It's not looking good, do you agree?

Beatle_Ray

Hello, thanks for reading this and replying if you do so, all of it is appreciated, to start with I run my own business and to say it has not been a good time this past year is an understatement, my income has dropped to about £500 a month which is not enough to pay for the mortgage and other household bills, thankfully we are not holding any other debt other than the mortgage, this currently stands at £105K owing, the property is worth £400K, i had it valued back in November 2020, I have just finished a mortgage holiday in Feb, the payment is the first day of the month, I contacted the Halifax last week since when I arranged the payment holiday they said it was possible I could go onto a pension style mortgage but extending the term out for another 22 years until I'm 80 however they would only do this based on a projection from the private pension provider, the sum due from the state pension and also three recent wage slips, only the state pension would hold up under investigate, so that rule that option out, now what I didn't know was that if i did sell the house then the mortgage gets paid off and if a mortgage is required for the next property then that is viewed as a fresh application which I'm assuming they will need three wage slips, to get a property of any value for what we need would be about £325K, so do I tough it out and hope the business picks up over the next 10 months, i can keep taking the cash out of the pension to pay for the lack of income or move now and keep the money in the pension, i probably did not describe this too well but it's keeping me awake at night and starting to dominate my thoughts,

MWT

How large is your pension at the moment?

It doesn't sound like you are in a position to pass affordability on a new mortgage at the moment, nor would be able to sustain your current mortgage even if you could get it extended and converted to interest only.

Going mortgage free may be within your reach though if you can downsize sufficiently.

Only you know if your business is going to return to its former size, but 'hope' isn't a great foundation for a plan, may be time to have a chat with Step Change or similar just to get a different perspective on where you are right now before you make any major decisions...

MovingForwards

Read all your other threads about this. 
What income does your wife have and is that from employed by another company or your business?

Carl2510

Or you could sell and buy a cheaper house in full no mortgage and not have to worry

Beatle_Ray

thanks for the replies, i'll take a look at Step Change, i agree with everything said here, i just need to get my head round things, the business is good one day and bad the next  but the volumes are not there currently to ensure i have earnt enough each month to pay the bills