Unwell, unemployed and about to be repossessed

[Desparatessusie]

My job was terminated last December ( I refused to take overseas money into my personal account) Fellow directors are now in prison. At the time I felt very unwell but thought it was the stress, it wasn't. I had developed a life changing condition that means I will end my days in a wheelchair. I can no longer walk without aids. I'm late fifties.
I never received my final wages, notice or holiday pay. Neither did my colleagues. We all have tribunal awards which have not been paid. The offices are mothballed.
I contacted my mortgage lender to request an interest only arrangement. They refused. I didn't have a job so I didn't meet their lending criteria. They offered a three month repayment holiday.
I did manage to pick up a couple of months consultancy which I did from my sick bed and duly paid my mortgage with it. However I ve not been able to secure another job. I can't work locally as I can't stand or sit in one spot. My GP is happy to medically retire me.
We've now got to six months repayment holiday and the building society have started the process to repossess the house. I have 25% equity.
This would not buy me a house where I live.
I have a final salary pension due in 12 months but it's got a 90%, penalty for early payment. I have a few shares but they are locked until December 2025 when a company I helped found will be sold.
I've no assets that would raise sufficient funds to pay off the arrears. No jewellery, cars, art etc.
I have two adult DC at home and commuting to university. The older has his finals next year. They fund their selves. I have no other family who could help.
I don't know what else I can do.
Any advice or signposting would be gratefully received.

It’s way more than 2k. 2k just makes her pay the mortgage. She needs to pay all the bills, feed herself on top of this.

My other bills are £1200 per month. I have no arrears on those thank God.

Unfortunately the numbers don't add up do they - losing the house seems inevitable as you need to find £3.2k per month plus something on top to repay the arrears on the mortgage.

If you sell the house how much money is your 25% equity? You'd be better off selling up than waiting for repossession.

Realistically if you don't have an income from employment you'll find it very, very hard to buy another property. It's likely no one will give you a mortgage, especially as you have defaulted on one already.

A few people have said shared ownership but that's not realistic either and anyway it can be quite expensive especially in the SE.

I recommend you speak to citizens advice as a starting point to find out your option, local signposting etc.

Apolloneuro, I just meant ways you can earn money online - Upwork is one and https://www.peopleperhour.com/ another. All kinds of services you can do from home you can bid to provide. I particularly mentioned it as the poster is disabled so typing at a screen may be easier for her than other work and because she seemed to have had quite a successful career and been a director so might have some high value skills to make enough money to pay for the various expenses. Another thing I used to do from home was mark exam papers (they come in stacks and piles and piles of them so not for the faint hearted but useful extra money if you have the qualifications). My children's father (a teacher) has always done a lot of private teaching in free time for 40 years which again you can do from home. I was just throwing out ideas going back to the days when we worked about 7 days a week full time to pay the bills.

Op you need to find 5200 a month just to live, and that’s before you factor in the arrears on the mortgage. It’s not going to be feasible, I think you know this. Call the estate agents in the morning and get it on the market and contact your mortgage provider to let them know.

I worked in council tax and council tax reduction claims, housing benefit and DHP

Just wanted to say I’m sorry to hear of your situation. Sounds very tough and stressful. Is there a charity linked to your disability / condition? Wondering if they might be able to advise/ offer support? Also, does your daughter claim all benefits that she is due, given her disability? Does your house insurance include free legal cover? If so, you could call for legal advice for free.

Thank you all.
It hadn't occurred to me that if I manage to obtain the pension I will have a lump sum. This would clear the arrears.
I did talk to both my DC and have told them we need to downsize. The DS was helpful actually. He is moving away after university anyway for a job.
I know that we can get a certain figure for the house so won't be homeless although any rental will mean six months in advance due to the mortgage arrangement on my credit file.
A couple of posters have reached out with wfh roles. There is nothing wrong with my brain (just stress).
I am speaking to the GP today to see if her medical retirement statement still stands. I may be able to get my JSA increased if I have no such chance of returning to work.

@Frolie daughter hadn't claimed the disabled student allowance. That's now in hand.

How are you getting on OP?

@iamnotalemon oh thank you for asking.
I sort the advice of a financial adviser and he was great in pointing out I had a portable mortgage. He suggested I use it for a cheaper mortgage after i sell the house.
The house has valued up very well and I have an interested family.
I've found a smaller one I can afford on my pension. The porting of the mortgage means I don't have to go through affordability just keep up the much reduced payments. I have money from a share sale coming through in December 2025.
I've also been offered a wfh management role if I think I can go into London once a month. I hope I can do this.
Things are not looking so bad.

That's fantastic news, I'm so pleased for you.
I only just found your original thread but was just checking in on you. Hope you have a wonderful Christmas. Must be a huge weight off your mind x