On benefits, re-mortgage possible?

forgotmepassword

Hi,due to disability i am unemployed & receive Disability living allowance, incapacity benefit & income support. This comes to a total of £8.865 per year. I have a mortgage on which i owe £46.500. My house is worth an estimated £175.000. I currently have a mortgage (interest only) with Kensington mortgages.(been with them 2 years) This has now finished its low rate and has shot up to £360 per month,from £230, which i can not afford. Does anyone if i can get a repayment mortgage with my circumstances? Any advice gratefully received.
Thanks.

two_sheds_2

What a nightmare for you.
Shelter might be able to help you:
http://england.shelter.org.uk/advice/index.cfm/setcountry/true/?r=gaw&WT.srch=1&gclid=CPX2_Z3o6I8CFQ4lHgoduTvwYQ&frmAlias=/adviceonline/

forgotmepassword

Hi, thanks for that. Does anyone else have a suggestion? im now desperate. Thanks.

silvercar

Even if your income was from earnings rather than benefits, you are looking for a mortgage multiple of around 5.25. That is going to be really hard to fund and find.

I would consider going for an interest only mortgage in the short term.

I don't know your long term prospects, but if you have no way of increasing your income in the next few years, maybe you should consider selling up and renting.

sarkin

I think your best bet is to stay on interest only for the time being. I can see you are with Kensington, what is your credit history like?

davsidipp

hiya forgotmepassword we are in the same situation as you hubby gets dla we tried a couple of buiding societies who turned us down even though we had a small mortgage with one in the end we turned to mortgage broker in kent who got us one with the woolwich interest only where we paid the other mortgage off and got extra for renovations we pay 250 quid a month for a 50000pound mortgage no fees paid . search around there are some good brokers about.

forgotmepassword

sarkin wrote: »

I think your best bet is to stay on interest only for the time being. I can see you are with Kensington, what is your credit history like?

Thanks for advice.
Ive not missed a mortgage payment with the Kensington. If i stay with them i will still be paying interest only but at £360 a month it is alot.

silvercar

forgotmepassword wrote: »

Thanks for advice.
Ive not missed a mortgage payment with the Kensington. If i stay with them i will still be paying interest only but at £360 a month it is alot.

That is a rate of 9.29%! Is that right?

forgotmepassword

silvercar wrote: »

That is a rate of 9.29%! Is that right?

It actually works out at 9.800%!!!!!!!!!!!!
Now you can see why i'm desperate to get a better mortgage quick.

merlinthehappypig

After I had to take medical retirement we got a mortgage through Intelligent Finance without any problems, but at 3x income, not the sort of figure you are looking at. This was four years ago, so things may have changed in your favour (or not, since the Northern Rock/credit problems).

With prices certainly unlikely to rise over the short to medium term, if not actually fall I would seriously consider selling and renting in your position. You have good equity which will earn a decent amount of interest, the extra income shouldn't affect your DLA or incapacity benefit (but would affect your income support, so take proper advice).

You don't mention any other debts, but, from my experience, it is certainly better to be debt free and have money in the bank when unable to work due to disability than own your own home, at least in the short term.