Remortgage or ?

littlelady

Need some advice concerning my mortgage ,i am with the halifax and i am receiving benefits ,i opproached the halifax to borrow some money on my house for improvements etc,they declined because of me being on benefits even though there is over 150,000 equity in the property ,the dhss pay the interest and i make up the difference every month without fail.
I only have about 8 years left on my mortgage ,is there anything i could do to release some money?could i move my mortgage to a BS that would look at my circumstances and consider this option?Any advice please?thanks

UK007BullDog

You are on benefits. The DHSS are paying your mortgage and you want more? I don't think so and the lenders think the same.

If with your benefits you were able to pay the full interest or say the whole mortgage and you still had enough income to pay for more then they might consider it. But because you don't or can't they will all say no.

littlelady

Bulldog the dhss pay a contribution i make up the difference which is a lot more than they pay and you said i want more ? dont understand what you mean?i have asked if they can release some of MY equity in the house ,i am a single parents with 3 children ,i have done well to keep a roof over our heads and pay the bills and pay towards my mortgage without child support which cannot get.
I bet you wish you had that much equity:rotfl:

Tiddler_2

I doubt if you will find any other lender that would take on your mortgage balance as it is, never mind increase it, because of the fact that most lenders do not take Income Support into account when calculating what you can afford to borrow.

Mortgages these days are based on you being able to afford the payments, not the equity or collateral you can provide.

There is one way you can release the equity in the property - but you won't like the option! Sell the property.

silvercar

If anyone did offer you a higher mortgage, enabling you to release some of your equity. how would you manage the repayments?

Assuming the DHSS would not increase the interest payments, how would you manage to afford to pay the interest on this equity released and repay the capital borrowed?

UK007BullDog

I have lots of equity in my property, but we are not here to discuss MY ability to pay my mortgage 100% on my own. But YOUR ability not to.

So why don't you post here all your income, your outgoings, any other debts like CC, loans etc. Your outstanding mortgage amount, your "equity" or property value (realistic please in a falling market) and then we can tell you what you MIGHT be able to borrow and the costs involved. Could you also give your age and the kids ages who still live with you please so that we can give a more realistic account.

Child benefit is not an income just to let you know.

Lenders only care about your income and if you can support a mortgage. They don't care how much equity you have. You could have a million pound house they would not lend if you don't have enough income to support a mortgage, your living costs and your kids.

UK007BullDog

You want to release equity i.e. borrow more, your monthly payments will go up. Or will the DHSS pay for it?

beecher

littlelady wrote: »

Bulldog the dhss pay a contribution i make up the difference which is a lot more than they pay and you said i want more ? dont understand what you mean?i have asked if they can release some of MY equity in the house ,i am a single parents with 3 children ,i have done well to keep a roof over our heads and pay the bills and pay towards my mortgage without child support which cannot get.
I bet you wish you had that much equity:rotfl:

The equity is only 'real' money if you sell up and release it. Until then it isn't 'your' money so all you're doing is borrowing money - can't imagine any bank giving you much when you're on benefits, if any. How much money are you wanting to borrow? Wouldn't it be a better option to downsize since you've got so much equity?