Mortgage term ending and I'm falling short

StillShallow

Hi folks - I need some sane suggestions - my financial situation has drastically changed in the last week and I'm starting to panic.
My 30k Halifax interest only mortgage ends this month and I'm £5600 short because the money I had earmarked to pay it has effectively vanished (it's a family thing, don’t ask). I’ve also just had my working hours cut in half so now I don’t qualify for any of those 0% credit cards etc. Halifax have said they won’t remortgage me and given me 3 months to pay up before they call the debt collectors. Has anyone got any ideas? – I can’t be the only person who’s ever fallen short at the last minute. And also, are Halifax allowed to do this? – I made all my payments on time for 15 years and suddenly it’s ‘pay up and p*** off’

Thrugelmir

For 15 years you knew that the debt had to be repaid. More recently you would have received written reminders. A couple of weeks to go is leaving matters late. The lender has done all they need to. 

Have you applied for an unsecured loan?  The balance is too small to be considered for a mortgage. 

amnblog

You may find that putting the property on the market to sell gives the Lender some reason to ‘put the brakes on’. 

This may give you time to make alternative arrangements.
If you have some decent equity and are near retirement you might wish to consider equity release where your current income is not a factor.

Moneyminded

How much money could you realistically get your hands on in the next 3 months? Could you get a second job temporarily? Have you got anything you could sell that you don't need anymore? Any family or friends who could loan you the difference? 

StillShallow

Thrugelmir - firstly, yes, i know it's late that's why I'm stressing - a family member has been promising me this money for the last 3 years and it was all still happening when I saw him 3 weeks ago but yesterday he phoned to say he'd decided to move to spain so I couldn't have it anymore - more fool me for trusting them.
Secondly - I thought unsecurred loans are dependant on income? - on paper my annual income is only £8.4k - in reality I'm getting temp work but it comes and goes . .

StillShallow

amnblog said:

You may find that putting the property on the market to sell gives the Lender some reason to ‘put the brakes on’. 

This may give you time to make alternative arrangements.
If you have some decent equity and are near retirement you might wish to consider equity release where your current income is not a factor.

How would putting it on the market change anything? - it's a studio flat, worth £30k and the one upstairs has been on the market for nearly 2 years - it won't sell - and I'm 50, a long way off retirement.

ic

Sounds like you need to be talking to Halifax about financial hardship and looking for a voluntary arrangement.  Talk to them sensibly about what you can realistically afford to pay each month.  Perhaps worth asking in either the Dealing with Debts or Debt-Free Wannabe forums?

Whats_your_forte

If you are 50, then nothing to worry about.

The lender will look to help and simply restructure the remaining part of the mortgage on as repayment basis to your retirement age if needed as part of their TCF policy. It also fits their standard criteria

Biggest piece of advice I can give is keep them in loop all the time. They only jump in with the jack boots on if they don't hear from the client. Keep them informed all the time as well as keeping a log of calls/names when you contact them

yksi

Universal Credit (if you apply) will give you a months' payment up front as an interest-free loan paid back in instalments over the course of a year - that would be a start.

StillShallow

Whats_your_forte said:

If you are 50, then nothing to worry about.

The lender will look to help and simply restructure the remaining part of the mortgage on as repayment basis to your retirement age if needed as part of their TCF policy. It also fits their standard criteria

There *is* no remaining mortgage - it ends in 2 weeks - I've spent all day on the phone to Halifax and they've said they're not prepared to offer me any extentions / loans / remortgages / whatever.

MovingForwards

You have an income, so what can be done to find a way of paying the remaining balance?

Some things to think about---
How much is your monthly mortgage payment?
Do you have any credit cards?
Have you applied for ANY credit card, regardless of the interest rate if it's a reasonable one?
Have you applied for a loan?
Can you increase the regularity you temp?
Are you registered with more than one agency?
Are you actively applying for jobs?
Are you claiming all the benefits you can? Whilst universal credit doesn't pay much, it's better than nothing during your short / missing weeks of work.

Some ways to save money---
What are your bills? 
Is your council tax spread over 12 months?
Is your water over 12 months?
Can you get rid of, or cut down on things (eg sky, internet, mobile)?
Do you have a TV licence when you don't need one?
Can you cut down on food shopping?

Provide us with information and we can say about possible options.