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Mortgage and Benefits/Pension

FishChipsPeas
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Hi
I will be 66 in March I should have put my house on the market last year - but due to breast cancer treatment the previous year I was not well enough both physically or mentally to be able to do this. My mortgage comes to end this month and the new payment I cannot meet. I have over the past months been in touch with my bank and today I spoke to the Payment Assistance Line - which offered me a lot of help (though my payment is probably more than I can afford) but better than what it should be.I am in receipt of benefits, ESA and PIP I also get help with my mortgage (SMI) I have applied to see what my pension benefits will be (not a full state pension) so I will apply for pension credit.
I am not sure if I will still be able to claim SMI until I sell the house (which I hope to put on the market in May) in fact I am not sure about anything - I am doing all of this on my own - no family or spouse to help me (went through all of my cancer treatment) chemo, surgery then rads completely alone owing to covid and NO family, so I am mentally frail at the moment. I live rural so accessing face to face with anyone is difficult.
Once the house is sold there will be equity left, but it is the period leading up to that, that worries me.
Is there anyone else I can speak to for help and advice?

Thank You

  • Hi  

    Thanks for getting in touch. I’m sorry to hear about your situation but hope that we can provide the information and support needed.

    We have a Welfare Rights Team who will be able to help you with checking eligibility for pension credit and SMI (Support for Mortgage Interest) Unfortunately they are not available on Ask An Expert at the moment but you can contact them on 0808 808 0000. When you call if you select option 1, option 2 then option 2 again that will get you through to the right place.

    I see you have already been in touch with your mortgage provider and it sounds like although they have been helpful, you are still worried about your monthly payments. Many lenders now have specialist support teams for their vulnerable customers. If you’ve not already done so it could be worth seeing if your lender has a specialist support team you can speak with to explain your situation. If your lender is aware you are struggling as a result of your cancer diagnosis the previous year they might be more willing to offer you more help. If your mortgage is with any of the following lenders – Lloyds Bank, Halifax Bank, Bank of Scotland, Nationwide or Virgin Money – please give us a call and we can arrange to get you in touch with their specialist support team.

    There are some options your lender may consider if they are aware you are struggling. They might let you make reduced payments for a specified period of time. They’ll usually ask for your income and out goings first to see what you can afford to pay each month. This would give you some breathing space whilst you arrange the sale of the property.

    Another option they may consider is switching you to an interest only payment for a specified period. Changing to this method of repayment means that you only pay the interest charged on your mortgage. The benefit of this is that your monthly payments will reduce, but your outstanding mortgage balance will remain the same and will need to be repaid as a lump sum, at the end of your mortgage term or you could repay this when the house is sold.

    Some mortgage lenders may let you take a payment holiday. A payment holiday is where you miss a set number of monthly payments (in some cases up to 6 months). It’s important to remember that interest will still be charged and your mortgage balance, as well as your payments, may go up at the end of the payment holiday.

    You may also wish to check with your lender to see if they have any other cheaper interest rates which are more affordable for you. Any deals they may have can involve payment of a fee, so check this first. It’s also important to be aware of any early repayment charges on a new deal, especially if you’re going to be selling the property soon. 

    I’m not sure if your lender has discussed any of these options with you when you spoke to them previously, but it could be worth going back to them and checking what help they may be willing to offer. I would also check with your lender how any option they offer might impact on your credit rating.

    If you’d like to discuss any of this further, the Financial Guidance team is available Mon-Fri 8am-6pm on 0808 808 0000.

    Kind regards

    Calum

    Financial Guide

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