Will I be made `homeless`

sexymax

Hi everyone I`m begining to panic !.I`m 66 years old,and have been on benefits for the last 10 years.(now on pension credit)
My endowment mortgage with Santander has 2 years to run.
For the last 10 years the benefits have been paying the interest only.
I should have been paying seperately for a endowment insurance to pay off the capital,
but I had to stop that around 10 years ago(to costly)
bottom line is would the mortgage co allow the time to be extended indefinately, being as they are being paid the interest
if not, presumably in 2 years I shall have to pay them the balance(£72,000)
and if I can`t I shall have to sell the house And live where ?
another complication is that I originally took out the mortgage with my childrens mother.
she has never officially lived with me , and the benifits have accepted that I alone am responsible for the mortgage
but if I have to sell the house she supposedly is entitled to 1/2?
so the remaining would not be enough for me to buy anywhere else cash !And I cant get a mortgage on benifits
should I panic ?? any advise will be greatfully received

DannyboyMidlands

Sell the house, pay off the mortgage and rent somewhere to live.

sexymax

thanks for your comment..however you obviously didn`t address my individual concerns ?
a, I`m currently receiving pension credit, eg, all interest on mortgage, council tax,
all other benefits
b, I`m in fact only entitled to 1/2 the property
(approx £250k - £72k =£178k cut in 1/2 =£89k lets say £90k
not many places around for £90k (with £90k I would not be entitled to any benefits
c,Im trying to avoid being homeless
d,main point `would mortgage co extend period indefinately ?

thanks anyway

BoGoF

In answer to d) no they won't. They will be looking for payment of the amount borrowed in 2 years. You may have been able to remortgage if you had sufficient income but seems like you don't. Even if you were to remortgage it would probably have to be a repayment mortgage but you cannot afford this.

Seems like your only option is to sell and rent as advised earlier, that way you won't be homeless.

MuffinTops

Would you be able to remove the other party from your mortgage deeds? I did this when I took over my property after a break up. All mortgage details and terms remained the same except it went just to my name.

tescobabe69

DannyboyMidlands wrote: »

Sell the house, pay off the mortgage go on a cruise, visit far off lands meet new people and rent somewhere to live.

Altered slightly.

sexymax

would that in reality mean a new mortgage? also I find it hard to believe mortgage co would not be interested in extending ! concidering the interested they would be getting each month, for how many years ?

silvercar

would the mortgage co allow the time to be extended indefinately, being as they are being paid the interest

Ask the lender. If they say no the options include buying in a cheaper area and/ or buying somewhere smaller.

BoGoF

Well you better believe it.....you do realise that interest only mortgages are very rare these days on residential mortgages.

The lender will want paying in 2 years, that is what you agreed to do.

BoGoF

Even if you could continue interest only why would you want to.

Seems like you are struggling financially and £89k (at least) could give you a new lease of life.

MuffinTops

Hi sexymax,
If you're asking me if that would mean a new mortgage, no it won't. It's just changing the names on the account. Mortgage account number, terms, interest rates would be the same. It would just be your mortgage rather than a joint one. If the bank are aware that you are the only person paying in they'll approve it. In effect you're legally stating that you'll take full responsibility for making the monthly mortgage payments - which you're already doing anyway.

It cost me a couple of hundred pounds I believe. It was a while back but it was very simple. My ex just needed to sign a document a couple of times and I was the sole owner. Feel free to PM me anytime if you want to talk about it.

I don't think you need to panic though. I really think you'll be ok.