Endowment shortfall - will we qualify for housing?

bj-sailaway

Our endowment isn't going to pay our mortgage off, by a long shot. The mortgage comes to an end November 2012, the endowment will probably give us £29K, towards a £74K mortgage. Our house is worth about £245,000, but lets be realistic and say it will sennd for £225,000 in the current climate.

When we sell to cover the outstanding debt, does anyone know if in these circumstances we would qualify for Housing Association rented property, or part ownership schemes?

All advise greatfully received!

McKneff

You'll still have enough of a proft to to buy a smaller house outright or just buy one and have a smaller mortgage.

No, you wouldnt be eligible for housing, you will have made yourself deliberately homeles under the circumstances.

jimjames

So you would have around £180000 in cash having sold. What makes you think you would be eligible for a Housing Association property. Why not rent one privately or buy with the cash?

AMILLIONDOLLARS

I think a lot of people are in the same position as you. I have to say that you have left it a bit late for making over payments, I would still start making them now, throw as much money at it as you can. what about renting out a room in your home to make some extra money, that what I am doing at the moment. Your shortfall will be 45k if you can reduced this by half by November 2012 then you might be able to borrow the rest.

AMD

dunstonh

I think a lot of people are in the same position as you.

Actually, not that many now. The average shortfall is actually relatively small and most people have been long preparing for it and the extended period of low interest rates has certainly helped the situation with many people able to use the savings to over pay their mortgages.

The problem cases are those that have buried their heads in the sand. However, most lenders will allow the extension of the amount of shortfall for a period of years (typically up to 5 years if there is no bad payment history)

Auntie-Dolly

Can you not get another mortgage for the outstanding amount?

shop-to-drop

That seems like a huge shortfall. Did you borrow more during the mortgage term? Sounds like you will be OK though as you will have enough if you sell to pay for alternative housing or maybe you will be able to extend the mortgage term. Best to get professional advice.

callmechar

As above, I am afraid if you have considerable savings you can apply for LA housing.

There are 2 routes, homelessness (and you may be deliberately homeless - which is one of the 5 stage tests) and being on the waiting list for housing. You could do either. LA housing is in demand and as a result you may not be very high up the list (and if you have savings you will have no housing need so be at the bottom)

opinions4u

bj-sailaway wrote: »

Our endowment isn't going to pay our mortgage off, by a long shot. The mortgage comes to an end November 2012, the endowment will probably give us £29K, towards a £74K mortgage. Our house is worth about £245,000, but lets be realistic and say it will sennd for £225,000 in the current climate.

When we sell to cover the outstanding debt, does anyone know if in these circumstances we would qualify for Housing Association rented property, or part ownership schemes?

All advise greatfully received!

Talk to the lender about extending the mortgage on a repayment basis. Then you can stay put.

Spend the next 14 months overpaying.

Sell up and buy a property for cash.