Cant afford mortgage payments, but if i sell i will be intentionlly homeless!

MissMoneypenny

angel1985 wrote: »

Thank u for all the replies, my father doesnt pay anything towards the mortgage or any other bills.. It was aggreed that i would be responsible for everything

You might want to ask your father for some help if you are finding it difficult to live there, because if you fall behind with the mortgage payments, the lender will go after your father for the money as he is reponsible for paying the mortgage too.

angel1985 wrote: »

Do u think it may be possible for me to rent my flat out for a year and rent elsewhere? ..

That's a question for your mortgage lender, as you need their permission to let the property.

It's now a very big risk to let the property without this permission as lenders are now actively searching for those who let without consent, by using various technolgy such as National Hunter (looks to see who has a credit record linked to the property and who should be the one linked to the property) and Mover Alert. The selling of mortgages between lenders, is also catching out those who let without consent when addresses don't match for accounts.

Once caught, the lender can recall the mortgage or add an instant interest rate rise, plus add the fees and any interest already owed, to the mortgage.

Plus your insurance will be invalid (even landlords insurance) if you haven't got permission to let.

You might also need permision to let from the freeholder of the flat.

Even if you get permission, think about how you will you pay any big repair bills such as a new boiler; or how you will pay the mortgage if the tenant doesn't pay the rent and you need to go to court to remove them, which can take months. Don't forget all your other legal obligations too i.e. an annual gas safety certificate.

angel1985 wrote: »

Because Ive noticed today on housing benefit application forms it says about declaring any other property you own??? Does anyone know how this works?? How do they let people rent the property they own but still apply for housing benefit??! This doesnt seem to make logical sense?!

You would have to declare this property on benefit claims. You would also have to declare the rent to HMRC, so they can assess the tax you have to pay. HMRC have now been given permission to look at lenders books, so make sure you declare the rent. You won't get tax relief on the repayment part of the mortgage. You will also have to declare this rental income on any benefits claims, as your income.

Once the house prices finally rise again, don't forget that income based welfare payments have a capital limit of 16k, but you will get a reduction for most benefits when you have 6k capital. This will also affect any tax credits you claim, once that benefit is merged with the other income based welfare payments and becomes Universal Credit.

As the mortgage interest rates are now going up, can you still afford the mortgage if the rent doesn't cover the mortgage payment?

saraann21

Quote:
Originally Posted by saraann21
am in the same boat,had to give up work last year and have a mortgage.because my son who is 19,works,i get no help with the mortgage payments and have to pay about a third of my council tax bill.it is as if they class him as my partner,not my son.they even told me i would be better off if he gives up work!obviously he is not going to do that.i am on interest only payments for the mortgage but it is still hard.people assume when you are on benefits that council tax and mortgage are paid,well they are not!!if things do not improve then i will have to sell aswell

As a working adult, why shouldn't he be contributing half, just as a partner would?


because he is my son not my partner and if he wanted to pay a mortgage or council tax then he would get his own place.not his responsibility for my house.and it works both ways,if he is treated as being responsible then why can't i claim tax credits for his brother on the back of his work then i wouldn't have to be on income support?i was making the point that this does happen,even jobcentre plus told me i should not pay council tax when i am on income support.just letting people know that a child that works means that you do not get as much help.that's all so calm down!!

shoe*diva79

saraann21 wrote: »

Quote:
Originally Posted by saraann21
am in the same boat,had to give up work last year and have a mortgage.because my son who is 19,works,i get no help with the mortgage payments and have to pay about a third of my council tax bill.it is as if they class him as my partner,not my son.they even told me i would be better off if he gives up work!obviously he is not going to do that.i am on interest only payments for the mortgage but it is still hard.people assume when you are on benefits that council tax and mortgage are paid,well they are not!!if things do not improve then i will have to sell aswell

As a working adult, why shouldn't he be contributing half, just as a partner would?


because he is my son not my partner and if he wanted to pay a mortgage or council tax then he would get his own place.not his responsibility for my house.and it works both ways,if he is treated as being responsible then why can't i claim tax credits for his brother on the back of his work then i wouldn't have to be on income support?i was making the point that this does happen,even jobcentre plus told me i should not pay council tax when i am on income support.just letting people know that a child that works means that you do not get as much help.that's all so calm down!!

Surely at 19 and working you are charging him board though?!!!

BigAunty

saraann21 wrote: »

,,,
he is my son not my partner and if he wanted to pay a mortgage or council tax then he would get his own place.not his responsibility for my house.

for means tested benefits, such as council tax (and housing benefit if you are renting rather than owning the property), the council will calculate a non-dependent deduction for working adult children, for example.

your local council website should have published a table of how much these deductions are, plus the Turn2us online benefit calculator should be able to double check your entitlements, including how much his income will affect your benefits.

this non-dependent deduction is done precisely because it is expected that a working family member pays towards the household budget in the form of keep/lodgings/rent rather than the public purse.

