finding a new mortgage whilst getting dla and carers

allotment_owner

Hi.
We took out a low mortgage back in 2000 whilst self-employed. it was a self cert type. Since having mortgage, daughter has been diagnosed with a liver disease and is receiving higher rate DLA. As she needs night time care, we have found it dificult to make much money as self-employed due to her condition adn frquent hospitalisations, home from school, etc. I receive carers allowance. My husband does still work self employed but as our income is low, we also get WFTC/CTC.

Now we have had our mortgage for almost 7 years, it is fixed until 2011 with Northern Rock. no defaults, we manage to budget with the little we have. My concern is that Northern Rock may not invite mortgage renewal- I know we have until 2011 but this does concern me.

Husband is training to become an electrician as well, so we hope that we will get out of our low income situation in the future!

Basically, what are our chances of finding a new mortgage given that we are really on a low income? 3 and a half times our salary is not enough to get a loan (we owe about £55,000 of the mortgage now on a home worth about £120,000)

Any suggestions welcomed. My daughter is 9 yrs old and it is an incurable condition which affects her in many ways.

Thanks.

dmg24

Hi allotment owner,

Welcome to MSE.

No one can tell you what will be happening in the mortgages market in 2011. However, at the moment you would be unlikely to get a new deal and therefore stuck with the SVR.

Sorry I can't give better news x

Conor_3

Basically in the current market, there's no hope whatsoever. Even those with damned good income in fulltime employment are finding it hard to get a mortgage as basically, companies don't want to lend at the moment.

allotment_owner

Hi and thanks for the welcome. What is SVR?
Why really would it be a problem if we can pay the monthly mortgage fee. Mortgage company would not lose as our mortgage amount is less than half of the house value!
I guess another self cert would be needed.

dmg24

SVR = Standard variable rate i.e. the interest rate without any discounts.

I think you will be stuck even with self cert, they are not nearly as easy to get even compared to a year ago.

I can see your argument that you can afford the payments, but unfortunately you also represent a high risk.

Sorry x