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Mortgage Advice Needed - single parent on benefits

I'm posting this for a friend who needs some advice re a mortgage.

She's recently through a divorce where she 'inherited' the family home, which is in a bad state of repair, and too big/expensive to keep. She's currently in receipt of benefits and gets help with her mortgage interest from the DSS. She would like to sell her house and buy something smaller/easier to maintain.

Value of property is approx £150k with £70k mortgage outstanding. Remaining £80k will not be enough to purchase something. She will need an additional £20-£40k in order to buy a small 3 bed ex-council house in her area. Her current mortgage lender will not permit her to transport her existing mortgage. She has no arrears, or adverse credit that she knows of.

Can anyone tell me..........are there any mortgage lenders out there who will lend to someone on benefits, especially when looking at such a low LTV amount?

Thanks.

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