Re-mortgage while on income support

IsThisUserNameTaken

I was hoping someone would know, or know where I could find out some facts/advice for the situation I'm in. I'd appreciate any input or anything that might help me work out what the score is really.

I bought a house several years ago, solely in my name. I was easily able to pay my mortgage then. I am now a single mum, bringing up my young child, for whom I have sole responsibility. I did go back to work after maternity leave but even with any governmental support was unable to cope and had to give up work. I am currently living on Income Support and the usual benefits. I hope to return to work in the next year or so, but looking at my options see that if things were to stay as they are, I'm likely to be in the benefits system for a number of years still, I'm hoping to be able to support myself without this and am looking ahead at options so as to maximise my chances of being independent again.

My hope would be to relocate, buy somewhere cheaper, thereby reducing my mortgage, relocate to a cheaper area of the country where the population is denser and employment opportunities for me are greater, and without such commutes as I have had where I now live so that I'd be more able to juggle work and my young child.

I have a good mortgage deal, with no tie ins and apparently transferable mortgage, yet despite the intention of moving being to make the mortgage and cost of living more affordable, because I'm on these benefits, I'll fail affordability criteria, though on the flip side the mortgage would be more affordable than the one I currently have so as far as I can see it's just red tape which is the issue. I would like to remain with the same lender, I don't believe that I have a hope of getting a mortgage with a different lender anyway..

Does anyone know whether I have rights in this case, and what they may be? Or where I could find out? Can an existing lender refuse a re-mortgage, using an argument of it being un-affordable, when the purpose is to make it more affordable than the existing mortgage I have with that same lender? The mortgage I have allows ports, so theoretically there is absolutely no reason for the cost of a mortgage on a cheaper property to be greater than they are now. I'm wanting to borrow less, not more.

minimike2

You need to present your situation to your lender. Yes, you could be declined on the grounds of affordability, however there are instances where lenders may agree to this scenario if your level of lending is not increasing - it all depends on the lenders own policy on the scenario and if they do allow the scenario then it tends to be reviewed on a case by case basis. I have seen similar scenarios agreed and also seen similar scenarios declined. A broker would be the best place to start with this.

IsThisUserNameTaken

Thank you. That's really helpful to know. When you say a broker, do you mean an independent mortgage broker? Do you happen to know how to contact the bank/lender to request the review on the basis of my case please?

minimike2

Yes a mortgage broker.

They would be able to discuss the process as it may vary between lenders.

davidmcn

A "remortgage" is a replacement mortgage for a property you already own - you seem to be talking about a mortgage for a purchase?

dimbo61

You seem to be talking ! about 2 very different things here?
1 You have a Good mortgage on the property you currently live in
2 You want to sell up a move a another area where you can find work and get off benefits

So is the father of your child helping with child support ?
Any family or close friends who could look after your child while you went to work even part time ?

What kind of mortgage rate/deal are you on at the moment ?
Could you get a better deal " Online" with your existing lender?

Caz3121

IsThisUserNameTaken wrote: »

I am currently living on Income Support and the usual benefits.

do you get any support with the mortgage interest through SMI?
if so, have you checked whether you would get any assistance if you moved?