Can I half my Mortgage Payments? Joint mortgage, 1 person now died.

Geebs

I'm in quite a bit of a screwed up situation atm, and need some help. I have a joint mortgage with my mam, she has now died, so I will soon be struggling to pay it on my own. It only has 3 yrs to go and I owe about £7k.

It is with C&G from Lloyds TSB, does anyone know if its possible to half the mortgage payments and take it over 6-7 yrs? I am unemployed, received Income Support and Disability Living Allowance, and I also owe £3.5k on Lloyds TSB credit card.

I simply cant afford to pay all the mortgage and gas, electric etc. I can pay mortgage if I dont pay gas, electric and water bills.

Any advice is greatly received.

Muscle750

I doubt if they would extend it for one second as you are unemployed, I also gather your mother had no insurance policy in place incase she did die etc or any other form of insurance etc.
Firstly how old are you and secondly i would get onto the social services/benefits system etc and see just what you are intitled to. They wont pay all the mortgage but anything is something less you got to find.
How much are your monthly repayments ?

Geebs

Payments are only £204 a mth, she has life insurance, and I'm sorting them out now, but that will prob only cover funeral costs. With both us not working, and she was on pension we couldn't take out mortgage insurance. I'm 35.

ACG

Was it a joint mortgage?

If so, speak to the lender - let them know the situation. Best to do this sooner rather than later. Im not sure what benefits C&G/LLoyds accept as proof of income. However if you discuss it with them they may allow you to extend the term of the mortgage to something more affordable, especially if it only has a few years to run the balance wont be high on it at all so the risk to them is negligable.

Geebs

Yes a joint mortgage. Just checked I owe £7.5k, got another 3yrs 5 mths to pay it off at £204 a mth, so it aint a lot really. I can pay the mortgage if I really need to, but would like it half if possible. If I had to pay it, I'd have to miss out on gas, electric, water, home insurance or Credit Card. Couldn't afford to pay all.

CBR600F_2

Sorry to hear about your mother.

Why are you unemployed?

holly_hobby

ACG has given good advice, speak to your lender asap .

Reposession is always a lenders last desire, to which they will normally try and work positively with you to reach a solution, especially if previous conduct has been good.

I am sure that you have already done this, but ensure that you are in reciept of all eligible social benefits and financial assistance, and investigate what mge assistance they may provide (if an imminent return to paid employment is not possible).

Hope this helps ... at a time which must already be so very difficult for you.

My best wishes to you

Holly

HappyMJ

Geebs wrote: »

Yes a joint mortgage. Just checked I owe £7.5k, got another 3yrs 5 mths to pay it off at £204 a mth, so it aint a lot really. I can pay the mortgage if I really need to, but would like it half if possible. If I had to pay it, I'd have to miss out on gas, electric, water, home insurance or Credit Card. Couldn't afford to pay all.

It is extremely unlikely they will ever repossess the property on that level of debt. You can opt to pay interest only and get the DWP to make those payments for you and any excess interest over 3.63% can be capitalized onto the mortgage and it will still take a very long time for them to even consider drastic action if ever.

Credit card though should be one of the first expenses you should consider reducing to the minimum repayment and if that is still too much then you can reduce that one further still.

DVardysShadow

Your interest rate is 7% I think. So anything over £50/month will cover interest and pay the mortgage down. Your problem will arise if Lloyds start playing silly gubbers and putting you in arrears, slapping all kinds of charges on you. Or if they decide that because the FSA has instructed lenders not to lend to people who cannot afford it, that they will not let you take the term beyond the existing term.

I suggest you take the problem to the DebtFreeWannabe forum, and ask specifically about extending a mortgage where you can pay interest and pay capital but not meet the term of the mortgage - and how to go about it without having loads of charges slapped on you.

Geebs

ok thanks everyone, advice is much appreciated.

torbrex

Sorry to hear of your mother

Was there no insurance policy linked to the mortgage and possible death of one of the joint holders?