Unwanted difficult decision-help pls if you can.

Annisele

Given an outstanding mortgage of £37,000, mortgage payments of £311 per month, and a term that completes in 2025, I assume you have a repayment mortgage with an interest rate in the region of 4.5% *.

It might be worth talking to your lender about things you can do to reduce the monthly payment - for example, extending the term or switching to interest only. Neither of those are ideal solutions, and (depending on the value of your flat) your lender may flat out refuse the interest only option.

I appreciate that won't solve the problem on its own - even if your mortgage became magically free, you'd be saving £311 against an income shortfall of £520 - but it might free up £150 a month or so.

Are you absolutely certain you're not eligible for help with your mortgage interest?

* Please forgive me if my maths is dodgy - I hope I'm close enough that the point stands.

bundance

Annisele wrote: »

Given an outstanding mortgage of £37,000, mortgage payments of £311 per month, and a term that completes in 2025, I assume you have a repayment mortgage with an interest rate in the region of 4.5% *.

It might be worth talking to your lender about things you can do to reduce the monthly payment - for example, extending the term or switching to interest only. Neither of those are ideal solutions, and (depending on the value of your flat) your lender may flat out refuse the interest only option.

I appreciate that won't solve the problem on its own - even if your mortgage became magically free, you'd be saving £311 against an income shortfall of £520 - but it might free up £150 a month or so.

Are you absolutely certain you're not eligible for help with your mortgage interest?

* Please forgive me if my maths is dodgy - I hope I'm close enough that the point stands.

Hi

Your maths is not that dodgy.
I think my interest is 5.18%

I just checked my lenders website and they want £150k equity on the flat before they will consider a change to interest only.

I can get mortgage interst relief but it is ony about £19 a month I think.

I feel doomed and very very afriad.

McKneff

Bundance, please dont worry too much and stop worrying about having to rent.
There is no stigma in renting, most people do it nowadays. It's not a big deal, only in your head.

If you sold and paid the mortgage off, you would be debt free and have a healthy bank balance, now isnt that a positive.
You need to get a mind set of positivity, not doom and gloom where you are now.

Hpefully you will be able to get back to work, at 45 youre in the prime of your life, so work on it and good luck.

bundance

McKneff wrote: »

Bundance, please dont worry too much and stop worrying about having to rent.
There is no stigma in renting, most people do it nowadays. It's not a big deal, only in your head.

If you sold and paid the mortgage off, you would be debt free and have a healthy bank balance, now isnt that a positive.
You need to get a mind set of positivity, not doom and gloom where you are now.

Hpefully you will be able to get back to work, at 45 youre in the prime of your life, so work on it and good luck.

McNeff

I am not worried about renting.
I just want my own place whether that be rental or bought.
I don't think rental is a stigma. - Sorry if I was unclear.

What I am worried about is that if I sell, I may end up not being able to rent at all.
The landlord may want 6 months rent in advance every time the rent is renewed or he may not want me as a tenant at all.

All I am worried about is having nowhere to live.

Yes, i would l ove to get back to work, but if I try to do that now, I know i will only make myself more ill.

McKneff

But if they want six months in advance, why is that a problem if you have the equity of your flat in the bank.

Paying six months rent out of that is chicken feed. Pay your six months, then each month put a months rent into a seperate account so that you have another six months to pay (saved) for the next six months, dont you see, its that simple if your committed enough.

duchy

Do you have any hobbies you could use to make some money ? You mentioned art I think ?Any other talents ?

bundance

I think I am worried, because, if I sell, and no landlord wants to entertain me, I will be stuck, high and dry. The council wont help me either if I sell as they will class my as making myself intentionally homeless.
I am just so confused. Every avenue seems to have a pitfall.
I feel trapped.

bundance

duchy wrote: »

Do you have any hobbies you could use to make some money ? You mentioned art I think ?Any other talents ?

I do art, but that won't make up the money I need per month.

Also, although I do want to try to work from home, either with saucy phone lines or matched betting, that the DWP will stop my benefits early.

It's like catch 22

lighting_up_the_chalice

I think you have a very difficult decision to make, and I'm sorry if this sounds harsh...

Either you create a situation where you can support your mortgage.... or you sell up.

It really IS that simple.

Worries about the Council housing you and/or private LLs taking you are neither here nor there. If you cannot afford your current housing, it will have to change.

So, either increase your income (work) or decrease your income dependent outgoings (mortgage).

Simples.

suburbanwifey

bundance wrote: »

It got valued at 70-75k, no I would not have enough equity to buy something cheaper.

I feel really doomed and it is making me more depressed at a time when I want to be recovering, it is delaying my recovery.

I'm just typing a reply after doing some thinking, will post it shortly, hang in there