to think the govt is trying to rob me?

[Querelous]

I have a mortgage and am a Disabled LP of a preschooler. I have been a UK tax payer for around 20+ years.

Recent changes interest rate calculations for people on benefits have kept me up all night (I have not had a letter about the changes and am due to finish the year's interest only deal I got into when my husband left in March).

My interest payments have dropped by just under half but still cover the interest -just - though not the ground rent or full service charge (which I have to find from my IS/ ChB / CTC).

I am a LP and my daughter is not due to start "big" school until September. And I have been applying for around 3 jobs p/w since finishing my MA.(I also have MS).

I cannot switch to interest only mortgage due to not having a vehicle to repay the capital balance in place at the end of the term and being on repayment terms and IS I cannot access mortgage support scheme. I am told the only thing I can do is let a housing association buy my property and rent it back from them.

This would mean losing my deposit and 5 years worth of repayments as value has fallen / it would take me out of IS for a short while.

Given that I got my deposit as an inheritance after being a full-time, unpaid carer (not claiming carers allowance) for 4 years for a, now deceased, relative with cancer AIBU to see this as theft / a land grab and to think I should, at least, have recieved a letter about how much the change would affect my mortgage? I have only a state pension to look forward to and this oney was my security for mine and my daughter's future.

My Conservative MP (who recieved a multi million pound bequest from his mum when she died) lives in a £2.7M house in the village I grew up in but could no way afford to live in now - and yet we pay the interest on his mortgage! AIBU to think we are All In This Together but some of us are in it more than others.

I can see that you are facing some rather hefty difficulties this must be very hard for you and I sympathise.

However, why do you think the government is trying to rob you?!?!?!? YABU

It sounds like you are accessing help and advice and that they have offered you a way to try to save the home that you are living in. That doesn't seem like they are robbing you to me.

There are alternatives, but most of these would see you getting into a worse situation before it gets better and would most likely to involve you moving.

Am I right in thinking that you would then qualify for housing benefit to help with the cost of renting back your home?? If you are able to stay in it, why is it so important that you own the home (thus crippling you financially) rather than selling it to the HA and renting it back?

I agree with you - there will always be those who are btter off and not facing the hardship you are - and the 'all in this together' nonsense is certainly not affecting those at the top end of the income brackets - but they are offering you support and options.

Perhaps you should talk to Shelter, or others, about what the other possible options might be. But as I said it is possible these will mean you moving

Who should you have received a letter from? Your mortgage company or the government?

The change in interest rates is Bank of England set - BOE is outside governmental control

If you cannot switch to a mortgage that is the financial sector decision based on your credit rating and circumstances

what are these "interest rates for people on benefits"? Is this some govt. scheme I am unaware of? Please explain

but you are right it's tough, and rich, well-paid people are protected by their buffer so it is tougher for some

I'm sorry you're feeling down but I think YABU.

The government is not responsible for houses having become overpriced assets, nor is it responsible for the housing bubble having peaked, furthermore - as bitter a pill as it might be to swallow - people who are long-term benefits claimants are not really in a position to be running out buying "assets" - in this case a house.

When you say "we're all in this together" - are you saying that you would like "the rest of us" to pay off your mortgage so that in x years time you're left with a huge asset - rather than "the rest of us" paying your rent to an LHA so that the money is essentially recycled in to local government where more people may feel the benefit?

When I say "not in a position to be running out and buying assets" I mean that we all have to live within our budget. I work, but I can't afford a 6-bed mansion or a new Merc either. Thems the breaks!

I'm obviously missing something here. Why would you "lose" the repayment money if you sold - presumably it has reduced your mortgage balance, so less to pay back from the proceeds and hopefully no, or at least less, negative equity (where mortgage exceeds the value of the property) even if prices have fallen. Do you already get govt help to pay your mortgage interest ? Very few now do. Even 5 years ago investing in property (as you did with your inheritance ) was risky and I'm not sure how you got a mortgage with no earned income. Sorry it hasn't paid off , but that will be true for many.

can you get a lodger?

YABU, everyone knows the risks when taking out a mortgage. If you cant meet the repayments then its unfortunate but you could either sell get a lodger, find work in any form rather than hold out for the perfect job/hours) like thousands of others who have a change in circumstances.

The government do give some assistance with interest costs on the mortgage but quite rightly dont cover the whole of it or essentially they would be buying you a house.

On a side point, if you lived their with your husband then surely it was a joint mortgage and he is liable for half the payment.

Are you getting any spousal maintenance? If not you should applt to the courts for an interim order to gewt some money from your husband.

If OP and her husband have a joint mortgage, each is jointly and seperately liable under the conditions of the loan, for divorce purposes the ex has no enjoyment of his half of the property but as there is a child and a disabled wife involved he will not be able to order it sold to realise his half of any capital asset. The court will view that she should pay the entire mortgage in laymans terms she naturally pays her half and she pays his half to the mortgage company in lieu of paying it as occupational rent to him for "his" half that she uses and he can't.

If hubby has sufficient income to house and feed himself with some left over then OP has a strong case for spousal maintenace as well as her childs statutory right to child maintenance.

ah situation is perhaps becoming clearer now. If the mortgage was based on the income including an ex then he is bound to contribute towards the child's home as well as maintenance for the child(via CSA if needs be) and possibly the spouse. You need legal advice on this, nothing to do with govt - CAB would be a good place to start or a free session with a Solicitor. Are you still separated rather than divorced and what financial arrangements are currently in place ?

Agree with the others.

You have a perfectly reasonable way of remaining in your current home, but what you want is to be able to live in it now, plus reap the benefits of having it as a nice valuable asset in years to come- funded by others!!
Thats being very unreasonable.

As for your point about a Tory mp being a multi millionaire - well thats hardly news is it. And many of us cant afford to live in the area we were raised. Ive worked all my adult life and couldn't afford to buy a house where I was raised. That's life. I don't like the way property has become unaffordable and an asset rather than a home,'but that's the reality

this is the reality of being on benefits......you can't have it both ways