Big Step Ahead - Shall I?? Advice Needed Please

Ytaya

Potentially a silly question, but given your low income and the fact that it mostly comes from benefits, can you apply for housing benefit? Even a small amount could help you out.

Have you posted a full State of Affairs (SOA)? There's instructions on the main board page, near the top, listed as 'First Time Posters' or something similar. Maybe we could find ways to free up some of your income on a monthly basis, which could give you more options.

misspoppy

Ytaya wrote: »

Potentially a silly question, but given your low income and the fact that it mostly comes from benefits, can you apply for housing benefit? Even a small amount could help you out.

Have you posted a full State of Affairs (SOA)? There's instructions on the main board page, near the top, listed as 'First Time Posters' or something similar. Maybe we could find ways to free up some of your income on a monthly basis, which could give you more options.

Hi The op cannot apply for housing benefit for her current home as she took her mortgage out within the last 10 years. If she moved into rented accomodation she would be able to claim benefit.

KSH I think you need to go back to national debt helpline or CCCS or Paypal and see what they suggest you can't continue like this.

Storm

Hi,

At the moment it would appear that you're meeting your secured debt repayments (mortgage & loan) and your unsecured creditors are happy with the £1 a month token payments - have they frozen interest? If you are worried about losing your house then I'd say at the moment to not rock the boat. Have you spoken to your daughter at all about this? If you can wait until she's through university & settled into a career she might be willing to buy part or all of the house off you then (would also save her the inheritance tax bill at a later date!)

As for whether you might be able to keep the house after BR - I have no idea about this & you'll probably get more information on the bankrupcy board, although my initial instinct would be that if there's quite a bit of equity in the house it doesn't look good.

I hope you find a solution

opalfruits_2

If you end up qualifying for Income Support/Income Based Job Seekers Allowance/Pension Credits then you may be eligible for help with the interest on your mortgage payments from the DWP. There are restrictions on this based on how old you are, when you took your mortgage out and how long you have been claiming one of the above benefits.

It is highly unlikely that you would be able to keep your property if you went bankrupt. I also don't think that the remortgage idea is appropriate for you for similar reasons to what other posters have already mentioned.

If you can afford your secured debt at the moment then I would stick with keeping your current arrangement and paying tokens to all your non secured debt. Although it's horrible to have it looming in the background, your unsecured debt really is non priority and you can always review the payments to this as and when your circumstances change.

ksh123

Hi
thanks to you all for your input. I have decided NOT to take the brokers' offer and have informed him of my decision. He tried to frighten me a bit (in a very nice way!) about possible consequences but I stood firm, lol.
I do feel that, as I am currently meeting my priority bills, albeit with great difficulty, I shouldn't "rock the boat" where my creditors are concerned. Interest is frozen so so far so good.
Yes I have talked to my daughter and she would buy the house but its a long way off as she is only just starting out and wants to do a Phd :eek: bless her!
thanks again everyone

hypno06

I think that you have made the right decision. With increases in interest rates, even an interest only mortgage is going to be an unknown quantity over the next few years, and of course you will have to catch up with the capital repayment of the mortgage at some point.

At least with the £1 token payments, assuming they have frozen the interest, the recent rate rises won't have an impact on that element of the debt, so whilst it is not going down, it is not increasing either.

Don't let any financial advisor push you into doing a remortgage, and good luck with everything. Keep posting and let us know how you are getting on x