Struggling to pay mortgage

saundyc

Hi I'm currently going through a divorce. We own 2 houses, both with mortgages, I'm in 1 with my young children and he's in the other house. He had been paying the mortgages up until October then we got the mortgage charter for 6 months interest only until March 2024. He will be redundant at the end of April and no job lined. The house he is in has came to the end of its 5 year fixed deal end of March and the amount has risen alot from £483 to £883 monthly. I'm pushing for it to be sold asap, awaiting his agreement as we don't communicate. The house I'm in is back to it's original cost £508 monthly on 1.77% deal, 13 years left. I'm a low earner and on benefits and will be really struggling to pay this monthly. Our mortgages are both with Natwest and they have refused Deferred payments and interest only as they only took into account my wage and then my expenditure which includes the cost of the mortgage for both houses.

I have rang today to try to extend my mortgage term of the house I'm living in to lower the monthly payments and I'm awaiting a decision. If they say no, what other options do I have? What happens if I miss a mortgage payment or I can't pay the full amount each month. Natwest told me that after 2 missed payments that they would start repossession and obviously I don't want it to come to that. Any advice would be greatly appreciated.

Brie

who actually owns the houses?  If you both own both houses then you will both need to be paying both mortgages.  But if you are able to keep managing the house you are in and let the other be repossessed then that might free up the money you both need.  Is it something you can suggest to the bank?

saundyc

We own both houses but the house I'm in I bought with my mum when I was 18. His name was added to the house when we remortgaged the house. He won't have a job to pay the mortgage on the house he's in and my solicitor indicated that it will be very likely to be sold through the divorce. He is also in debt with credit union etc so it's unlikely that he'll get a mortgage. I would rather get the house sold than repossessed as there's alot of equity in it £70k and the bank is aware that I want to sell but because it's not up for sale they wouldn't offer any options.

fatbelly

It's very unlikely Nat West will do very much apart from letter writing after two missed payments. Do keep them updated though.

How long have you been on UC? 

Yours may be a case where SMI would work

https://www.gov.uk/support-for-mortgage-interest

saundyc

They told me on the phone that they would start repossession after 2 missed payments. I'm on UC about a year and a half. I'm not comfortable with the SMI as they would have a hold over the house but I'll check out the link, thank you 

gwynlas

If he is out of work could he take over child minding duties so that you could seek a better salary? Also whilst waiting for the second house to go through marketing and sale could he take in a lodger through rent a room which would assist with bills.

saundyc

I'm in a permanent post so I wouldn't be looking for a new job as it's secure. He was on supervised visits until a few weeks ago but I've had to get a non molestation order against him so he won't be having the children until it's agreed through court. We don't communicate only via his parents