Remortgaging and JSA

wazza

Cousin is currently on JSA. He has received a letter from his current mortgage provider. They are closing down their mortgage business and has instructed cousin to change his mortgage provider. He has a couple of months to sort it out.

What view will JSA take on this? Currently he gets help with his interest.

Would they view this as a new mortgage and not pay interest for 180 days? (i think that is the period in which they don't pay interest)

Since he is unemployed how easy will it be for him to remortgage? His current mortgage is a repayment type.

Can you recommend any providers?

Dognobs

He will have BIG problems getting a lender while on JSA GOOD LUCK!!

sammyjammy

Dognobs wrote: »

He will have BIG problems getting a lender while on JSA GOOD LUCK!!

Nice to see a helpful post :mad:

I think they need to reread the letter again and if it says what you've stated he needs to contact them. If they are no lnoger taking new customers the nthats fine, if they are selling his debt to someone else that is also fine (this would be under current terms). They cannot force him to remortgage as he has a contract with them. He will not be required to remortgage with another lender.

You mgiht want ot get this post moved to the Mortgages board it'll get mroe answers there as the benefit link is a bit of a misnomer.

HappyMJ

wazza wrote: »

Since he is unemployed how easy will it be for him to remortgage? His current mortgage is a repayment type.

Can you recommend any providers?

Near to impossible. Does he have any other income? Child benefit, tax credits, child support payments can all be used in the calculation.

wazza

he has four children under 16 so he gets CB, CTC.

tomjonesrules

There are lenders that will help your brother, albeit with pretty unfavourable rates. If he really cannot stay with his current lender (and I agree that he has interpreted the letter in this respect - the debt will be sold on if the lender is entirely ceasing mortgages), he will need to contact a 'whole of market' mortgage broker to see what is available.

With regard to the DWP, they will not class it as a new mortgage so there will be no waiting period. However, should there be any costs attached to a remortgage, these will not be covered by the SMI scheme.

[Deleted User]

see post #3 he DOESNT need to remortgage !

wazza

Have told cousin to reread his letter and make sure that it is asking him to find another provider or if they were refering to new customers. Adviced him to visit CAB.

wazza

Got my cousin to read out the letter to me. He has misunderstood the meaning.

What the letter was saying was that they are no longer offering mortgages to new customers. Those with an existing mortgage might find that they can get a better deal elsewhere.

In another words they would prefer you to go elsewhere but will keep you if they have to but don't expect any good deals.

Have adviced him to visit CAB and also ring the mortgage provider to let them know he is sticking with them.

tomjonesrules

No need to go to CAB, as already explained even if they entirely cease their mortgage operation they will all be sold on to a new lender.

It is always worth checking if a better deal is available elsewhere, but he would need to see a mortgage broker about this. CAB will not be able to advise in this respect.

HappyMJ

wazza wrote: »

Got my cousin to read out the letter to me. He has misunderstood the meaning.

What the letter was saying was that they are no longer offering mortgages to new customers. Those with an existing mortgage might find that they can get a better deal elsewhere.

In another words they would prefer you to go elsewhere but will keep you if they have to but don't expect any good deals.

Have adviced him to visit CAB and also ring the mortgage provider to let them know he is sticking with them.

He might find they might buy him out on the mortgage at a discount. Some providers have been so desperate to get out of the mortgage market they have been giving large discounts for customers to leave. When he gets a job sorted then remortgage as soon as possible and negotiate a big discount on the final payment. He only needs to hold a job down for just a few weeks to be eligible to remortgage.