Re-mortgage for 60 year old with bad credit

Loug

Due to circumstances out of my control, my Dad died, my husband walked out and left me supporting 2 children, caring for my Mum with dementia, I had a heart attack caused by stress, my brother stopping Mum paying me expenses for looking after her, my buy to lets all needing double glazing, my child tax credits were stopped due to a mistake, so a college bursary wasn't available. etc etc etc and now I am paying a 4.24% interest only mortgage with 7 years left at over £2k per month. I am now 3 months behind and truly worried. My Mums finances have been frozen as my brother is being investigated re POA and I am also now supporting my Mum. Oh my, I am struggling on my own and don't know what to do. I went to the mortgage company as soon as my husband walked out asking for a reduction in the interest rate which they refused. I asked for a payment holiday but I was one day over and they refused that to help me out and I couldn't pay my mortgage that month, for the sake of one day, so this has continued and I couldn't catch up and then fees, on top of fees. I have worked hard, done nothing wrong and yet life has thrown me all these problems one after the other. I can't even divorce my husband as I don't have the money. I don't have much money in the buy to lets but at least they do give me a bit of income but not enough to pay my home mortgage especially now I have to pay for my Mum's food and consumables. I was just keeping my head above water but last summer a lot of income was suddenly pulled from me. I kept ringing up the Child Tax Credit Office and they kept sending me the same letters saying I wasn't entitled to any although I have a son at college he is 18. Its difficult to see why I am penalised with a high rate when I am trying to get out of the situation, its like a mire sucking me into its depths whereas people with money languish with low payments. If I had their rate of mortgage I wouldn't be in this position and could manage. Sorry for the rant, any ideas would be appreciated.

glosoli

A £2,000 monthly repayment on interest only at that rate would indicate a mortgage balance in excess of £500,000, do you have any equity at all to allow you to downsize?

Assuming you are in arrears at the moment, is there any chance if you got out of the arrears they would agree to a new fixed rate? I know generally applications cannot be done whilst still in arrears but normally possible once out.

You mention you have buy to let(s), how much equity do you have in these? Is selling one of them an option to free up some funds or have you checked to ensure that there is no better rate of interest available to those mortgages?

Number75

Selling one of your investment properties seems the obvious answer - how much equity do you have in each of those?

ACG

I do a lot of adverse, but I can not see there being any lenders who will lend to you whilst you are in arrears on your Mortgage, you would probably need to clear them and keep on top of them for 12 months before finding a new lender however even then it would probably be at a worse rate then you are currently paying. Although once the arrears are cleared, your current lender may allow you to switch to a new product?

glosoli - I have the balance at closer to £140-150k.

Could you not sell the BTLs and clear the arrears/pay a chunk off your mortgage?

Alternatively, if there is plenty of equity in your home you could sell that and downsize/downgrade.

There is no magic pill, something will have to give.

Loug

Trouble is the buy to lets bring in over £500 per month for me and I don't have much capital in them. I was managing ok up until last August when everything was pulled from under my feet, double glazing for most properties and now I have to pay a share for a balcony to be fixed even though it isn't my flat. I have extra expenses paying for my Mum as well. My husband walking out giving me one days notice and finding out he had been having an affair and lying to me as well and because he was self employed he didn't show a profit so he didn't even give the children pocket money, all suddenly on my shoulders. My Dad would have been able to help but sadly my rock had departed my life. Now also caring for my Mum putting on a happy face and saying everything is fine in my life is so stressful. Yes Mum, no problems. I still have my husbands rubbish in the house and in the garage, I don't have the money to have it taken away. Sorry...........

Neutrinno

ACG wrote: »

I do a lot of adverse, but I can not see there being any lenders who will lend to you whilst you are in arrears on your Mortgage, you would probably need to clear them and keep on top of them for 12 months before finding a new lender however even then it would probably be at a worse rate then you are currently paying. Although once the arrears are cleared, your current lender may allow you to switch to a new product?

glosoli - I have the balance at closer to £140-150k.

Could you not sell the BTLs and clear the arrears/pay a chunk off your mortgage?

Alternatively, if there is plenty of equity in your home you could sell that and downsize/downgrade.

There is no magic pill, something will have to give.

On repayment yes, she said interest only over 7 years @ 4.24%, this would indicate a balance of around £600,000!

hopefulsoph

Hi I'm sorry i can't help with any financial advice (I'm here looking for my own 😂) but I couldn't read and run! You sound so resilient (even if you don't feel it at the moment) for dealing with all these difficult situations you didn't ask for! I admire you! Keep looking for solutions on here and wherever you can, there will be one for you! Keep going!

ACG

Neutrinno wrote: »

On repayment yes, she said interest only over 7 years @ 4.24%, this would indicate a balance of around £600,000!

Good shout, I missed that.

glosoli

Normally if someone has a residential mortgage of £500,000 to £600,000, with further buy to let borrowing in the background, the income being used would have to be in excess of £125,000 gross per annum, and the fact tax credits etc are mentioned would indicate you are nowhere near that level. Just cannot see how the situation can be sustainable into the longer term. It might be an idea to post a Statement of Affairs on the debt free wannabe board to see if anyone can give you any further advice on it.