need urgent info on mortgage for my friend

[genesco]

Bassically she is on benefits and has an interest only mortgage on variable rate, the rate has gone upto 9.9% and she can not afford to keep up with the payments, she has asked the mortgage company if they can change her onto a lower rate but they say they can't help her, she can't remortgege cause she is not working.

 

Is the mortgage company obliged to help her beable to pay

 

What can she do she is desperate she has a new born baby and she doesn't want to lose her house.

The council are paying some of the mortgage but onle a fraction of it

 

What can she do.

[nathal]

only advise i could offer is to shop around. Possible to get better rates by putting up a bigger deposit if possible

[nathal]

also maybe she can apply for a payment holiday/break

[paddym]

i personally think your friend needs to speak to citizens advice or a solicitor.if as you say shes not working then why not go along to the dss and see can they help her out !i dont know how it works but im always reading in news papers how people on benefits get help with housing costs ! sorry i cant be of any other help as i havent any experience when it comes to benefits and the like !

[lesser1010]

who is her mortgage company?

[gizmo111]

Bassically she is on benefits and has an interest only mortgage on variable rate, the rate has gone upto 9.9% and she can not afford to keep up with the payments, she has asked the mortgage company if they can change her onto a lower rate but they say they can't help her, she can't remortgege cause she is not working.

 

Is the mortgage company obliged to help her beable to pay

 

What can she do she is desperate she has a new born baby and she doesn't want to lose her house.

The council are paying some of the mortgage but onle a fraction of it

 

What can she do.

 

As i understand it the DSS will pay 100% of interest on a mortgage if you are claiming certain benefits- this takes about 9 months to kick in, then they will pay 50% of interest for 13 weeks and then all interest for as long as you areentitled to benefits.

 

Shelter have experts on this sort of situation and provide a free service - most areas have a drop in centre so I would direct her to them.

[genesco]

Thanks for your comments, the dss say that because she remortgaged a while ago they will only pay the interest on the original mortgage.

[ukaviator]

Hi Team

 

Your friend is in bad situation. The mortgage seems to be an Interest only one, which means that you are in effect paying rent only.There is'nt anything coming off the mortgage loan amount. Without a job you are tied and can't even change the mortgage. What needs to be looked into here is :

 

1. How much equity is in the home?

 

2. What are the Mortgage payments?

 

3. How do you intend to payback the Mortgage after the term?

 

4. How much to rent from a housing association?

 

If you can't pay this back, long term it may be beneficial to your friend to sell the house and pay off any debts with the proceeds.It maybe better to rent from a housing association than to get further into debt and possibly lose everything, including any equity. Once the sharks get going,there may not be much left.

Some people rely on inheritance to payback what they owe. Need a bit more information to be able to advise you more. Remember this is just advice, always seek legal help and do your research carefully.

 

Hope this helps

 

Uk...

[gizmo111]

Hi Team

 

Your friend is in bad situation. The mortgage seems to be an Interest only one, which means that you are in effect paying rent only.There is'nt anything coming off the mortgage loan amount. Without a job you are tied and can't even change the mortgage. What needs to be looked into here is :

 

1. How much equity is in the home?

 

2. What are the Mortgage payments?

 

3. How do you intend to payback the Mortgage after the term?

 

4. How much to rent from a housing association?

 

If you can't pay this back, long term it may be beneficial to your friend to sell the house and pay off any debts with the proceeds.It maybe better to rent from a housing association than to get further into debt and possibly lose everything, including any equity. Once the sharks get going,there may not be much left.

Some people rely on inheritance to payback what they owe. Need a bit more information to be able to advise you more. Remember this is just advice, always seek legal help and do your research carefully.

 

Hope this helps

 

Uk...

 

highly unlikel yshe would be offered a housing association place as they pick up from council lists - it may be an idea to look at shared housing options with a HA - but there is still the problem of no job.

[ukaviator]

Hi Team

 

She will stand a better chance with the Council or a housing association as there is a young child involved. Gets priority in these situations.We need more information to be able to help more.

 

Uk....

[gizmo111]

Hi Team

 

She will stand a better chance with the Council or a housing association as there is a young child involved. Gets priority in these situations.We need more information to be able to help more.

 

Uk....

 

As long as she isn't found intentionally homeless. Priority doesn't mean accommodation they will usually offer B&B or similar temporary accommodation for 6 months. Of cours if she sells and gets a private rental then HB should cover it - deposit etc could be covered from house proceeds.

[ukaviator]

As long as she isn't found intentionally homeless. Priority doesn't mean accommodation they will usually offer B&B or similar temporary accommodation for 6 months. Of cours if she sells and gets a private rental then HB should cover it - deposit etc could be covered from house proceeds.

 

Yes i agree..We need more information, renting privately or with shared ownership will probably be the only way.If it carries on like this, she will be broke and maybe lose the house and any equity left in it.

 

Prevention rather than cure as i see it

 

Uk...

[saraounia]

Thanks Gizmo111 and Ukaviator. Just thought I'd say thank you. Have learned a lot from that.

[tamadus]

I believe the DSS only pay upto limits they set, as they are not covering the full payments my ex wife is making. she has a shortfall of about £120 a month they refuse to cover.

[gizmo111]

I believe the DSS only pay upto limits they set, as they are not covering the full payments my ex wife is making. she has a shortfall of about £120 a month they refuse to cover.

 

Not neccasarily true that they have set limits - there will be a reason why she has to make up shortfall - they will pay interest on mortgage after 39 weeks @ 50% and then after 52 weeks @ 100% - what is your wifes mortgage and how long has she been cliaming?

[tamadus]

Not neccasarily true that they have set limits - there will be a reason why she has to make up shortfall - they will pay interest on mortgage after 39 weeks @ 50% and then after 52 weeks @ 100% - what is your wifes mortgage and how long has she been cliaming?

 

she has been claiming about 12 months now and her mortgage is interest only. They didnt start at 50% because she does claim benefits for mobility. But they only pay about 80% of the total payment. Maybe she should get back onto them again.

[ED1237]

As far as the DSS goes, they will only pay to a certain amount. This is based on a maximum interest rate, so If you are on a non high street rate you already have a shortfall. Also if you have remortgaged they will only go up to the original amount of mortgage, They also only pay the interest part of your mortgage. They do not pay for the first 29 weeks unless you are claiming certain benifits (Not sure which ones apply). All in all it can be to little to late. What she could do, is look into a company they purchases the home then rents it back to her. The DSS will pay the rent. Some of these companies have written into the contract a clause that allows buyback at a preferential rate. I am not sure of all the ins and outs of these schemes but may be worth a look