Income support mortgage payment reduction

mummytofour

Hi guys,
I'm just wondering if you can help?
I get help with my mortgage from income support due to being on carers allowance. I have just found out that they rate they pay has gone done by I think £17 a week, £68 per four weeks. As it was I was already having to make up a short fall of £222 per four weeks so now I'm going to have to find £290 per four weeks.
My mortgage is intrest only and £710 per month, with mortgage express. Mortgage express are not at all helpful and it is their huge greedy intrest rate which is making things difficult. ME charge a lot more than other lenders. As I'm on IS I understand I can not get a mortgage to change lenders but I'm wondering if there are any other options? I don't have a huge amount tied up in this house, I think it was the worst buy ever, 9 years ago as its put on such a small amount compared to every other house in the uk!
However it's the kids home in a good area and due to their difficulties, I don't really want to move.
I'm just wondering if there is any options, what I would really like to do is pay less intrest on my mortgage, so it's inline with the Bank of England rate.Has anybody come across such a scheme for somebody in my situation?

Thank you

10pence

The interest rate for SMI (Support for Mortgage Interest) is as follows;

The standard interest rate used to calculate SMI is 3.63%. From 6 July 2015, the rate will be 3.12%.

Mortgage Express will be a sub-prime lender and therefore their rates will be higher.

You're correct in thinking that no main stream lender will lend to you due to current circumstances; new mortgage rules came into force earlier this year making lending even more difficult.

Options are simple; find the money (job - possibly), or sell the property.

Suarez

Sounds like quite a large mortgage to be financing if you're paying £710 interest only. Do you have enough equity to look for a cheaper property?

NYM

What interest rate are you on currently ?

tea-bag

You have no option, sell up, pay the money or get a job. The rate is to high as it is and people have been getting there mortgages paid off by the tax payer! The rate is still to high. It should be near 1% max Or a levy put on the house to pay it back.

BoJangles_2

tea-bag wrote: »

You have no option, sell up, pay the money or get a job. The rate is to high as it is and people have been getting there mortgages paid off by the tax payer! The rate is still to high. It should be near 1% max Or a levy put on the house to pay it back.

Mortgage interest is paid off I believe, not the mortgage itself.

bloolagoon

BoJangles wrote: »

Mortgage interest is paid off I believe, not the mortgage itself.

It depends on your rate. People like OP with poor credit and subprime lender will have to pay to cover interest. Others may have a very favourable rate and the amount can cover capital.

missbiggles1

Have you made any moves to get any money out (by rent or equity release) of the house you jointly own with your father?

cattie

tea-bag wrote: »

The rate is to high as it is and people have been getting there mortgages paid off by the tax payer! The rate is still to high. It should be near 1% max Or a levy put on the house to pay it back.

Nobody has had their mortgage paid off by the tax payer! Only the interest payment qualifies for help from the state, not the actual amount to repay a mortgage. And as demonstrated here, not everybody who qualifies for housing costs via DWP will have all of their interest amount covered, so are left with a shortfall, which can rapidly lead to them getting into arrears, followed by repossession.

sammyjammy

cattie wrote: »

Nobody has had their mortgage paid off by the tax payer! Only the interest payment qualifies for help from the state, not the actual amount to repay a mortgage. And as demonstrated here, not everybody who qualifies for housing costs via DWP will have all of their interest amount covered, so are left with a shortfall, which can rapidly lead to them getting into arrears, followed by repossession.

I'm afraid you are wrong. Mortgage interest is paid at a flat rate of 3.63% (currently) if someones mortgage interest rate is set at BBR which is currently 0.5% or anything inbetween the two the sum paid by the government will be repaying the capital of their mortgage as well.

tea-bag

cattie wrote: »

Nobody has had their mortgage paid off by the tax payer! Only the interest payment qualifies for help from the state, not the actual amount to repay a mortgage. And as demonstrated here, not everybody who qualifies for housing costs via DWP will have all of their interest amount covered, so are left with a shortfall, which can rapidly lead to them getting into arrears, followed by repossession.

WRONG! If your mortgage rate is below 3.12% the extra money pays off the capital. Lots of people when it was over 6% got loads paid off if you was on a tracker and the interest rate dropped to 0.5%.

And if people get into arrears they have a choise to sell, they made a decision and commitment to own a asset if you can no longer afford that asset it is time to sell why should the tax payer pay?