS? How much debt do you have in total?

opinions4u

It's not unreasonable for a mortgage lender to insist on the full contractual monthly payment ahead of any payments for unsecured creditors.

vicxzy

grey_lady wrote: »

You could put a reserve price on the house in an auction, but you would obviously need your ex husbands agreement. If I were in your situation though I would be considering bankruptcy, is that something you've discussed with CCCS? How much debt do you have in total?

Around 30k unsecured debt, this is being added to daily by my creditors who refuse to stop interest despite CCCS appealing for me.
I only had to go on a DMP because Ive been unable to work whilst pregnant for the last 8 months when Im working again I can pay things back.
If I went bankrupt I would not be allowed to go back to my job as I work for the local authority.