On benefits how can I change my mortgage deal?

leilasmummy · 20 April 2017 at 9:38AM

Good morning, I'm currently on benefits and I have a mortgage, am I able to switch to a better deal? or will that risk that my mortgage will be declined due to being on benefits. I currently recieve help for my mortgage so the company is aware.
But I'm scared they could ask for it all to be paid back cos currently I have no means of paying it (it's on interest only ).
Any ideas.

csgohan4 · 20 April 2017 at 9:46AM

did you have a payment vehicle in place when you got the interest only mortgage?

Downsizing maybe an option?

When does the mortgage finish?

leilasmummy · 20 April 2017 at 9:56AM

I've got no payment vehicle in place and my ex husband had all my savings.
Can't downsize but otherwise great idea. (Can't get any smaller than what I have ) .
Got more than 10years to run which is fine as on benefits is only short term it's just my current deal is awful and if I was working I would change it immediately. But worried I can't cos of being on benefits.

macman · 20 April 2017 at 10:30AM

You can apply, assuming you are out of any minimum term, but your application will be based on your current income. So if you expect your income to rise in the near future, wouldn't it be better to wait?
Not really possible to give more specific advice without knowing the size of your mortgage, income etc.
But how are you planning to repay the capital in 10 years time without any repayment vehicle in place now?

blueorchid_2 · 20 April 2017 at 1:29PM

yes it is possible. see this for a workaround: http://www.moneysavingexpert.com/news/mortgages/2016/06/i-was-a-mortgage-prisoner-but-escaped-thanks-to-mse-and-saved-3600

On benefits how can I change my mortgage deal?

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