Will I lose the house?

Hi everyone,

Been watching for a while, amazed by the number of good people out there prepared to help others.

I have a £70K mortgage with Halifax (to finish 2017)
Had to stop working 1 year ago (stress related depression)
Wife PT only (2 young kids)
Halifax took nil payment May - Oct 2004, then £300/month since.
Sold both cars & paid £6K off mortgage June 04
Interest still being applied :(

Just about managing up till Feb 05 when DWP stopped IB, I'm retraining but won't qualify until Sept 06, tried getting work part-qualified but no chance at mo (37 applications in last 2 months, 16 refusals, 21 no reply :mad: )

If Halifax suddenly decide they want full payments again (£610/month) then I don't know how we'll cope - only obvious solution is sell the house (MV approx £165K)

I really DON'T want to have this happen, the whole situation has put a terrific strain on my relationship with my wife & kids, losing our house will crucify us. - May sound selfish, I have read many posts and realise there are a lot of people in a much worse position than us.

Thanks for reading - it's good to be able to get things off my chest, although friends and family know we are "hard up" at the mo, they are not aware of how serious the situation may become.

Any advice or comments greatly appreciated.

Ben
Well, I don't know anyone named Obi-Wan, but Old-Ben lives out beyond the dune sea. He's kind of a strange old hermit.
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Comments

  • myfairlady
    myfairlady Posts: 121
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    Im new here too and its just nice to know that your not alone. Of course there are always others that are worse off than yourself but your own deal is whats important to your everyday life.

    Im sorry to hear about your stress related problems, that is never an easy one and does place a great strain on partners and family.

    Look at all the positive things you wrote: You sold your cars and you paid off some debt, your retraining, your looking after a wife and two young children- well done! and last but not least your thinking about your situation and trying to do something about it! All of the above are commendable.

    I know you dont want to sell your property but it could be a way out for you as a last resort. It would be unsettling but at least you have that equity.

    Are there any family members you could turn to for help? I know its hard to admit to others that you need help but its got to be worth a try.

    Try and keep a positive frame of mind and look at what your spending. There may be other ways you can cut back.
    The best and most beautiful things in the world cannot be seen or even touched - they must be felt with the heart....
  • sunflower_2
    sunflower_2 Posts: 1,471 Forumite
    is the £300 that u are paying just to cover the interest?
    cos if so, am sure they would be happy with this until u get yourself sorted?

    alternatively u could try and get an interest only remortgage until u got yourself on your feet? then switch back to repayment?

    from the advice i have received in the past - reposession is the last resort
    and as your problem is short term, i doubt a judge would allow them to take your family home... at least u r trying to pay :A

    but am sure someone who knows a lot about this subject will be along to help u shortly

    good luck

    [img]http://smileys.!!!!!!/cat/36/36_1_39.gif[/img]
  • Malestrom
    Malestrom Posts: 983 Forumite
    You say 'just about managing upto Feb 05' so does that mean that you are currently unable to pay the mortgage or other expenses? Is your retraining on a full-time basis and preventing you from working? What agreement do you have with the Halifax - you must have something in writing if they gave a payment holiday and are now taking reduced payments, is this due to you paying 6k as a lump sum?

    Sorry for the questions but its not really clear whether you're currently struggling or whether you're just worried about a change of circumstances. Also, if you want to post a full income & expenditure list then we may be able to help save you money in other areas.
    He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)
  • Paul_Varjak
    Paul_Varjak Posts: 4,627
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    You do not say if your training is part-time or if you have applied for Jobseekers Allowance. I believe you can get Jobseekers Allowance whilst training provided that the training is only part-time (not sure on the hours) and you are actively seeking work.

    If you can get Jobseekers allowance, then maybe the Jobcentre can also help out with re-training costs.
  • Old-Ben_2
    Old-Ben_2 Posts: 15 Forumite
    Thanks for the quick replies - much appreciated.

    Family help - my father has offered to lend me some money - not interest free I might add, not a great relationship with him (he left my mother, brother & I when we were young) If I'm backed into a corner I'll accept his offer, don't get me wrong, I do appreciate it but I suppose pride stops me at the moment.

    The £300 is simply an agreed monthly payment - interest is being applied to the full balance each year.

    Thanks for the info re: repossesion, it is good to know.

    Ben
    Well, I don't know anyone named Obi-Wan, but Old-Ben lives out beyond the dune sea. He's kind of a strange old hermit.
  • Old-Ben_2
    Old-Ben_2 Posts: 15 Forumite
    The Halifax arrangement was initially a six month nil payment (in writing) then a three month reduced payment (£300). Since then we are in the middle of another 3 month reduced payment which finishes in April. When I phoned them in Jan to ask for the £300 payment to continue for 6 months I was told that they would not do more than 3 at a time (they confirmed in writing)

    Re: JSA - While I was claiming IB I had help from a Job broker, he suggested I set up as self employed to increase FTC & WTC payments - am waiting to see his line manager (an expert in these things) at the mo.

    I spend about 24 hours a week studying - one full day at college plus study time.

    Up until losing the IB we were coping covering outgoings including the £300 mortgage - guess that losing the IB has really woken me up to the fact that I need to do something to be able to not only cover that but also increase it upwards.

    Ben
    Well, I don't know anyone named Obi-Wan, but Old-Ben lives out beyond the dune sea. He's kind of a strange old hermit.
  • Spendless
    Spendless Posts: 23,997
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    Hi Ben

    Have you informed tax credits of your change in income?
  • Old-Ben_2
    Old-Ben_2 Posts: 15 Forumite
    Hi Spendless

    Not since I lost IB - was going to wait till after April 6th, 'spose I keep thinking I might get a job offer!!

    I informed them last year when I lost my income, and then in October when the IB went up from £55 - £66 a week

    Ben
    Well, I don't know anyone named Obi-Wan, but Old-Ben lives out beyond the dune sea. He's kind of a strange old hermit.
  • thaylock
    thaylock Posts: 234 Forumite
    Ask the halifax to change the mortgage to an interest only mortgage until your financial situation has improved, this should save you several hundred pounds per month. Mortgage companies don't much care about the capital being paid back as long as they get the interest, they will of course care about how the capital will be paid at the end of the mortgage term.
  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    you need to talk to the Halifax, if they are happy for you to have reduced payments then they are not going to ask for the house. if you can switch to a repayment only permanently you will be able to make the payments and sort out the capital sum to be cleared when your circs improve.

    i really dont think you need to worry about repossession while you are still talking and making arrangements with the Halifax. if they do take you to court there are so many different offers you could make you would need to get advice, just keep ringing them and making as much as you can pay on time.

    Oh and just to make sure, have you reduced credit cards and loans to minimum payments, it is more of a priority to keep a roof over your head than pay off those cards.
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