Loan Problem

tonome

Due to a recent serious illness, I'm now on long-term incapacity benefit, DLA and Income Support. I have a very small mortgage (about 10% of the value of my home).
My home is 2-storey but due to my disability, I wish to sell-up and move to something smaller. This would then release capital and consequently I would stop requiring Income Support.
However, because of my illness, I've never been able to finish my current property. It's needs considerable work done to it to make it marketable. I don't wish to sell it "unfinished" as I'd lose out. So, to finish it, I require a loan.

Two questions....

1) Is there a way to release some of the equity in my property now eg extending my mortgage (remembering that my only income is the above mentioned benefits)?

2) If I were to acquire a loan to finance this, are there any circumstances in which I would be allowed to do so without losing my Income Support? This factor isn't as important as I'd be prepared to lose Income Support in order to obtain the capital I require.

As I'm on the above benefits, I presume this would make it difficult to acquire any loan, but is there some way to "dig into" the equity in my current property to finance the improvements I need to make to subsequently sell it?

Any advice greatly appreciated!

Thank you - Tonome

jonesMUFCforever

Some mortgage companies will use benefit money where it is deemed to 'permament' as income.
I would ask your present mortgage company first as they will be aware of your repayment history.
To keep costs down perhaps an interest only mortgage would be best to be paid off upon sale of the property.

One other thing to consider is will you have enough money once you have done up your property (and sold at a price you are happy with) to buy the new place?

tonome

Thanks for the post...
Tonome