Mortgage and mental health issues

[KingArthur1964]

If there is a better place to post this please let me know.

Please bear in mind that I have mental health issues, a hoarding problem and OCD.

I have an interest only mortgage, 25 years have passed and now the whole amount is due, I thought I would sell up but just couldn't cope working full time and dealing with anything else.

I have spoken to a broker, they have found me a new lender but they need to do a survey/valuation, things are very neglected, I've been spending the past few weeks trying to sort it out, it's just me, no one to help, I told the broker that I'm unwell and will contact the surveyor as soon as possible, i have lots of documents from the lender to sign.

I'm struggling and am thinking of telling the broker the real situation that I'm sorting out neglect and hoarding and telling my current bank that wants the payment but I'm a bit scared of what they will expect and that's the reason I'm posting, does anyone work in this area or have any idea what reaction I will get and how understanding they will be.

Another option is selling up but would obviously still have to get a valuation and have people in, I'm not in the best place due to the stress and it feels incredibly isolating.

My head is in the sand in a way but I am busy sorting out as well as I can.

I wanted to add, the OCD greatly impacts the way I have dealt with this, I know it's not ideal but I find it hard to react in a way that would seem reasonable to those without OCD and hoarding, just thought I would add the bit, I couldn't find the edit post option.

I think a thing to bear in mind is that houses sell in any state but obviously you may lose money on it. Is there a church group or someone you trust to help you with clearance? There are specialist agencies that can also help clear and clean if you can pay.

The main thing is to keep your lender in the loop about your difficulties. They may give you more time to sell or offer other options. Worst thing to do would be to bury your head in the sand and be repossessed as this will affect your credit score.

I don't want to get technical but what was your repayment vehicle?

Your house must have gone up in value significantly despite the issues over 25 years too. Get it valued and see where you stand.

Say yes to the valuation.

Are you getting any MH help?

Sometimes a valuation for mortgage purposes is nothing more than a drive past. Are you sure that they actually want to enter the property to do a valuation ?

This, or even a 'desk top' valuation where they don't even visit the area.
It depends partly on the loan / valuation ratio - do you know roughly what yours is?

Ultimately the bank wants to know that they can easily cover their debt if they have to take possession of your home. If yours is a 3 bed, conventionally built semi on Acacia Drive and they typically sell for £400-600k and you are looking to borrow £125k, they may well do a desk top only.

With the new loan, is it interest only again or are you getting a capital repayment type this time?

Thanks for the replies.

@Froniga @Chewbecca
Yes I was hoping that it would be a dest top type valuation but the surveyor is calling me to say when I'm available, the valuation thought based on other flats in the block was 250,000 and I need 38,000 as I purchased a long time ago and have some money to pay off, I'm working hard each day to get ready but it's all very stressful as the bank has to be kept informed and the new lender needs to process stuff on their side and the broker etc.

If you are only needing to borrow 38k and the property is worth about 250k then the valuation will easily be enough, even if it comes in on the low side because of the condition of the property.

The new Lender only wants to check they would get their money back if the flat had to be repossessed. The Valuer is not there to judge you so while I understand your worries, I think you’ll be fine if you allow the Valuation to go ahead and just do your best with it x

Forgot to say that you could confide in the broker if you would like to. But I think the Valuer will be understanding & respectful whether you do or don’t mention it before the visit or not.

Do you work and could you afford a repayment mortgage? That would seem to be the best course of action if it's possible and you want to stay in the flat?

Or how do you feel about downsizing or moving somewhere cheaper? Eg if you bought something outright for under £200k does that look possible where you live?

Do you want to keep your possessions or would you give them up? Just wondering if it's possible for you to buy somewhere else outright, take what you do want to keep and pay a clearance company to remove everything else? How would you feel if that could happen and it would be a new start?

But I wouldn't worry about what the valuer thinks. It's likely they've seen worse before.

Lots of people live in neglected or cluttered houses, my DMs neighbour was the subject of a 'neglected property order' from the council. He'd lived in it for decades without maintaining it, the door, windows, guttering and roof were all rotten and it was affecting other properties. You couldn't see inside because the net curtains had never been washed and were grey and the windows were filthy. The council made him fix it up or else it would be repossessed.

Can you speak with your current bank where the mortgage is and ask for a remortgage for the 38 k that you owe? They may be happy to do that ? Sorry if I've misunderstood

Yes, that's a good idea. If you convert to a repayment mortgage with your current lender, they probably won't need anyone to visit.

What are your finances like could you afford to get a professional company in to do a deep clean and declutter.

Another one suggesting you contact your current bank's mortgage team. Tell them you are disabled and vulnerable and and they should put you through to specially-trained staff who will go over all your options.

OP, you are obviously feeling overwhelmed, so I'm not suggesting now is the time to be doing anything other than what is absolutely necessary in practical terms about your mortgage.

Below is a link to Mind's list of sources of support for hoarding and ocd which includes lots of support you may not be ready for but might find useful once this is over. But Hoarding UK (second url) has an advocacy service which might help with dealing with people like lenders and surveyors. Hope that helps

https://www.mind.org.uk/information-support/types-of-mental-health-problems/hoarding/useful-contacts-for-hoarding/

https://hoardinguk.org/support/support-advocacy/

OP can you afford to hire a clearing company to help you declutter the house and then a cleaner to give it a good clean?