Mortgage rescue scheme

booboobirdy

HI



I am hoping someone may be able to give me some advice.



My Mum passed away a month ago and left me and my brother thehouse (which I live in now and did so with my Mum) The house is worth apx£170,000 and we still owe £50,000. I am on disability benefits and my brotherhas a default on his credit report and we can’t get a mortgage – we have triedeverything possible but it seems no lender will lend us the money.



I have heard about the Mortgage rescue scheme through the Government– does anyone know if I would be able to apply for the equity loan, where theylend us the money to pay Santanderoff then we pay them back? I find it very upsetting to talk about this on thephone so can’t face ringing them as it’s still so raw about my Mum.



I am due a major operation in 8 weeks and the thought ofhaving to move house is making me ill.



Thanks



Sara

holly_hobby

Hi there,

Firstly, I'm truly sorry for your loss, at which time uncertainty over your home will be making an unbareable situation even worse .... I'll try to help as much as I can.

My first question is have you spoken to the current lender regarding Mums passing, and if it is possible to effect a new mortgage (following Mums death) into your name ?

You mention your brother, is his inclusion purely due to income re your benefit situation ?

Obv income will have to suffice to have the property and a mge effected in your name - but there are lenders that do consider and treat an element of certain benefits as income (disability being one of them), and where possible they will try to assist.

Secondly, have you ensured that you are in receipt of all qualifying benefits.

Thirdly, it would be advisable to have a chat with Shelter (England or Scotland) whom are a homeless charity and are exceptionally good, and from what I gather much more savvy than CAB in such circumstances - http://england.shelter.org.uk/get_advice.

Ultimately, you may have to face the fact of selling the property to redeem the os 50k mge in Mums name - which the lender has a right to demand.

Due to your disability, and potential forced homelessness (should this transpire), you should be placed fairly quickly in appropriate (to your needs)social housing (if private isn't affordable/appropriate/suitable).

Any os liabilities of Mums shall have to be settled out of the free equity realised upon any sale of the property too - but I'm sure you're already aware of that.

So to top and tail ...

Firstly speak to the lender - explain the situation and ask for their guidance and assistance in retaining the property (via transfer of ownership).
Secondly speak to DWP check your benefit entitlement
Thirdly speak to Shelter for guidance and assistance in dealing with the lender if reqd.

Hope this helps

Holly

Depth_Charge

Hi

Useful CAB guide on the Mortgage Rescue Scheme (MRS)

http://mymoney.nedcab.org.uk/moneyadvice/mortgagerescuescheme.asp

holly_hobby

Good link DC, unfortunately thats the problem, the OP isn't actually the current mortgagor in this case.

Also at 170k MV - if not located in the South or East of England, they may well also fall foul of the max value cap in any event.

H x

Depth_Charge

holly_hobby wrote: »

Good link DC, unfortunately thats the problem, the OP isn't actually the current mortgagor in this case.

Also at 170k MV - depending where they are located, they may well also fall foul of the max value cap in any event.

H x

Hi

Yes, just read their post again and see what you mean