Advice on mortgage please.

smokybabe

Hi.

I am looking for some advice re - my mortgage with Northern Rock.

My husband and I took out a mortgage with NR on 31/01/06 at 4.99% fixed for 5 years. This was on an amount of 103.401K. We paid 18K deposit on our property. One of the clauses involved the fact that my husband had half shares in a block of flats (we were told that they were in the process of being sold) from which we were expecting to get 60-80K. The deal was that we would not be able to repay any more than 10% each year for the first 5 years and then could repay what we wanted.

OH had invested 15K to help his mate out a couple of years after the flats were bought and at the time rather than take half the rent OH has a legal document stating that he was entitled to half the share of the profits once the building was sold.

6 months ago we found out that the other partner in the flats had had the property sold in 2003 and according to him he had gone belly up and the bank had sold it. He throughout neglected to tell my OH and we would never have gone down this route if we had known. It has become increasingly clear that some sort of deception has taken place with this and I am seeing the solicitors on Tuesday to follow that one through.

My OH passed away following complications of surgery on the 17th of last month and our financial adviser was unable to get us any life assurance to cover him when we took out the mortgage (heart condition) and this has now left me on a part time wage (3 kids - 3 and a half, 6 and a half and 8 years old). I am 44 in fairly good health but obviously this can not be guaranteed for the next 23 years. The current mortgage repayments are £587.26 per month, God alone knows what they will be in another 3 years.

I would like some practical advice on what my options here are please, we have never missed any payments, I have no savings as OH was in and out of hospital last year and on IB and my gut feeling is that NR will probably pull the plug.

TBH I would just like your thoughts before I see the financial adviser next week but I guess I know really what it's likely to be.

Thanks in advance.

Smoky.

smokybabe

Anyone got any thoughts or advice please.

Thank you.

Smoky.

homer_j_3

I am sorry that you have not had any responses, I am not sure what I can say to answer your queries.

Your solicitor will probably give your contract on the block of flats a review and no doubt tell you that the chances of getting your money back are slim or going to be costly and if this person has no money, difficult also. Clearly, you should see the solicitor and at least clarify what rights you have.

Re the mortgage - What income do you get on a monthly basis? Have you checked that you are getting everything that you are entitled to? Have a post on the benefits board for advice on this.

If the mortgage is fixed for another 3 years then that is positive in the fact that you have controlled payments. I would not get myself further in debt and I would maybe prepare to sell for the end of 3 years if it looks like the cost at that point is unaffordable.

Clearly, its hard to comment on your situation as there is a lot of complexity to your situation and I can only hope that over the next week or so, you are able to bring some clarity to where you stand with things.

dimbo61

sorry to here that your OH has passed away
like homer_j has said speak to a solictor about the flats and the legal douments he had .
right now you have a home which you put a good deposit on and you have
kept up with the repayments, and its on a very good rate which is fixed for
another 3 years.
if you work more than 16 hours a week and earn less than £16,000 a year
then you can get working tax credit, child tax credit, child benefit,
you will only pay 75% council tax and may get council tax credit !!!
as you have 3 kids under 19 you can also apply for WATERSURE which
limits your water bill to £335 a year.
check if your other half had any pension, insurance , widow,s benefits or
death in service benefit.there is also help with childcare costs.
use all the money saving tips on this website. I took the kids to quarry bank
mill for free using walkers crisps BRIT TRIP deals.
ask the solictor if you have to inform Northern Rock and just work at paying
the mortgage, council tax, gas/elec etc GOOD LUCK