Help or advice please - mortgage arrears

[closetoyou]

nybody offer advice please? Mortgage.

Hi..I am wondering if anybody has any advice.

I was in arrears to my mortgage company because I was unable to find work at 55 years old.

They agreed mortgage re payments of the basic which was £400 per month plus some off the arrears which I paid another £150 on top.

In fairness, they extended this agreement for several months . 

Eventually, they demanded I pay the full agreed amount per month. £1,320.

I managed to get a part time job and this along with my private pension enabled me to pay that amount, I say allowed, but I have absolutely no quality of life whatsoever and my 86 yr old mum pays my council tax with her disability money.

I had been on a fixed rate mortgage with the company which comes to an end in May.

They now cannot offer any other offer and I must go back to the ordinary rate.

This will push my repayments up by another £70 per month

There is absolutely no way on earth I can afford another penny over the £1320 I am struggling horrendously to pay.

My mortgage still has £119,000 on it.

I am able to pay a considerable amount each month because that is all of a private pension I got after paying in for over 35 years.

I have asked the Bank if I can extend the years I pay my mortgage for.

They said that they do not do this because the mortgage must be paid in full by my 65th birthday, which is 9 and a half yrs away.

Whilst I understand that 65 is a recognised age for pensions etc, it does not apply to me as I will always have my private pension which is indexed linked but will never drop each month unlike some.

Also, if I die, I have full mortgage protection policies and life policies.

I just cannot see why they cannot extend the term which would help me enormously.

They insist there is nothing that they can do and I don't qualify for any fixed rate because of the recent problems

They may just as well have the keys back now because paying another £70 a month will topple me so we are in a stagnant situation.

Can anybody please give me a hope.

[Ell-enn]

Hi, how much are the arrears ?

[closetoyou]

Hi..sorry about the delay...£520

[assisted blonde]

is there any equity in the property, would you be able to sell and buy somewhere with a smaller mortgage?

[closetoyou]

Hi...thanks for replying..there is about £80,000 equity...Not keen on moving, don't have any cash to actually move and prob will never get a mortgage then especially living in London.

 

Do all mortgage companies ensure that you finish your mortgage by aged 65?

[bradfordlad]

Hi closetoyou,

 

Some lenders have an old fashioned view on this, considering there is now no statutory retirement age. Depending on your occupation, some lenders will let you go upto 75, but in all cases you will need to prove your retirement income.

 

hth

 

BL

[closetoyou]

Many Thanks....Yorkshire said that it was their policy but the way it was said, gave me the impression it was set in stone everywhere. There is no problem proving my income for the future. I have a feeling they won't budge so I have no idea what my option will be . I owe £520 arrears so no other company will want to take me on.

[assisted blonde]

Try asking around a bit, as there is equity in your property although you are slightly in arrears you may get another deal, but although it may be for longer the interest rate could well be a lot higher

[closetoyou]

Many Thanks..I will give that a go x

[BornThisWay]

Hi closetoyou. I have been reading that Yorkshire Bank is now owned by an Australian company and I suspect they will be trying to reduce their 'sub prime' mortgage cases now - which in their eyes is what you have become. As such they will use any excuse to get rid of you and will not be inclined to extend your term. When you are older - say 65 - it is possible that another company would let you change from a mortgage to equity release - which means that you give them a share of your property - available to them when you die or sell the property - in return for capital. This is a bit of a long shot, but I have seen someone do it recently and it has worked well.

 

Alternatively how much would it cost to rent? I know you don't want to move but you are in a similar position to me. While I want to own my own property it is costing me a fortune to pay the mortgage and that is giving me no quality of life. Unfortunately once you have had arrears you become black listed by all lenders and the very reasonable current standard variable rate is not available to you and you end up paying through the nose.

 

I fear you are going to spend many years servicing this debt when you could be renting for less and enjoying life a bit more!

 

Sorry to be callous, but is there any chance your mum will leave you money when she dies? It can't be relied upon because long term care costs can quickly swallow even large sums - but it is something which could help you in the future.

 

Anyway, I do sympathise with your plight, but be assured you are not alone! If you were able to sell and then bank the equity and save a little each month you could well have the funds to buy a small retirement appartment in due course as they seem to come in at reasonable prices.

[closetoyou]

Thank you very much for your post.

It is much appreciated.

Unfortunately, My mum has next to nothing and she helps me out with, or rather my deceased dads pension.

I live in London and to rent would leave little difference between that option and paying the mortgage now.

I was going to write them a letter saying, quite rightly, that this increase will break me completely and that I just cannot possibly afford another penny.

I often wondered about these equity-- plans. I know that they can be a problem but it is good to hear it has worked.

I wonder if I clear the relatively small arrears, - mum again - they may reconsider.

They actually told me at one point it was because I had cancelled more than one direct debit. - i cancelled 2 but informed them I was doing so.

That was when I was on my payment plan and it was coming to an end and my payments were due to jump to the present amount and I wasn't yet in my part time job.

However, I still paid the amount for my payment plan and never missed a payment.

I then went on to full amount.

I can only try.

However, thanks very much and I will post when I hear something x