End of term mortgage

Julieraff1976

Hi desperately need advice,   My partners mortgage has hit end of term the whole 25 years,  he has 3 weeks to try come up with the remaining 40k or sell the property which is worth £250k, he is under 55 so equity release a no go and we have been trying for weeks to get help, when he had the mortgage he was working and married,  now divorced said ex is deceased he is on disability benefits :  Pip & ESA  which has been awarded for life,, his credit score it good yet we have still been refused,  we have called so many companies to no avail is there anybody who can help us as we only want to remortgage for the 40k so we do not lose the house as its been adapted for his disability also,  any advice will be grateful

K_S

@julieraff1976 If you have indefinite PIP and ESA income, the loan size is only 40k, background debt is minimal and credit history is ok, you may have options for a like for like remortgage on a standard capital repayment mortgage. What options (if any) will depend on the specifics.

If you haven't already, I would recommend speaking to an experienced whole of market broker to get a realistic idea of your options. If you've already spoken to multiple ones (in this case the volume brokers might not be ideal as they are unlikely to have the time to dig into potential options) and they haven't been able to help, then you may be out of luck. If you could give an idea of what the roadblocks are, that might be helpful.

Julieraff1976 said:

Hi desperately need advice,   My partners mortgage has hit end of term the whole 25 years,  he has 3 weeks to try come up with the remaining 40k or sell the property which is worth £250k, he is under 55 so equity release a no go and we have been trying for weeks to get help, when he had the mortgage he was working and married,  now divorced said ex is deceased he is on disability benefits :  Pip & ESA  which has been awarded for life,, his credit score it good yet we have still been refused,  we have called so many companies to no avail is there anybody who can help us as we only want to remortgage for the 40k so we do not lose the house as its been adapted for his disability also,  any advice will be grateful

Julieraff1976

@K_S thank you for your reply, 

 He is has indefinite PIP and ESA and is on the highest rate available,  He has no background debt only 2 credit cards both under £500 credit limit,  mobile phone and that is about it other than normal bills, 

We have called step change for help, numerous company's who specialise in benefit mortgages but still keep getting declined and all keep saying because of income,  bad credit mortgages,   even though out of 4 credit score agencies 3 have a score of over 820 and one over 500 which is Experian and that's the one that is affecting our chances because its the main one people use.

 so the more we try with brokers,  mortgage advice bureaus, credit bureaus and the like we just hitting brick walls constantly and now dont know what to do,  its affecting him mentally and physically its awful and it seems the only roadblock it his income yet most state indefinite PIP will be accepted clearly not

K_S

@julieraff1976 I'm really sorry to hear that. I suspect it's the combination of benefits-only, income levels and adverse credit history (the scores itself don't really matter, it's what's in the reports that counts) that's perhaps is stopping the brokers from being place to place it with a lender.

I assume you've already spoken to the current lender to see if there's any way they can extend the term? Even a couple of years might help improve the credit history and open up some options.

Julieraff1976 said:

@K_S thank you for your reply, 

 He is has indefinite PIP and ESA and is on the highest rate available,  He has no background debt only 2 credit cards both under £500 credit limit,  mobile phone and that is about it other than normal bills, 

We have called step change for help, numerous company's who specialise in benefit mortgages but still keep getting declined and all keep saying because of income,  bad credit mortgages,   even though out of 4 credit score agencies 3 have a score of over 820 and one over 500 which is Experian and that's the one that is affecting our chances because its the main one people use.

 so the more we try with brokers,  mortgage advice bureaus, credit bureaus and the like we just hitting brick walls constantly and now dont know what to do,  its affecting him mentally and physically its awful and it seems the only roadblock it his income yet most state indefinite PIP will be accepted clearly not

Julieraff1976

@k_S the current lenders are not interested at all,  we have given them a breakdown of what we can afford ( which is more than we paying now,  plus have been paying extra the last 7 years)  and they still refuse to help even for a couple years till we can find something more solid.

We have checked his credit report there are no ccj's at all. There was one default for pennies which he cleared off as soon as they said it could be that affecting it and still no change.

We have exhausted every avenue possible and have done everything asked of us for us to improve our chances yet still no luck.

I just thought id try on here in case someone had been in the same situation and was lucky enough to get a happy ending that might help us.

Thank you for your help really appreciate it  

K_S

@Julieraff1976 I'm assuming this has been explored but might as well ask.

Do you have any income at all that can be used for affordability to go on the mortgage? Either both on the mortgage and deeds or just on the mortgage.

And given the low LTV, have the brokers looked at lenders that offer I/O products, consider downsizing as a repayment vehicle and will calculate affordability based on the interest-only payment?

Julieraff1976

@K_S Im currently on sick with anxiety and depression and struggle leaving the house,   so i have had to leave my job which was a big factor in my illness and i am currently on Universal credits which can not be taken into account and waiting on a decision for PIP myself but could be another 5 months before i hear anything which will be too late to help out.

I know he has told them he is willing to accept anything at all they can offer at the moment just so we can keep the property which he has had since 2016.

its not a huge property only 2 bed cottage,  in premium location and we would never be able to afford another in this area as the prices have soared.

The original mortgage was an I/O with an endowment which we only found out when his ex died and was removed from the mortgage ( she was still on but he had been awarded the house and santander refused to remover her till she had died )  once we had her removed and enquired about any death benefits it was then we found out the endowment had been cancelled by her years before as she used to deal with the payments.

so as for downsizing as a repayment vehicle i dont think it will make a difference.

smipsy

No one said you have to buy a similar property in the same area? If you are forced to sale, then you will be looking to buy in the area that you can afford, not in the area where you are now. You said it yourself, you can't afford your area

Julieraff1976

@smipsy no one said you had to comment on my post

K_S

Julieraff1976 said:

its not a huge property only 2 bed cottage,  in premium location and we would never be able to afford another in this area as the prices have soared.

The original mortgage was an I/O with an endowment which we only found out when his ex died and was removed from the mortgage ( she was still on but he had been awarded the house and santander refused to remover her till she had died )  once we had her removed and enquired about any death benefits it was then we found out the endowment had been cancelled by her years before as she used to deal with the payments.

so as for downsizing as a repayment vehicle i dont think it will make a difference.

@julieraff1976 With respect to an I/O repayment strategy, downsizing doesn't necessarily mean a smaller house, just a less expensive one. For example if the plan is to downsize from a 250k house to a 150k house at the end of the term, there's sufficient equity in the property and the plan is plausible, then there are lenders that will consider an I/O mortgage with affordability based on the monthly interest-only payment.

Of course, you'll still have other boxes that you need to tick to qualify. But again, since you've spoken to multiple brokers I'm pretty sure they will have explored this route.