Mortgage benefit shortfall

[This message has been copied, with amendments, from the 'Employment and Benefits' Topic, in the Employment and Benefits Forum.]

Mortgage payments are a long-term worry for me. I've found that when on Income Support, I can get help in paying the interest part of the mortgage payments, but not the part which repays the loan.

The problem is that as I get nearer and nearer to the final repayment, the part of my payment that is interest decreases, and the part that is repayment increases. The result is that my benefit gets less and less, but the amount I'm expected to pay remains the same.

Eventually, the payments expected may get too high for me to make them. It's rather like being chained below high tide, watching the waves come in, and wondering when the wave that drowns me is going to arrive!

I've tried asking the lender to make the repayments interest-only, until or unless my financial situation improves. But so far without success.

I've not found out how to solve this problem, which must be faced by many others. Would welcome any ideas.

Perhaps I would have done well to re-mortgage earlier on, when I saw the problem coming. But now that I'm on the register as a 'bad payer', I'm unlikely to get a re-mortgage, especially in the current financial climate.
ive only just found out we have the same mortgage shortfall problem.......... really worried about how to sort this situation, any ideas or help wud be greatly recieved
thanks
Hi longtimer and welshbearuk,

I’ve had a chat about this with our benefits and employment adviser and as always he’s happy for anyone to ring him on 0808 800 0303 about benefits and employment issues.

Unfortunately, many people have difficulties every month paying the amount which is the shortfall between what the DWP pays towards the mortgage, and the total amount that the mortgage lender wants to receive.

Because he does not deal with debt/money advice, he would normally signpost these enquirers to:

Citizens Advice Bureaux (CAB) but note that not all CABs are able to provide debt advice. To find your nearest CAB and find out their areas of advice, visit: http://www.citizensadvice.org.uk

or

National Debtline at 0808 808 4000 or http://www.nationaldebtline.co.uk

I hope this helps,
Ezinda