Mortgage troubles

[Cuppa123]

Can someone please help me with some advice. I spent over an hour on the phone this morning to my mortgage provider to tell them I can't pay next months mortgage and to ask for help in either reduced payment or interest only repayment for about 3 months to help me get my finances in order. Bit of background info: I have about £8000 arrears from 5 years ago when my partner died and for a while I couldn't pay, but I have been paying the mortgage itself off regularly with no breaks after that happened. I am single mum, 4 kids, one is at uni. And three at home. I do not know what to do now or who I can ask for help. I have regular income which normally covers the mortgage etc, but this has been hit hard by food, fuel and electricity prices. I have tried cutting all costs as much as possible, working as much as I can, but I find myself at an impasse now. I have no savings left. The bank have said no help is available. So I either pay the mortgage and have no money for food etc, or I don't pay the mortgage. Can someone please suggest where I can go for temporary help and advice.

I'd try citizens advice.

Yes contact your local citizens advice. Prioritise paying your mortgage and council tax over other bills. CAB can issue you with food bank vouchers if you have no money fir food.

How much money do you have coming in and how much going out?

Speak to he debt help organisation stepchange. They can help with letters to creditors etc. Speak to your GP or local church and explain you need referrals to your local food Bank and they can help provide you and the children with food. Check on entitled to to make sure you are claiming all the benefits you are entitled to. You can get help.

Speak to your energy provider. They have schemes to help people who are struggling tha you may be able to get help with. The best thing you can do is reach out to all of these organisations. If you have a local church or the salvation army get in touch and they can support you too. Don't suffer on your own. Register on the app Frolo. It's s great community for single parents.

Unfortunately things are likely to keep getting more expensive, especially in the short term. Can your uni age child get a job to help contribute? How about any of your other kids? How old are they? Could you get a second job or a lodger? Sorry you are in this situation. Have you checked to see if you are entitled to any benefits?

How much are you short for the month?
And why did you select the mortgage as the thing that you can't pay?
It will depend on your income, but British Gas (you don't have to be a customer) and the water company should both have schemes for people in hardship. They are worth contacting.

Food bank to reduce the shopping bill.

Are you one of the people who pay council tax in 10 monthly installments? Does that mean there is no council tax to pay this month?

depending on your mortgage deal. Can you do a product transfer with them, and extend the term?

You always always pay the mortgage or rent first - it's the most important bill of your life. Not paying runs the risk of them pulling the product and forcing you out of the house, and being left unable to get any more mortgages and frankly you'll struggle to rent anywhere as well. £8k mortgage arrears may also mean your credit rating is already shot to hell, so you need to protect this mortgage as far as you can.

What is your income and how much (total) are your outgoings? How much are you short by?

What will change in the next 3 months to get your finances in order?

I assume from what you've said that you've cut back on all the extras - TV subscriptions, packed lunches instead of paying for them at school etc?

I'm very sorry for your loss. It is very scary. You say your DP died. Did you get bereavement support help? I only ask because you said DP not DH so you might have fallen into the abyss re this but it has recently been resolve and can be backdate to August 2018 - www.moneysavingexpert.com/news/2023/02/bereavement-support-payment/#:~:text=Bereavement%20support%20payments%20are%20now%20available%20to%20unmarried,Below%20we%20explain%20all%20you%20need%20to%20know.

What type of mortgage do you have at what rate? Is there a break clause? How much equity do you have in the home?

Bank unlikely to offer but if you have the equity you may be able to switch a portion/all to interest only which should drop the repayment amount a fair bit.

I agree with above. Mortgage is the first bill to pay. You can’t risk being forced out of your home. Food banks are an option for eating and maybe family will help out with food too? There are ways to get help with food but the mortgage will spiral if you don’t pay it. Have you checked you’re getting everything you’re entitled to? I don’t know if free school lunches are applicable as a single parent/ if you’re on a low income? At least the kids would get lunch and you wouldn’t have to worry about that meal. I hope you get sorted.

Prioritise your mortgage over anything else and your council tax. Energy schemes might be able to help, food from food banks. Look into career progression/higher paying jobs. Collect money from the working dc.

www.cap.org.uk

@Cuppa123 that is such a stressful situation. Choosing feeding kids or paying the mortgage is not a easy decision. A mortgage is significantly cheaper than renting a comparable house so long term it makes sense to prioritise that.

Getting a CAB appointment is difficult at the moment so you may need to approach a debt charity to help you. Step Change or PayPlan are both free.

Not all foodbanks needa referral and even if they do it is not just CAB that can issue a referral. This will take a little pressure off you. The other place to look at is community pantries in your area. Some focus on reducing food waste &are open to everyone.

Also call your local authority and see if they can defer your council tax or rearrange the payments over the remaining months... Again to buy time.

Other savings .. check through your bank statement and cancel any DD you can.

The frugaleers threads are a really supportive place and there is a wealth of advice held in posters collective heads. It is also a great place to rant about the unfair/ shitness and get a bucketful of sympathy.

Can you remortgage to extend the term? Reduce payments?

I

I have already checked all benefits are up to date. The children are 12,13 and 17, but we live in a rural area so any job for the 17yr old will require transport. The 18 yr old at uni does work too, but her loan does not cover her accommodation fully so she needs every penny. I have been in contact with Stepchange and am now working with them to help with the mortgage arrears, so thank you for suggesting them. Things financially had been ok up to a while ago, then hit the fan with cost of living. I had an increase in my part time wage, but this was wiped out by the mortgage rate increase. Things also not helped at the moment that I have split up from my partner (did not live with us) of 5 years who was no help or support whatsoever in the last while, despite being in a very comfortable position financially. I don't mean I would expect him to bail me out financially, just there was nothing from him, even a bag of groceries when I told him I things were dire. When he let it slip out one day that my problems were not of his making, that was the end of things. Shit times indeed.

Are you aware that if your partner was the father of your kids and you did not receive bereavement support payments because you were not married, you may now be able to claim because the rules have now changed and I believe you can make retrospective claims. This may be something you have pursued already so apologies if this is the case. My neighbour lost her partner when her child was one year old and has just received over 10k in payments. It would be worth looking into.

Sorry just seen someone else has already posted regarding this. Cross post.

@Cuppa123 if you post on moneysavingexpert you'll get lots of support and practical advice ongoing.

Did you take out life cover when you and your late partner took out the mortgage? It would have paid out on their death.

We had life cover for years, but when we had child number 4 and were paying childcare for 4 kids, that all stopped. Our childcare was 3 times our mortgage per month.

Have you received the Bereavement Support Payment?

This sounds really tough.

You talk about working part time. I wonder whether it would be possible to increase your hours either permanently or by doing overtime for a few months?

could you have a really honest conversation with the 17 year old so that they understand the situation and ask for them to be present for the younger children whilst you work more hours?

The one at uni is paying for accommodation so that sounds like they aren’t local to the home at the moment. Plus they are working too.

Sorry @wildseas i misread sorry ignore my post. Too early!