Interest Only Mortgages for Pensioners

lav_2

Hello everyone

Before I get the razor blades out I thought I would try this forum for some help and/or advice.

This is our problem.

We have just found out that we are in arrears with our mortgage company. I know that sounds daft but its true.

We both came out of work 18 months ago and went on to Pension Credits Our mortgage company put in place a payment arrangement to pay only the interest, which the DWP pay part of. What we didn't realise was that at that time was that we could have converted to an interest only mortgage as our credit rating was ok.

Recently, on the mortgage company's advice we tried to change to an interest only mortgage but they have told us that they won't do this as we now have arrears and have bad credit rating!

We stand little chance of employment as we have been trying for the past 18 months to get work but I think its an age thing.

We have tried to shop elsewhere for an interest only mortgage but are finding it very difficult. Has anyone any advice or suggestions or shall I carry on with the razor blades.

Thanks

Lav

homer_j_3

Sorry to hear about this.

Who is the lender?

The usual advice for this is firstly to ask the lender for a budget planner so you can detail you income and outgoings. I would then complete this. If your lender cannot provide you one, simply create a document (on computer or by hand) which shows what income you have coming in and exactly where every penny goes.

I would then attach this with a copy of your bank statement which backs up this expenditure and income and put a nice letter explaining that you are unable to pay anything extra to them and would like them to capitalise the arrears for you and put you on interest only. This means that they just add the arrears to your balance and you are then starting on a clean slate as such.

Make it clear that you were not made aware at the time that there was an option to go interest only too or else you would have done this as it makes sense when you knew you couldnt afford the extra.

I would ask that they make all future contact in writing and not via phone.

Keep a copy of whatever you send and receive. If they respond saying that they are unable to accept your request then I would write back stating that you want to escalate this to a complaint as you are trying to make reasonable steps to put this right.

I would also, in addittion to this, visit the benefits board on this forum (under employment, jobseeking and benefits) and ask if anybody can tell you if you are receiving everything you are entitled to. There is a website (https://www.entitledto.co.uk) which may help you out.

I would also put you income and expenditure on the Debt Free Wannabe board and see if anybody can help you out in cutting back on what you spend.

The site has a mass of information and spending some time here will give you the power to ensure you know that you are giving yourself the best chance of getting through this.

With regards to age and employment - I know people like b&q are very favourable of elder applicants so maybe the jobseeking board could help too?

lav_2

Hi, The Halifax

homer_j_3

They are high street then so I would expect them to be less aggressive than a non high street lender.

I would try what I have said and see what happens. There may be others on here that can add to what I have said so keep checking on here.

lav_2

Hi,

Thanks for that I will do that now. We have had a terrible run around from them just going round and round in circles and not getting any where. Which department/person would best deal with this within the Halifax?

lav

homer_j_3

I would mark FAO collections or mortgage arrears dept.By putting in writing, you should hopefully get a written response. This may take a little longer than phone but it allows you to be more considered in your actions and them in theirs