Struggling and need some advice if anyone can think of anything?

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, preferably until I die.

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, but PetPlan are the only company my vet will allow me not to pay and they will claim direct which is necessary for me as there is nothing spare.

I have looked into Equity Release twice over the last 5 years, but even the advisors who are trying to sell the product say 'don't do it!'

I have Carers through a Direct Payment and the Council want to me to contribute to my care, but I just do not have the money to give to them for it, due to being mislead by one of their assessors who said that I didn't have to pay anything unless I had £23,500 in savings, I wish I did, but I spent my pension money as though it was my savings as it has been keeping me afloat. It has all gone so  do not have any to give.

I am claiming all I am entitled to - I am not yet 60 and someone suggested a flat - 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.

Someone else suggested renting - 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, or the wherewithal to put one in or purchase a Stannah.

I am about to go into hospital when I will more than likely lose a kidney as I now also 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, my eldest daughter is suicidal, so just more crap to deal with - I am very close to giving in as well to be honest ....

TheAble

So how much money do you need to find in the next 6 years 8 months in order to satisfy the mortgage?

lottagelady

TheAble said:

So how much money do you need to find in the next 6 years 8 months in order to satisfy the mortgage?

£60K is not covered by any policy etc

monetxchange

I'm sorry to hear of all the ups and downs you have. I think the reality is you're going to have to compromise somewhere, at least on one of the things. You don't want to rent, get council accommodation, flats are a no, equity release is out, pension has run out, no way of getting the money together. That's not really much anyone on here can say that will enable you to magic £60k out of the air. It sounds like the majority of this debt situation has come about due to an affordable living situation in terms of the mortgage, and I can't personally see the sense in you continuing to do everything to hold on to what is essentially a drain on all your resources.

I think the best thing to do is focus on your least worst option. How would your carer entitlement suddenly disappear if you moved? Is renting somewhere a little bigger with a garden for the dogs etc not a better option? I can't see the logic in trying to mire yourself in another mortgage right now on a flat you don't want. If the money gets spent up, it gets spent up. That's what it's there for - to look after you in your retirement, not to allow you to struggle so you can leave inheritance or whatever to people. What would be your best outcome here personally?

lottagelady

Is renting somewhere a little bigger with a garden for the dogs etc not a better option? I can't see the logic in trying to mire yourself in another mortgage right now on a flat you don't want. If the money gets spent up, it gets spent up. That's what it's there for - to look after you in your retirement, not to allow you to struggle so you can leave inheritance or whatever to people. What would be your best outcome here personally?

Good point well made - I have always thought that renting was a waste of money really, especially when private renting around here would cost me more than 2.5 times the cost of my mortgage, so the money would go pretty quickly, then I may well find myself with a potential 'deprivation of assets' issue? Then when the money did run out would I then have to move again? I can't bear the thought of moving this time as after 22 lots of surgery I am now physically disabled, and to be honest I have absolutely no idea how I would even manage it anyway? I am scared for my future really ....

TheAble

What's your total income? No way of getting that 60k together in the timeframe?

TheAble

One possible idea is to ask the bank if you can go interest only on that £60k.

MidsHollie

Curveball idea, if you have a spare room available. Could you seek someone who would be willing to rent a spare room and provide your care requirements, in return for reduced rent? That way you would have a little increase in your income and would not have to spend cash on care.

[Deleted User]

TheAble said:

One possible idea is to ask the bank if you can go interest only on that £60k.

And then what? Even if the mortgage lender agreed to this, which I doubt, the capital will eventually need to be repaid. 

[Deleted User]

lottagelady said:

Good point well made - I have always thought that renting was a waste of money really, especially when private renting around here would cost me more than 2.5 times the cost of my mortgage, so the money would go pretty quickly, then I may well find myself with a potential 'deprivation of assets' issue? Then when the money did run out would I then have to move again? I can't bear the thought of moving this time as after 22 lots of surgery I am now physically disabled, and to be honest I have absolutely no idea how I would even manage it anyway? I am scared for my future really ....

I don’t think paying for the roof over your head is a waste of money nor would it be considered deprivation of assets. If/when the money runs out you could apply for help with paying your rent. 

Have you approached the council or any local housing associations about available housing stock that would suit you needs? 

I know you have a lot on your plate and that moving is stressful. If you can’t afford to pay the mortgage then sooner or later you will be forced to move anyway so better to do it on your own terms. 

TheAble

Lover_of_Lycra said:

TheAble said:

One possible idea is to ask the bank if you can go interest only on that £60k.

And then what? Even if the mortgage lender agreed to this, which I doubt, the capital will eventually need to be repaid. 

Upon death the house is sold and the bank takes back their 60k out of the proceeds.