Mortgage and unemployed

[sj01]

Hi, I have a mortgage of about £97,000 and my house is probably worth £270,000.

I am now unemployed.

I want to buyer a cheaper house that would then reduce my mortgage to about £20,000 but my mortgage provider wont give me another mortgage even though it will be much smaller.

I have never been in arrears and always paid on time.

I am now stuck here and can't move and soon I will find it hard to pay the mortgage.

I dont get help with my payments because I have a child who earns living here.

Does anyone know of a lender who would help me.

Thanks.

[applecart]

Hi ya, I can see a lot of people have viewed your post, but have not responded as yet - don't worry, others will come along soon.

 

You sound totally fed up : (

 

Regrettably, I know of no lenders that are offering mortgages to the un-employed - I don't think they have ever knowingly done this.

 

In the current market, chances of getting a mortgage are slim even if you were employed.

 

Have you considered putting your home on the market for sale? In an ideal world it would sell for £270K leaving you £173K surplus - with that, in the current market you could buy a house outright and be totally mortgage free - Auctions are a good place to get a house cheaply.

 

I hope this helps : )

 

Apple

[sj01]

Thanks for your reply,

Yep thats what we want to do but the place we want is £190,000 and thats only a 2 bed flat where we live.

With costs it would mean we needed to still borrow a bit and thought that wih all the equity and never being behind in payments they would just let us port the mortgae but no luck.

Never mind, the government say there is help for people getting into trouble but in reality there is not much help until your actually in a big mess.

[applecart]

No problem.

 

£190k just for 2 beds - wow!!

 

I think we are living in an age where what we want and what we can afford are completely different now. This certainly applies to any seller' - it may be that they are willing to take less than the asking price - especially if it means they can move on - always worth asking....

 

You'll need to see what you can definitely get for yours first though before you can begin negotiations.

 

All the best though whatever you decide to do : )

 

Apple

[DaveHam]

If your child is going to continue to live with you then have you considered putting them on the mortgage along with yourself? There are ways to protect the equity in case you had concerns that your child would be entitled to their share of the property.

 

Additionally there are lenders that take into account state benefits therefore achieving £20k mortgage may be within reach.

 

If payments are stretching your finances then consider speaking to your existing lender and explain your financial situation. They have an obligation to help and changing the mortgage from repayment to interest only, if only in the short term, will help give you some breathing space.

 

Good luck!!

[sj01]

Thank you.

I asked for help a little while ago for breathing space. I am already on interest only and the building society said they could not help me with a mortgage break at that time.

I have just been informed by them that my interest only deal is ending and unbelievably my new payment is £20 per month less.

I dont understand it but you would have thought they would have told me this when I was asking for help.

I shall ring round a few places tomorrow and see what I can do. Thanks for all the advice.

[DaveHam]

At least there's some good news re the reduction in monthly payments. Although I'm slightly confused by it, I dont think we should complain.

 

Getting a mortgage for you given your current circumstances could be possible, what you need is an experienced broker who is totally independent. Speak to friends/family for a recommendation and they'll be able to let you know what your options are going forward. As it stands it may feel as though you're trapped however by speaking to a professional in this field will remove the uncertainty and give you a clearer direction on what to do next.

 

Best of luck...!