Re Mortgaging Whilst On Income Support,advice Needed????

kezzel

Hi,i Really Need Some Advice Urgently So If Anyone Has Experienced The Following Or Has Any Information Regarding My Situation Pls Write To Me,
I Am On Income Suport And A Single Parent With A Mortgage In Which I Get Help Paying With From The Social.
My Mortgage Fixed Rate Ineterest Only Is About To End And Will Rise Up To Over A Thousand Pound Which I Really Cannot Meet,so Therefor I Need To Re Mortgage To Get A Better Rate,how Ever Because I Am Not Earning And Am Claiming Benefits This Is Going To Be Very Hard,and I Do Not Know Where To Turn,my Current Mortgage Company Cannot Offer Me Any Additional Help Or Other Rates And The Social Will Not Pay Any More Towards My Mortgage,so I Am Now Worried That I Will Loose My Home That I Have Built Up On My Own,as U Can Imagine This Is Very Upsetting,so Please If U Know Any Mortgage Lenders That Spaecialise In These Sort Of Situations I Would Be Most Grateful If U Could Let Me Know Many Thanks!!!

MarkyMarkD

Welcome to MSE.

It's very hard to read posts typed with too many capital letters, so please make sure that your future posts are typed normally with capitals just at the start of each sentence!

I can't see that you are going to get a good deal from any other lender, if you don't have an adequate income to cover your mortgage. £1,000 of mortgage per month is a huge amount even for people who are working.

Why will your existing lender not allow you to switch products? Most lenders will, and they don't check your income or anything else.

Mr_helpful

About your only legal hope is to get a new loyalty product from your existing lender.

beecher

I think you've got an unaffordable house - £1000 interest only is unbelievably high - someone on average wage would only be left with about £400/month if they had that sort of mortgage. Your mortgage must be over £150,000 which is pretty mindblowing for someone on benefits. Sorry - I realise that isn't what you want to hear.

Gloster_Advise

Hi Kezzel,

Who is your current lender? when you took the mortgage out was the mortgage in joint names and you had another income in the household?

Mirroring other comments, your monthly payment is staggering considering your circumstances. DSS payments to the mortgage generally exclude you.

Has your current lender stopped lending currently? ie is it someone like SPML or Preferred?

Regards
Si

jonesMUFCforever

First post - improbable scenario - what do you think - it smells fishy to me.

daveyliver

Jesus, the dss pay your mortgage???? surely its a temporary payment as you would get everyone doing it. No offence to the OP.

Conrad

Kezzell, welcome

I'm wondering whether you were missold a mortgage that was not appropriate for your needs.
Apart from getting compensation for misselling your only hope may be selling up and starting over, but you may have to rent until your income and staus meet lenders criteria.

silvercar

The benefit system will pay the interest only (not capital) on the first 100k of a mortgage at a defined interest rate. There is also a delay (I think around 8 months) before they will start paying. At say 7%, the monthly payment would be less than £600.

If this tale is true, either OP has very special circumstances that justify more or he/she is using some of their other benefits towards the mortgage.

Either way if you are not going to be able to afford the mortgage and there is no outlook of employment, the answer is to sell up and rent.

kazzah

Perhaps you could find a way to fund some of the additional payment you will need to make when you re-mortgage?
If you can't get a mortgage at a similar rate and obviously you don't want to leave your home there may be other ways to supplement your income.
My niece is ina similar position on an interest only mortgage after having her 2nd baby and taking some time off work - she now has foreign language students staying for short spells - they come for about 5 days and she gets paid about £100 per week for each of them - she has 3 a t a time so gets an extra £300 -600 per month for them - they share a loft room at the top of her house and the language school are fine wbout them all in one room - in fact the lady from the school sugeested it as my neice only had 2 beds in the room and the lady suggested she get a bunk bed in and have 3 to the room!
It's not the same as having a lodger as she can pick and choose when to have them and how many to have at a time.
It's just a suggestion - I hope you manage to get things sorted out - its a worry when you can't meet your mortgage repayments.

dmg24

kazzah wrote: »

Perhaps you could find a way to fund some of the additional payment you will need to make when you re-mortgage?
If you can't get a mortgage at a similar rate and obviously you don't want to leave your home there may be other ways to supplement your income.
My niece is ina similar position on an interest only mortgage after having her 2nd baby and taking some time off work - she now has foreign language students staying for short spells - they come for about 5 days and she gets paid about £100 per week for each of them - she has 3 a t a time so gets an extra £300 -600 per month for them - they share a loft room at the top of her house and the language school are fine wbout them all in one room - in fact the lady from the school sugeested it as my neice only had 2 beds in the room and the lady suggested she get a bunk bed in and have 3 to the room!
It's not the same as having a lodger as she can pick and choose when to have them and how many to have at a time.
It's just a suggestion - I hope you manage to get things sorted out - its a worry when you can't meet your mortgage repayments.

This income would affect the OP's entitlement to IS, and quite possibly wipe out their entitlement altogether.

I would also welcome further information from the OP, as currently the story just does not make sense. I am not aware of any circumstances where the interest on more than £100K will be paid.