A remortgage but on benefits?

forgotmepassword

Hi, having had back trouble that has left me confined to a wheelchair, i am now on income support and disability living allowance. I have a small mortgage £43,000. I am currently mortgaged with Kensington but this is an interest only repayment. Does anyone know a lender that will give out a repayment mortgage? Thanks

herbiesjp

You can ask Kensington to change it to a repayment mortgage.

UK007BullDog

Because of your status you too need to see a broker who can work with your benefits and other incomes and source a lender. Kensington is an adverse lender and their rates are high. If you can move without any early repayment charges then do try to do so to save on the interest rates which seem to be going up at this time.

As for you going repayment that depends on the affordability and if you still have enough money left over to live on.

Please read Martins remortgage guide before you speak to any brokers.

We cannot give you any names of lenders and as you seem to be with an adverse lender already it is imperative you speak to a broker. Try your local ones, not the big national ones as they charge too huge fees.

forgotmepassword

UK007BullDog wrote:

Kensington is an adverse lender and their rates are high. .

Thanks for advice, but whats an adverse lender?

Rikki

Is the DHSS making the interest only mortgage payments for you?

The DHSS will not pay the repayment part of your mortgage. You would have to make this part of the monthly payment yourself.

UK007BullDog

An adverse lender is one who lends to people who either had money problems before and a poor credit record or do not fit the regular lenders criterias for wanted clients, due to income, credit record, residency status or property type.

They tend to have much higher interest rates than the regular lenders like Abbey, Nationwide or Woolwich. Tend to charge higher fees and have some wicked tie ins (even though that is getting better).

UK007BullDog

If the government is paying your interest only parts of your mortgage as you took it out so long ago make sure you get all info because if you change it you might be worse off as the government could stop the payments. So check before you start any proceedings.

forgotmepassword

Rikki wrote:

Is the DHSS making the interest only mortgage payments for you?

The DHSS will not pay the repayment part of your mortgage. You would have to make this part of the monthly payment yourself.

The dhss pay some of the interest at the moment, i have to make the rest up.