Endowment Mortgage comeing to end ... no endowment policy and no job!

boobies

uponahill wrote: »

The OP states that his father is unemployed and sick.
I would be very surprised that any lender would consider him worthy of an extension or remortgage.
And yes I do know that some banks used to take DLA into account.

Given the state of the mortgage market over the past three months I would say he is going to be hard pushed.

Just being realistic

A mortgage advisor would tell you differently. Indeed, there are several examples on the Mortgages board to prove my point.

https://forums.moneysavingexpert.com/discussion/3031744

https://forums.moneysavingexpert.com/discussion/3744467

You're not really one to talk about reality are you Andy? :rotfl:

boobies

BigAunty wrote: »

And I believe the previous poster is correct when they say that a former owner occupier cannot claim housing benefit in a property they have previously owned. For some reason, I think they can't do this for 5 years. I'll see if I can find a link in the actual regulations.

As far as I can see his options are to sell up and move somewhere cheaper or rent if the lender refuses you paying off his mortgage.

You're wrong. HB can be claimed where the (former) owner has to sell because they would otherwise lose the house. The issue of whether the tenancy was contrived would still need to be considered though, the provision is intended to cover situations where the owner has sold to a social housing provider or one of those pesky rent back companies.

You have also missed the third option - the possibility that the owner will be able to extend his mortgage (see examples posted above).

daviecol

I realise that your bouncing ideas around your head at the min to try to do the best thing for your dad.

However I personally feel that you shouldn't feel obligated to use your own presumably hard earned and hard saved money for this situation. It might sound hard faced but that money is yours and I think you should seriously think about keeping it in case a situation arises when YOU need it.

I also have had a mortgage for over 20 years and have had to extend it as I am on a lower wage now. If I become unable to pay this due to ill health the last people on earth I would want to burden this with would be my kids. That's my problem not theirs.

Ultimately I would most likely sell my house and rent a flat. Again whatever happens I'd think seriously before using your own money, especially as you have stated you have a mortgage of your own.

BigAunty

boobies wrote: »

You're wrong. HB can be claimed where the (former) owner has to sell because they would otherwise lose the house. The issue of whether the tenancy was contrived would still need to be considered though, the provision is intended to cover situations where the owner has sold to a social housing provider or one of those pesky rent back companies.

Thanks for clarifying - link, please. Are you saying the HB is payable in another property or in the same property he is living in now, should the OPs son buy it for him?

Another factor to consider is how to deal with is that he's currently sitting on approx 60k capital which would exclude them from HB.

uponahill

boobies wrote: »

A mortgage advisor would tell you differently. Indeed, there are several examples on the Mortgages board to prove my point.

https://forums.moneysavingexpert.com/discussion/3031744

https://forums.moneysavingexpert.com/discussion/3744467

You're not really one to talk about reality are you Andy? :rotfl:

The first thread was from 12 months ago and the second referred only to Santander.

Santander in the past few weeks have been slated for making it harder still by asking questions about how much is spent on Christmas Presents!

Given that a lot has happened in the past 12 months with ever changing criteria for mortgages, I would be still surprised if someone on benefits today would get a decent mortgage advance at a decent rate of interest.
If there were such banks that were lending at that level on benefit only income at say 3.6% they would be having queues a mile long down the High Street!

What I do know is that Barclays/Woolwich will not extend a mortgage that is due for repayment. I would say that most banks are following suit.

If I was in the OP's shoes I would continue paying the interest every month and push the bank into doing something. The worst that they can do is seek possession. That would be a little difficult if you showed the Judge that you are still paying the interest and that there are no arrears. All they could go for is breach of contract!