I don't know where to post this but things are really serious 25 February at 11:00AM edited 27 February at 11:34AM in Debt-free wannabe 13 replies 2.7K views

littleivy

In November 2022 I had a biopsy and in December i was diagnosed with womb cancer stage1a,I've a total hysterectomy in Jan , my husband is self employed and I have serious anxiety issues (currently have a claim in for PIP as advised and helped by MacMillan). The only income we have right now is working tax credits as the business suffered during lockdown and hasn't picked up .
We haven't paid the mortgage since November , my husband contacted them and they asked for an income and expenditure which my husband filled in and returned, the mortgage company never even acknowledged they had received it back . My husband was in contact with them and they knew of my health issues .
So we were receiving letters saying what the arrears were and that they were keen to help us . We have three months arrears from back when our business was closed as a none essential business (we received the grants and we paid our business rent and other bills ) Back to the mortgage, we now have over £4000 in arrears , in January we got a letter saying our mortgage account would be with 'Mars Capital) from 18 Feb 2023, in the meantime we have received two letters from our original mortgage company stating the arrears and they are keen to help . 
My husband is returning to work to try and build the business up on Tuesday next week, he rang the mortgage company and they never had any record of our account as it has been passed to 'Mars' , they found him by his name and the address. They said we would be receiving a welcome pack from Mars Capital soon .

Extreme anxiety now over this new company , as I've read bad reports about them , such as adding charges and upping interest and going for repossession . Now isn't the time for this added anxiety on top of my recent health issues ,I will be referred to living with and beyond when I get my first follow up appointment soon . I also know the anxiety of waiting for PIP and it takes months , so cannot rely on that , but MacMillan said they would take it to tribunal if needs.

Sorry for the long winded post I wanted to paint the picture of our circumstances .

If anyone knows any answers to my questions I would be so grateful .

1) Does this company who bought my mortgage account have to abide by the mortgage rule of conduct , can they go straight for repossession because of the arrears ?

2) If the business doesn't pick up enough to make money to pay bills and my husband has to sign onto Universal Credit as suggested by MacMillan and put a claim in for Support for mortgage interest (which takes 39 weeks before they start paying ) would the mortgage company start repossession proceedings during the waiting time for SMI or would they be expected to wait until payment starts ?

3)Universal credit is £525 for a couple and our mortgage payment has gone up to £700 so SMI would be £40.59 a week as MacMillan did a calculation for us to look at our options ,it would be impossible to make up the difference , would they go for repossession, or are they expected to follow rules to ensure we don't become homeless .

Thank you 

Bonniepurple

I don’t really have any suggestions, but I don’t want to read and run.  Is it likely that the business will pick up - and quickly, or has the demand gone?  If the latter, could your husband get even a part time job, something to bring in some money?  Bear in mind that if you do go onto Universal Credit then the self employed minimum income floor will apply.

Mortgage- keep talking to the bank.  Show that you are making efforts to pay it.  It’s a priority debt so pay at least part of that first.  Credit cards and loans - don’t worry about.  Have you got Council Tax Support?

I’m sure  others will have more advice, but that’s all I can think of.

poppy12345

Even if you did claim UC then for SMI you will need to have 9 consecutive months with zero earnings. Even then it's just a loan which will need to be repaid back sometime in the future. https://www.citizensadvice.org.uk/benefits/support-for-mortgage-interest-smi/support-for-mortgage-interest-smi/deciding-if-you-should-apply-for-smi/

Have you worked at all in tax years 2020/21 and 2021/22? If you have and you have the correct NI contributions you can claim New style ESA. It's not means tested so your partner working will not affect the amount you're entitled to. It pays £77/week for the first 13 weeks and then increases to £117.60/week after that. If you're going through treatment for cancer by way of chemo and/or radio therapy and have had treatment in the past 6 months then you'll qualify for the Support Group. https://www.gov.uk/guidance/new-style-employment-and-support-allowance-detailed-guide

If the business isn't doing well can your partner look for alternative paid work?

Can't offer any advice on your current mortgage though, sorry. It maybe better to post again over on the Mortgage or housing section of the forum, you may get more advice over there.

Spoonie_Turtle

No idea about the mortgage, sorry, but SMI is due to change in "Spring 2023" (wording in the November 2022 budget - so presumably April?) to a 3-month wait and abolishing the rule of needing to have zero earnings.  Of course that still leaves you with potentially 4+ months of worry.

Are you receiving, recovering from, or likely to receive (within the next 6 months) chemotherapy or radiotherapy for the cancer?  If so you could be assessed as having LCWRA for UC (the equivalent of the Support Group of ESA) which would increase your entitlement and give you a work allowance on your claim (an amount of earnings ignored before they start to make deductions).

If not, you should still have a work capability assessment for your anxiety and it is possible to be assessed as having LCWRA.  If you're assessed as having LCW instead it would give no extra money but still the work allowance.  There may still be backlogs for assessments though so it could take a while.

The Minimum Income Floor mentioned in the first reply doesn't apply until 12 months after you claim.  If you are awarded PIP and your husband can claim the carer element then he would not have any work requirements and would not have the MIF applied.  (He could still work, but would have no minimum requirements nor have to attend appointments or look for work/try to increase his self-employed work.)

I echo poppy's advice that the mortgage questions might be better off on a different section of the forum where there are more posters with relevant knowledge.

littleivy

Spoonie_Turtle said:

No idea about the mortgage, sorry, but SMI is due to change in "Spring 2023" (wording in the November 2022 budget - so presumably April?) to a 3-month wait and abolishing the rule of needing to have zero earnings.  Of course that still leaves you with potentially 4+ months of worry.

