Need help with mortgage payments!

maz3718

Hi

My husband and I have a repayment mortgage with Norwich and Peterborough b.s. My husband is starting a teaching assistant course shortly and has started a part-time job, he has given his notice in at his current full time employment. I have a disability and cannot work, but used to. We have as N&P for help, either as a payment holiday, or just to make the interest payments on the mortgage for about a year. Today we received a reply back from them saying we couldnt have a payment holiday as we havent made overpayments, we can't have interest only repayments as we wouldnt be earning £25k a year, so the only option is to extend the mortgage for up to 40 years!!!! We are both in our late 30's good god!!

Can anyone offer advice please? We really don't want to sell our home, and we don't want to miss payments either. We have about £40k equity in our home.

thanks

danielleindebt

bump - im sure some one will be along to give some advice

hypno06

Have you worked out what your shortfall is going to be each month - this is the amount that you have got to find one way or another to keep the N&P happy, and your home safe.

Prepare a new SOA given the new income and expenditure figures and pop it up on the board and we will see if we can help at all to reduce the shortfall.

Also, OH is now going to be working part time - can he get an additional part time job to bump up the income.

Although you are unable to work, is there anything that you are able to do such as some mystery shopping or starting some kind of ebay business? Are you claiming all the benefits you are entitled to? Have a look on the https://www.entitledto.co.uk site to check. With a drop in OH income you may be entitled to more.

Sorry, can't think of anything else to add, let us know how you get on!

tanith

Hope someone comes along with some other options for you ...... I know its not really helpful but maybe it would of been an idea to investigate your mortgage options before your husband decided on changing your circumstances so dramatically as you so rightly say you don't want to have to sell your home... I hope someone comes up with a plan of action you can take to avoid this...

opalfruits_2

Is the reason you can't afford your mortgage payments because you are also paying towards other unsecured debts? If so, stop paying for the unsecured credit you have and use the money to pay your mortgage, as this is a priority bill and should be the first thing you pay for.

Post your SOA to see if there's anywhere you are overspending on and could cut down

pania

Definately investigate the benefits that you maybe entitiled to and get that SOA up here for us, the mortgage is more important than any unsecured debt you may have so we need to see what the situation is. Good luck, oh and speak to citizens advice as well they may be able to let you know the grounds if any that you can appeal to the N&P with.

bandraoi

Well what happens if you extend the period of the mortgage? Isn't that effectively the same as going interest only with a tiny tiny bit of repayment.

Surely in one year you can change the period of the mortgage back to the one you are on now, or simply start making over payments?

angelavdavis

Will the terms and conditions of the new mortgage allow overpayments? Even if the original term is 40 years, you don't have to keep it for that long, you could actually switch to this mortgage, but overpay it and then remortgage later for less term (because you will have paid more of the capital off). Not all mortgages allow you to overpay, so I would actually check the terms and conditions first.

barnaby-bear

bandraoi wrote: »

Well what happens if you extend the period of the mortgage? Isn't that effectively the same as going interest only with a tiny tiny bit of repayment.

Surely in one year you can change the period of the mortgage back to the one you are on now, or simply start making over payments?

going interest only is extending your mortage to an *infinite length*, so don't get why 40 year term undesirable to you given you asked about IO

Conor_3

As to extending the mortgage to 40 years.

If they're willing to do that, go for it. If you only need to do it for the time he's on the training course, there is absolutely nothing to stop you remortgaging once your O/H is back in fulltime employment and reducing the term so it finishes when it would have.

maz3718

Thanks to you all so much, am a bit thick when it comes to abbreviations!! what is a SOA, thanks