Complicated..Mortgage on benefits only?

chrissypops

Hi

Im really not sure where to go with this but ill give you some background so sorry if its long winded!

5 years ago I sold my house and moved into my then partners house and paid his mortgage of at around 54k ( house was worth around 70k) we were mortgage free for abit, then took another mortgage out at 43k for a loft conversion, car and consolidated his student loan and a bike loan.

Basically my Ex and I split last May due to him cheating on me and I kicked him out. The mortgage which is now 37k has been paid by myself since although I am on full state benefits plus child tax credits and maintenance. He doesnt contribute to the mortgage at all and his name is still on the mortgage. The term on this is 15 years and the 3 yr fixed interest run out in Feb 2013. Because i didnt want to go on variable, i asked if i could have a fixed term, which First Direct agreed. I also asked if i could have my ex name taken off the mortgage, which in response said they couldnt untill I get a dependable income. I talked all this through with my ex and he had no issues with it and stated hopefully with me fixing the mortgage back in for 2 years, it will give me time to get myself up, with a job ( I have a young son and 2 teenagers) and i will be able to release his name after this fixed rate finishes as he was aware of the penalty fees.

This has been ok until around a month ago when he got involved with someone. He now wants his name off the mortgage, like yesterday. I advised him that my hands are tied. Im still trying to look for a job that fits around family life so i cant be re-assessed for a mortgage in my own right with First direct or most other mortgage companies until I get a job. He has been told that there are companies that WILL take people and give them mortgages soley on benefits and without a job. He has offered to pay my penalty fee if i can move the mortgage and take his name off in the process. Does anyone know who will take someone on a mortgage purely on benefits? I have tried some of the main mortgage lenders , halifax, nationwide but they have stated that i need a dependable income. Any advice would be clearly welcome x

InsertWittyName

I'm sorry I can't help you directly (hopefully others can!) but I just wanted to say that, to me personally, I find it strange that they class benefits as 'non-dependable income' when someone with a job could:

• Be fired.
• Be made redundant.
• Become ill and unable to work.

Yet someone on benefits is pretty much guaranteed to receive them consistently.

chrissypops

InsertWittyName wrote: »

I'm sorry I can't help you directly (hopefully others can!) but I just wanted to say that, to me personally, I find it strange that they class benefits as 'non-dependable income' when someone with a job could:

• Be fired.
• Be made redundant.
• Become ill and unable to work.

Yet someone on benefits is pretty much guaranteed to receive them consistently.

I think its to do with the fact benefits can be changed or stopped or now rather capped. In the financial world eyes, the selection of people who are on sole benefits are more likely to default or not able to repay. If you have a dependable income, it shows your employable and more desirable to loan money too. This is the first time ive been solely on benefits, as ive always worked, but due to the situation I was thrown in, money is tight but I can, luckily enough handle my finances and never defaulted. I totally agree with what your saying though x

Dave_the_Ginger_Cat

Sorry Chrissy, I don't think you'll be able to get a mortgage in your own.

Notwithstanding any discussions on the dependability of the income source, I would expect that you will not meet their income thresholds.

The only thing which occurs whilst you seek a job which willo fit your circs is to seek a guarantor should one of your close family be willing to support you to this extent.

ACG

Hi,

Speak to a broker, i have placed a mortgage for someone whos sole income was benefits. They were different benefits to yours but that shouldnt mean you cant get a mortgage.

The lender at the time was even on the best buy tables, so it does'nt necessarily mean you will be on higher rates either.

But a decent broker should know where to go with this.

Building_Surveyor

to be honest although you MAY be able to get a mortgage, on sole benefits if you were my friend i would not advise you to. If you are actively job seeking i would say just wait.

antrobus

chrissypops wrote: »

....5 years ago I sold my house and moved into my then partners house and paid his mortgage of at around 54k ( house was worth around 70k) we were mortgage free for abit, then took another mortgage out at 43k ....Basically my Ex and I split last May due to him cheating on me and I kicked him out. The mortgage which is now 37k has been paid by myself since .... He now wants his name off the mortgage, like yesterday. ...

Who owns the property?

As in, if the ex wants their 'name off the mortgage', you really want to get their name off the deeds as well.