Are you receiving, recovering from, or likely to receive (within the next 6 months) chemotherapy or radiotherapy for the cancer?  If so you could be assessed as having LCWRA for UC (the equivalent of the Support Group of ESA) which would increase your entitlement and give you a work allowance on your claim (an amount of earnings ignored before they start to make deductions).

If not, you should still have a work capability assessment for your anxiety and it is possible to be assessed as having LCWRA.  If you're assessed as having LCW instead it would give no extra money but still the work allowance.  There may still be backlogs for assessments though so it could take a while.

The Minimum Income Floor mentioned in the first reply doesn't apply until 12 months after you claim.  If you are awarded PIP and your husband can claim the carer element then he would not have any work requirements and would not have the MIF applied.  (He could still work, but would have no minimum requirements nor have to attend appointments or look for work/try to increase his self-employed work.)

I echo poppy's advice that the mortgage questions might be better off on a different section of the forum where there are more posters with relevant knowledge.

I tried to post yesterday but it said I haven't been on here long enough ,I was carer for my mum for four years and I think I did get NI during that time , I stopped being carer back in May of 2021 , would that entitle me to the esa ?

Spoonie_Turtle

littleivy said:

Spoonie_Turtle said:

No idea about the mortgage, sorry, but SMI is due to change in "Spring 2023" (wording in the November 2022 budget - so presumably April?) to a 3-month wait and abolishing the rule of needing to have zero earnings.  Of course that still leaves you with potentially 4+ months of worry.

Are you receiving, recovering from, or likely to receive (within the next 6 months) chemotherapy or radiotherapy for the cancer?  If so you could be assessed as having LCWRA for UC (the equivalent of the Support Group of ESA) which would increase your entitlement and give you a work allowance on your claim (an amount of earnings ignored before they start to make deductions).

If not, you should still have a work capability assessment for your anxiety and it is possible to be assessed as having LCWRA.  If you're assessed as having LCW instead it would give no extra money but still the work allowance.  There may still be backlogs for assessments though so it could take a while.

The Minimum Income Floor mentioned in the first reply doesn't apply until 12 months after you claim.  If you are awarded PIP and your husband can claim the carer element then he would not have any work requirements and would not have the MIF applied.  (He could still work, but would have no minimum requirements nor have to attend appointments or look for work/try to increase his self-employed work.)

I echo poppy's advice that the mortgage questions might be better off on a different section of the forum where there are more posters with relevant knowledge.

I tried to post yesterday but it said I haven't been on here long enough ,I was carer for my mum for four years and I think I did get NI during that time , I stopped being carer back in May of 2021 , would that entitle me to the esa ?

I'm sorry, I don't know for certain. 

Have you ever worked and earned enough to be credited with National Insurance contributions? 

For ESA, NI credits count but they also need 26 weeks of credits/contributions from earnings.  As a carer they can look back at your NI record to count credits/contributions from earnings in any previous tax year.  However I don't 100% know which is the most recent tax year they require, whether caring until May 2021 is recent enough … @poppy12345 do you know?

poppy12345

I'm not 100% certain and for fear of giving incorrect information i'm going to pass on this one. Hopefully someone else will know for sure.

I do know that the answer to this question is important.

Spoonie_Turtle said:

Have you ever worked and earned enough to be credited with National Insurance contributions? 

littleivy

poppy12345 said:

I'm not 100% certain and for fear of giving incorrect information i'm going to pass on this one. Hopefully someone else will know for sure.

I do know that the answer to this question is important.

Spoonie_Turtle said:

Have you ever worked and earned enough to be credited with National Insurance contributions? 

i haven't worked and paid NIC for years as I stopped when I had the children , but then got ill with anxiety and panic so never went back to work.

I think I need to speak to an adviser about this, but even with PIP they don't like awarding it and that can take up to 10 months from start to tribunal should it get to that . In the meantime the new mortgage company have written with a welcome pack , we just also got a final statement from our previous mortgage company . They seem to have added the arrears to the total balance and on an interest only basis and we have 13.8 years left on it so ours is a really high interest as we were self employed when we too out the mortgage and the rate is now 8.15% making the monthly payment on interest only would be £732 a month. Hubby is back at work Thursday so if the business does well we can pay this and pay other bills too , just need customers back . Fingers crossed . 

enthusiasticsaver

They categorically cannot go straight for repossession and with your current state of health no court would order a repossession order. Most lenders do tend to hold off now and are much more sympathetic so I would put in writing that you have cancer and your husband is self employed and you are trying to sort out your income situation. I don't know Mars Capital though and undoubtedly costs will be added. 

I am assuming you do not have critical illness insurance?

Unfortunately you do need to persist with the benefits application process which is cumbersome I  know but given you have no other income I don't see you have a choice.  

Is there any equity in the house?  Is selling and renting privately an option.  Not ideal I know but given the situation your options are limited. 

TheAble

Could your husband do an extra job maybe?

littleivy

enthusiasticsaver said:

They categorically cannot go straight for repossession and with your current state of health no court would order a repossession order. Most lenders do tend to hold off now and are much more sympathetic so I would put in writing that you have cancer and your husband is self employed and you are trying to sort out your income situation. I don't know Mars Capital though and undoubtedly costs will be added. 

I am assuming you do not have critical illness insurance?

Unfortunately you do need to persist with the benefits application process which is cumbersome I  know but given you have no other income I don't see you have a choice.  

Is there any equity in the house?  Is selling and renting privately an option.  Not ideal I know but given the situation your options are limited. 

Thank you , I was wondering that because of the cancer diagnosis the court would not sign a repossession order. My husband is looking for more business and when he goes back Thursday he is going to ask for reduced rent , he already does have some old customers coming back. Ideally we should be asking the new mortgage company if we can pay even £400 a month which would ease the situation . We will wait for them to write again as they said they would be sending a statement etc .