Income support mortgage payment reduction

NYM

SMI was fixed when the base rate was quite high so it was quite generous (Bank of England base rate + 1 % ) until October 2010

If the payment was more than the interest payment then the extra money was credited to the mortgage i.e. it paid off some of the capital.

bloolagoon

NYM wrote: »

SMI was fixed when the base rate was quite high so it was quite generous (Bank of England base rate + 1 % ) until October 2010

If the payment was more than the interest payment then the extra money was credited to the mortgage i.e. it paid off some of the capital.

It will reverse soon. Rates will rise and the SMI will be lower so you can expect people to pay more until they catch up.

BigAunty

Shelter has a section on their website for home owners at the risk of arrears or repossession.

There used to be a scheme whereby a social housing landlord would buy the property of a distressed owner who had dependents or disabilities and grant them a tenancy to live there (and the ex owner/new tenant could claim HB as the 5 year rule that forbids HB to ex owners who continue to live in the property does not apply in this circumstance). I don't know if it still operates but Shelter will know.

NYM

The OP posted recently that the property is jointly owned...

My mortgage again never missed a beat is in joint names with my debt ridden ex. I'm currently divorcing him and will be getting a consent order so that the house is totally mine, I can't get a new mortgage due to income.

mummytofour

missbiggles1 wrote: »

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

You still chasing me?!? I don't jointly own it, I have had it checked out. My parents were married and because of this my mothers half passed to my father. It will upon his death, which I hope not for many years will then pass to me. They were not tenants in common

mummytofour

Well one way or another I'm going to have to do something, like move as to top it all the 24/7 screaming fighting and dope smoking is doing my head in, from my neighbours.

This is a good street in a good area and some people just destroy that for everybody else x

mummytofour

tea-bag wrote: »

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?

I didn't commit to an asset, I commited to a roof over my head. Before I was in shared ownership after being homeless. The shared ownership property was too small for my family due to my kids needing more space, asd means they need a calm environment. I could not afford to rent something bigger in the county even if I had of found a private landlord who would of taken on kids. Plus asd means a stable enviromrnt is helpful to managing the condition, not something that we would have been easy to get with a private landlord.
So I did the best for my kids and moved 30 miles to get a house to meet their needs. I have pretty much always worked/studied and so has my ex to support the family.
We split up because of stress and I still worked full time until last August when I pretty much lost the plot, of trying to manage everything.
I have now found out I have a neurological condition which is affecting my health so probably won't be able to work for a while.
I don't give a rats !!!! about the money in the house. I just want to be in a calm place, which meets my kids need. We live in the South East which is massively expensive, I grew up in this county and it's my home and the kids, we don't want to move area but currently I will move if it means I don't have these horrible neighbours and don't have to worry about our safety and finances.
Not everybody on ISM is out for the government to pay their mortgage. If I rented HB would be twice as much. However, I would gladly not be Any position where I don't pay my own way

[Deleted User]

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.

many people pay around 4% SVR for their mortgage,and remember that there is also a 13 week waiting period
if you have nothing helpful to say I often find it best to keep quiet:)

bloolagoon

You are aware that SMI is to be a loan in the budget and that your house will have a charge on it for your SMI

Janetta

Hello,
The reality of this is you apply for social housing whilst you are in the property explaining you cant meet the interest only payments shortfall.
Find a job if you can if not the reality is you have to sell.
I know whats its like to have to sell the children's inheritance, the hassle of juggling kids & finance. At the end if the day the money you are paying for the shortfall, when you sell up could be used for other things - yes the house may be desirable - but is it worth the stress ... If you can afford to work, borrow beg etc to pay do - if not just sell up. You will be fine, the kids will understand & you will be less stressed worrying about bills, solicitors letters etc

How do i know - had to do it myself.