Mortgage Due to Finish HELP!

Phoenix3861

Hello all, I am sick with worry here. Long story short. Husband retired a couple of years ago. We had a 3 year plan to get all our mortgage paid off with starting up our own businesses. His health had been suffering due to an infected knee replacement operation before he retired. It hugely impacted our ability to get anything started in the business side of things. That ate away our savings. His knee is still being treated and has been removed and a temporary one put in while they clear the infection in the bone. So his mobility has suffered greatly. Along with that he developed some horrendous neck and headaches that were finally investigated with an MRI late in November. They found a brain tumour and he is currently in hospital after being unable to cope with the pain and his body collapsing on Boxing Day. So that's the health reasons we have floundered badly.

The house, as a result of all the ill health, hospitals and operations has become very neglected. It is old and damp and I try to do what I can but it is very shabby now.

A few months ago also, we got a letter from the bank reminding us that our mortgage is due to be paid off in October. It absolutely terrified me! My husband just hasn't had the time or energy to sort things out for us and did the worst thing ever and hid his head in the sand about it. We just don't have anything left to use to pay it off. Nothing. He is on 3 pensions, one from state and 2 from previous employers.

The mortgage is in both our names. He is now 68 and and I am 55. He was thinking of trying to get the bank to change it over to my name only, to extend the mortgage. I have no other income apart from the carers allowance I get. I did start my own designs for t-shirts but haven't made any significant sales yet. Only made £10 so far. We should be able to survive on his pensions but haven't.

We have been helping out one of our son's financially when we can. He has Asperger's and Ehlers Danlos but does not claim for either. He works driving a taxi. He pays us back in dribs and drabs and often needs to re-borrow bits off us. He's now expecting his first baby in January. Our other son has Ehlers Danlos, depression and panic attacks also and doesn't claim for any of it; he has just started work and isn't able to help out financially either.

My husband has always looked after the finances. I have no head for figures and go into panic attacks when I get flustered with maths. I have my own health issues put on the back burner as hubby takes priority always.

He went to the CAB and asked for help a few months ago and was referred to a financial advice department they use. From what I heard he suggested a few things. Such as asking the bank to extend it in my name. Or to remortgage or to go for an equity release.

Hubby thinks he is too old and ill to get a remortgage. I think they wont let me do it because I have no income other than the carer allowance. Equity release will only benefit the company and we'd have no house for our son to live in with us. His life insurance lapsed at 65 and he didn't renew his or mine (annoying but it's now just a fact).

I now have to try and rescue us and I have NO idea what I am doing, where to turn and if it will all be a total waste of time.

The future looks dismal. I may lose my husband, our house and be left with all the debts. I know the house is only bricks and mortar and there are far more important things to worry about. But our son went into a panic attack when we told him that we had the letter from the bank and were trying to figure out what to do.

I am drowning with all the worry about my husband's tumour but when not worrying about that I am worrying about how to find £88K by October. How to support our sons and what to do with the youngest if the worst happens.

If there is any advice about how I can tackle all this and where to start, to a total novice, with a positive outcome, please comment.

Thank you in advance.

Pixie5740

Is selling the house and downsizing or moving to a less expensive area so that you can purchase a new home outright and option? Alternatively, selling and moving into rented accommodation might be a possibility.

As for your sons, you can't afford to continue to financially support them. You can however ensure that you, your husband and your sons are claiming everything you are entitled to at https://www.turn2us.org.uk

amnblog

What is the property worth?

Phoenix3861

amnblog wrote: »

What is the property worth?

Last valuation it was £250K.

Verix

I'd suggest the first thing to do is to contact your mortgage lender and explain the situation. They can't assist you with anything if they don't know that there is a problem.

If you can come to some agreement with your lender then this would probably only be a stop gap solution. You need to either think about selling your property (I understand this is far from ideal in your situation) or obtaining a mortgage on your own or with your son. If there are any benefits your son can claim I'd get him to start claiming them. There are lenders who can arrange mortgages based on clients with benefit income but most would want some form of employed income to back this up. As your son is working it could work with him doing it with you assuming he would still be looking to live with you. Obviously this is all dependant on the specific figures.

Good luck.

Chapuys

Firstly, your husband could be entitled to allowances such as Attendance Allowance due to his knee being classed as a longer term disability or other recent issues and then if he is eligible you might be eligible for Carers Allowance to look after him. Tax credits are also another option. You really need to talk to someone like your local Age UK, Citizens Advice Bureau or Disability Advice Service (DIAL) for advice.

I know this will be a pain to hear, but you cannot afford to support your children anymore. They should be able to accept this just on that basis. If you are concerned about their disabilities then you need to speak to them about checking if they are eligible for state support too through PIP. I understand that they may not want to 'claim' off the state but financially they either must need this or have just been asking for money and you have given it to them. Having a child is irrelevant as they should be able to claim Child Benefit and obviously should be planning for the little 'en. Obviously I don't mean cut them off an not do anything for your grandchild, but I mean you need to be realistic about your financial position when providing any financial support.

Talk to your children about your hardship might help. I would also speak to your bank because obviously, you will not be able to pay back the mortgage due to a change in circumstance. They must treat your fairly but be prepared to think about moving or downsizing. You really need to speak to Citizens Advice, Age UK or a charity such as https://www.turn2us.org.uk to get options.

AnotherJoe

Can you get a job instead of Tshirt designs, which sounds pretty fanciful as a way of earning money??

If your kids are old enough to drive a taxi / have their own children, they should be old enough to stand on their own two feet, trying to support them obviously isnt helping you and it now seems as if its financially beyond you anyway.

You are right, you will not get a mortgage on your own if you have no income and you certainly cannot just transfer the mortgage to you. Its possible though that your husband, or the two of you (especially if you had an income) might get one on the basis of his pensions. How much do they come to in total?

Or maybe a mixture of downsizing and a smaller mortgage woudl work, depending how much he could borrow.

And start claiming all the benefits you can and that goes for your kids also.

Good luck to your husband with his operation.

amnblog

An £88K mortgage on a £250K property does not sound like an insurmountable problem.

Go back to the CAB in the first instance as you need some sensible advice from suitable people.

erin110

How much is your husbands combined pension income per year and do you have any personal debt?





There may be lenders that can offer you and your husband a mortgage regardless of his health as long as the income is there. This will avoid involving your sons. Your family really does need to claim for everything they can do though as this will really help you out.





The only other option is to downsize as someone above has mentioned. You may be able to then live mortgage free and pay off any potential personal debt you may have. It may not be ideal as you will not be remaining in the family home however, far less stressful.





Your next step should be to speak to a mortgage broker as there are way too many questions and alternatives.





Wishing you all the best.