Struggling but in a peculiar situation and really do not know what to do?

lottagelady

Apologies but this is a very long story ....
I bought my house with a mortgage from the Woolwich (now Barclays) in 2005, so have lived here for over 15 years. In 2005 I was in full time work and had a partner who also worked full time but who had no claim on the house. 
Sadly by 2010, my health took a dramatic nose dive, I became unable to work and had lost my partner so my income dropped substantially.
I did have some savings which went rapidly, and eventually I ended up with an IVA. In 2015 I received a windfall, most of which went on paying off the IVA  (criminal fees so avoid that avenue if you can!)
When I became 55 I became eligible to draw on my pension - it would have given me a monthly income of £69 per month so decided to draw on it and take £5k a year for 5 years, which has literally kept me afloat over the last few years. This has now ended and I am now up the said creek without a paddle. 
My Mortgage is due to end in 6 years and 8 months - there is £30K that should have been covered by an endowment, but as I couldn't afford to pay the premium, then that will be outstanding at the end of the term, and there is also a £29k Mortgage Current Account secured on the house (how that accrued is also a long story, no longer relevant) but 
that too also needs to be covered.  I have been trying to get some help from the Bank now since 2009, as I knew that this issue would eventually come to the fore, but they have always palmed me off - even the Financial Ombudsman became involved. I have been to Christians Against Poverty, Stepchange, National Debtline, National Mental Health and Money Advice Service. Shelter and Stepchange again - going round in circles!
Last month I finally got to the correct dept within Barclays, who have again asked me for an Income and Expenditure Form, and asked me to provide proof of my medical issues - (I could have done this years ago!)  so that my case can be put to a Specialist Panel. What I have suggested is that I sell my house, pay them back the £30k Mortgage Current Account, but in order to purchase anything in the area close to my small support network, I would need to port my current product including the bit that's not covered by an endowment policy, which I have asked them to add to the mortgage and substantially increase the term.

Even if they allow me to do this I will barely have enough to buy what I need which is a bungalow in a very expensive area - If they don't allow me to do it what on earth can I do then - any ideas??

As it is I don't put the heating on in Winter unless it is really bad, don't eat much, rarely go out, but my 2 dogs, who are my companions do cost me a fortune with insurances etc 

KxMx

Are you getting all you are entitled to in terms of disability benefits, council tax relief etc?

Maybe better to look for a ground floor garden flat, I know it's not ideal with dogs or what you want but it could be cheaper.

Is it realistic to maintain being a home owner on your income? If you sold and went into rented after repayment you would have a good financial cushion. Furthermore at your age you may be eligible for LA housing, it can be more readily available for over 60s than say a family needing a 3 bed house. 

Try posting on the DebtFree Wanabee board, the posters there are very skilled in helping to identify savings to be made. 

[Deleted User]

Would equity release be an answer(assuming there is enough equity?), with all the facts but no figures it's difficult to give advice.

poppy12345

Bungalows are very hard to find and when you do find one they tend to be very expensive because there's not many of them. I agree with the idea of a ground floor flat.

If your credit score is affected then you may find it extremely difficult to get another mortgage.

If you're not currently claiming any means tested benefits then if these are needed anytime in the future then your pension will affect the amount you're entitled to.

lottagelady

venison said:

Would equity release be an answer(assuming there is enough equity?), with all the facts but no figures it's difficult to give advice.

Been there twice - even the advisors say don't do it!! 

lottagelady

venison said:

Would equity release be an answer(assuming there is enough equity?), with all the facts but no figures it's difficult to give advice.

KxMx said:

Are you getting all you are entitled to in terms of disability benefits, council tax relief etc?

Maybe better to look for a ground floor garden flat, I know it's not ideal with dogs or what you want but it could be cheaper.

Is it realistic to maintain being a home owner on your income? If you sold and went into rented after repayment you would have a good financial cushion. Furthermore at your age you may be eligible for LA housing, it can be more readily available for over 60s than say a family needing a 3 bed house. 

Try posting on the DebtFree Wanabee board, the posters there are very skilled in helping to identify savings to be made. 

KxMx said:

Are you getting all you are entitled to in terms of disability benefits, council tax relief etc?

Maybe better to look for a ground floor garden flat, I know it's not ideal with dogs or what you want but it could be cheaper.

Is it realistic to maintain being a home owner on your income? If you sold and went into rented after repayment you would have a good financial cushion. Furthermore at your age you may be eligible for LA housing, it can be more readily available for over 60s than say a family needing a 3 bed house. 

Try posting on the DebtFree Wanabee board, the posters there are very skilled in helping to identify savings to be made. 

Hi all - thank you - yes I am claiming all I am entitled to - I am not yet 60 although a lot of these flats are for the over 55's - it has been my garden that has been the only thing during lockdown that has kept me alive, and I couldn't manage the dogs without one - when/if I move I will also lose my volunteer dog walker so that garden will be a must have.
If I sold then I would make myself homeless but with an awful lot of cash in the bank which will just whittle away until I have nothing, there is very little social housing in the area and they would put me miles away from my daughter, so it would have to be a private rent - I would lose my entitlement to benefit and have to pay in full for my carers until it had all gone. There is enough equity to purchase 'something' but not quite enough for a small bungalow, they are priced at a premium. If I bought a house I would need a downstairs wet room.
I am about to go into hospital when I will more than likely lose a kidney as I have cancer - a fact that was originally missed by my local hospital in February - it is showing on a CT Scan but wasn't reported, so just more crap to deal with - I am very close to giving in to be honest ....

KxMx

Sorry to hear of your troubles, that is an awful lot to deal with.

Do post on the debtfree section for advice, the posters there are experts and have helped many. 

I am registered on BorrowmyDoggy.com and have a very local match as I don't drive.

The owner is moving soon but I will still walk her dog, he is going to be brought to me rather than me going to her. 

I had braced myself to lose him, especially as his owner told me she gets contacted fairly regularly by other borrowers. 

Your volunteer may also want to carry on should you move  

lottagelady

KxMx said:

Sorry to hear of your troubles, that is an awful lot to deal with.

Do post on the debtfree section for advice, the posters there are experts and have helped many. 

I am registered on BorrowmyDoggy.com and have a very local match as I don't drive.

The owner is moving soon but I will still walk her dog, he is going to be brought to me rather than me going to her. 

I had braced myself to lose him, especially as his owner told me she gets contacted fairly regularly by other borrowers. 

Your volunteer may also want to carry on should you move  

Yes my walker doesn't drive either so I would bring the doggies over for him to walk too as he is very fond of them! Bless him - I literally cannot afford to register on BMD, it's about £50! But is a great idea!
I will post n the Debt free section, thank you!

poppy12345

Living in a flat doesn't mean you'll loose a garden because some flats have their own garden. I lived in a ground floor flat which had a 20 foot garden, which was mine.

Savvy_Sue

I agree it would be worth investigating what's available on the social housing front. Some housing associations specialise in the 50+ market. There's a regular turnover in properties because the tenants move on more frequently than within the regular housing stock. 

My friend lives in a Methodist Homes property. There are some rented flats within the complex. There are lots of cats too, not sure about dogs but at least not 'no pets'. The garden is communal but residents can help and enjoy it freely.