Dunroamin

saraann21 wrote: »

Quote:
Originally Posted by saraann21
am in the same boat,had to give up work last year and have a mortgage.because my son who is 19,works,i get no help with the mortgage payments and have to pay about a third of my council tax bill.it is as if they class him as my partner,not my son.they even told me i would be better off if he gives up work!obviously he is not going to do that.i am on interest only payments for the mortgage but it is still hard.people assume when you are on benefits that council tax and mortgage are paid,well they are not!!if things do not improve then i will have to sell aswell

As a working adult, why shouldn't he be contributing half, just as a partner would?


because he is my son not my partner and if he wanted to pay a mortgage or council tax then he would get his own place.not his responsibility for my house.and it works both ways,if he is treated as being responsible then why can't i claim tax credits for his brother on the back of his work then i wouldn't have to be on income support?i was making the point that this does happen,even jobcentre plus told me i should not pay council tax when i am on income support.just letting people know that a child that works means that you do not get as much help.that's all so calm down!!

Don't worry, I'm not at all uncalm.;)

No decent 19 year old young man ( not a child, after all!) will want to have money in his pocket and see his mother (presumably ill or disabled) struggling on benefits. If his brother is still in education, you will be able to claim tax credits for him anyway.

angel1985

Hi everyone.. Thank you all sooo much for all the advice, ....

in regards to my dad its not really a route that is possible, i am aware if there was debt the lender would be after him just as much as me, which is why im trying to deal with it before i get into any debt... As that wouldnt be fair on him..

In regards to my babys father.. I have given all details i know to csa so guess i just have to wait with it.. I Just wanted to give you all a little update on my situation.. Ive spoken to a confidential legal advice centre today and they said i would actually be entitled to a little more smi than i thought .. They work it out at a rate of 3.63% up to 200,000 ( if anyone wanted to know) and i should be able to change to interest only with my mortgage lender (hopefully!!) so i should .. Just.. Be able to make ends meet.. And if i do have to sell i wont be seen as making myself intentionly homeless because they would look at my finacial situation and see with my income i paid as much as i could to keep it, which is very reassuring if i do have to sell...
Ironically... i asked them how my situation may differ IF i was to go back to work and i would be £10 per week worse off!!!! ( that is working 45 hours per week)

Thank you all again

AGR999

Angel1985 : I think applying for a housing benefit can be your option, but you cannot solely rely on it.. Housing benefit helps people on low incomes with the cost of their rent.
To claim housing benefit, you must:

• live in the property you are claiming for
• be charged rent for this property

Hope that helps

BigAunty

AGR999 wrote: »

Angel1985 : I think applying for a housing benefit can be your option, but you cannot solely rely on it.. Housing benefit helps people on low incomes with the cost of their rent.

To claim housing benefit, you must:

• live in the property you are claiming for
• be charged rent for this property

Hope that helps

Housing benefit is not payable to owner occupiers, never has been. It's only for tenants. There are a few circumstances where a home owner can get housing benefit in a rented property elsewhere but it's still means tested.

joandkaz1

saraann21 wrote: »

Quote:
Originally Posted by saraann21
am in the same boat,had to give up work last year and have a mortgage.because my son who is 19,works,i get no help with the mortgage payments and have to pay about a third of my council tax bill.it is as if they class him as my partner,not my son.they even told me i would be better off if he gives up work!obviously he is not going to do that.i am on interest only payments for the mortgage but it is still hard.people assume when you are on benefits that council tax and mortgage are paid,well they are not!!if things do not improve then i will have to sell aswell

As a working adult, why shouldn't he be contributing half, just as a partner would?


because he is my son not my partner and if he wanted to pay a mortgage or council tax then he would get his own place.not his responsibility for my house.and it works both ways,if he is treated as being responsible then why can't i claim tax credits for his brother on the back of his work then i wouldn't have to be on income support?i was making the point that this does happen,even jobcentre plus told me i should not pay council tax when i am on income support.just letting people know that a child that works means that you do not get as much help.that's all so calm down!!

you should get child tax credit for him if you are a single mother..its working tax you wont get. Its fair that your son should pay some council tax. He is an earning adult not a child.

Mumto3cheekymonkeys

kaya64 wrote: »

I asked the same question and got intouch with shelter, i received some good information back from them.
If you have tried everything to pay the mortgage but still can't affrord it then you are not considered as making yourself homeless, I think the system is silly and unfair when it will pay for a landlords mortgage to be paid but not someone who has their own mortgage, the way i see it , is that the governement are trying to get us to lose our homes and become tennants so we are answerable to them and them only . wicked governments .

As a land lady I find this comment a bit "anti landlords". I have a family in my property the husband of which was working but has unfortunately lost his job, although we originally were not accepting housing benefit we decided in there case we will. Of course there housing cost should be paid, as landlords we are offering a family a home and still have a mortgage although small to pay.

Referring to the unfortunate lady who made this thread, my heart goes out to you. I have too been in the homeless situation and would hate to be there again especially having to give up a home I have worked hard for.
Could your dad not buy you out and then let the property back to you and housing benefit paying it thus paying the mortgage so you still get to keep it?