What happens when you can't pay the mortgage?

aliasojo

Our mortgage is on a very low tracker rate, the interest is only £60. No option to change to interest only.

What's the worst case scenario in the event of difficulty?

aliasojo

Got another question...

We have the option of getting cash from a credit card (2.9% fee and 0% interest for a year). Would we be better to get hold of this cash now so we could at least pay the mortgage for longer in the hope OH would get another job and figure having a cc company after you if the worst comes to the worst, is better than a mortgage company iyswim?

zzzLazyDaisy

aliasjo, if you move home and the house with the mortgage is your main residence, you will be able to get assistance with your mortgage after 13 weeks, once the capital from your OH's redundancy pay has dropped below the limits for getting assistance (although you will of course need to be aware of the deprivation of capital rules, you can pay any debts that are already due and payable).

Obviously, if you just stop paying the mortgage, the house will be repossessed eventually, but I don't know the time scale for that.

Upsidedown_Bear

Shelter have lots of useful information.

www.shelter.org.uk

ETA
This tells you about the support for mortgages scheme if you will be claiming certain benefits.

https://www.gov.uk/support-for-mortgage-interest

worried48

I'd get the cash from the card. Not paying your mortgage means you will eventually lose the house, not paying a credit card just means a CCJ. No contest.

Don't go for payday loans or anything like that, but you've been on here long enough to know that I am sure!

poppasmurf_bewdley

I don't think you will get cash from a credit card at 0%. Most 0% CC deals I have seen specifically exclude withdrawing cash. The 0% only applies on purchases.

Legion90

Is it possible to do a super balance transfer? I know my Tesco card allows transfers to my current account although I'm not sure what the interest will be?

AFK_Matrix

Legion90 wrote: »

Is it possible to do a super balance transfer? I know my Tesco card allows transfers to my current account although I'm not sure what the interest will be?

It's usually a 4% fee to transfer an amount from your Credit card to your bank account.

aliasojo

AFK_Matrix wrote: »

It's usually a 4% fee to transfer an amount from your Credit card to your bank account.

Unless you have an offer from your cc provider, as we do.

InsertWittyName

If I remember rightly from another thread your OH is being made redundant.

Is he receiving a redundancy package - if so, what is this being used for?

mrsrwallace

we had not paid our mortgage in months as we had similar job loss experience and my advice would be to contact the mortgage company asap and explain your circumstances BEFORE you actually miss a payment. Our lender was generally helpful and we are now back on track (ish!). Get money advice from CAB and check out any assistance schemes in the UK if you can. In N.Ireland here there is no such help unfortunately.