Changing Mortgage

TheDax

Hi everyone
I am looking for some advice please, my apologies in advance if I ramble but we are getting into a worrying situation and I am hoping that one of you money saving experts can point me in the right direction. Ok here goes, we have had a repayment mortgage for the last 10 years and have brought our mortgage down to approx 50k. Our circumstances have recently changed for the worse as my son has now left full time education and is trying to get a full time job, he is currently doing part time bar work but the wage is minimum and he has irregular hours. Once he left education our working tax and child tax stopped leaving us down by approx £450 a month big shock. I am disabled and unable to work in any capacity, my wife has a part time job of approx 20 hours per week.
I have been advised to change the mortgage to an interest only mortgage as in a couple of months we wont be able to afford to pay all the bills as £450 loss a month is huge to say the leasts.
After to speaking to a several financial advisors who told me my current mortgage provider Birmingham Midshires no longer handle residential mortgages so a interest only deal from them is not an option.
As I am disabled with limited income are there any options I have as mortgage companies wont lend enough to cover my current mortgage and aren't interested in a interest only deal although if I had 30k coming in a year I would be able to reduce my mortgage payments ?!?!? It seems to me that the system is broken, we are seriously looking at selling up and renting but naturally after spending 10 years in our home trying to get it right will be a real shame to have to throw in the towel. This is causing me serious stress any advice please

peter12345678910

I would try to ring Birmingham Midshires and explain the problem. I found them very helpful in changing my interest only to a repayment for a flat on a tracker mortgage last year. Though my problem with an interest only mortgage was that they wanted 80,000 with in a few months and I did not have it and I had fallen out with my mortgage partner and it was not possible to talk to them, Birmingham Midshires just rang the mortgage partner and asked for a verbal confirmation to change the mortgage.

Can you afford 50,000 in a few years? It may be a bigger mess.

Edi81

Changing to interest only isn’t something that a mortgage supplier will want to do without seeing how it will be repaid.

Post a SOA on the dealing with debt board for advice on how to cut costs.

I take it your son, when he is working, will be paying board.

Thrugelmir

Contact your lender. Explain your financial situation in depth and see if they will extend the mortgage term. Thereby reducing your monthly outgoings. Lenders have a duty of care to assist borrowers. Being frank and honest is the best way to approach this.

Switching to interest only does you no favours. As interest rates rise you'll struggle even more to repay the capital balance owed. Hopefully your son will find additional work in due course and then be able to make a contribution to family finances.

TheDax

Thanks all for the comments and advice, think I will try and contact my provider although the last time I tried they just put me in contact with a debt management company didn't find them helpful at all. My lad is awesome he gives us what he can and understands our situation he is trying hard to get a full time job whilst running a car etc (insurance!?!??! poor kids today). I find myself feeling so low I have always been the provider and now feel like a drain on the family, I can honestly say I have never felt so useless in my life.

Thrugelmir

TheDax wrote: »

I can honestly say I have never felt so useless in my life.

Don't despair. You'll find a solution.

If you have other debt issues. Try here for guidance.

https://www.nationaldebtline.org/

peter12345678910

Sorry I did not know that Birmingham midshires have stopped listening they really helped me last year.

I think the advice from the experts that you saw was to get an interest only mortgage.
What they are probably suggesting is to wait for house prices to rise and in a few years to sell the property and pay for a house in full it may need work but your son is young and he can help.