Trying to help a friend who is very low.... Pleaae read and advise xx

[Wizzer77]

Hiya

I have had great advice on here. But now im asking for a friend as she has no internet access, and has just phoned me in tears.

 

Basically she split from hubby in jan n he gone.... She has 2 kids and she works. She has an interest only mortgage and the balance outstanding is £ 143,000 on this. She currentely pays £500 for her mortgage.

 

Basically she is in a job wherw she is so desperately unhappy, she feels that her 2 children need her at home right now so wants to leave her job and go onto benefits for now, untilher youngest is at least school age (her kids r 2&5) she doesnt want to lose her home tho. After going onto entitledto.com we found out her entitlement to tax credits (she will stop paying childcare as well as working) so would only get child tax credits. Then income support and council tax benefit. She wants to know about smi which pays the interest payments in her house, so seeing as its interest only, would itpay her whole mortgage?

 

She knows it takes 13 weeks to come into affect and with help from family she could just about manage, but after that..... She is in such a bad place at mo, i really feel for her and want to help her as much as i can but i couldnt find smi info anywhere, she just wants to know she wont be stuck paying £500 a month mortgage as it would cripple her, she would get nothingfrom selli house, dont know why that would be? She isnt here to ask.

 

Her husband has screwed her over a bit and she just wants to know that kids arent gonna lose there home as well as there daddy (and mummy considering how much she works, for basically not much gain)

Thanks xxx

Edited July 19, 2011 by alfwithhair
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[Nystagmite]

SMI only pays the interest at a set rate, so she may have to pay the capital / rest of the interest each month. If both names are on the mortgage, it would only be her share that gets paid.

[MrShed]

3.63% is the current rate.

[Wizzer77]

But she seems to think that as its interest only mortgage that they will pay the whole £500 as its interest only anyway. So they wou

D at very most only pay half anyway as her ex would be liable for other half?

[Nystagmite]

It depends on the interest rate and the amount (the maximum they will pay the SMI on is £200,00) that was taken out.