can you change mortgage lender if you are unemployed?
Written By: admin on October 25, 2009
One Comment
I have been registered disabled since 2001 my husband is my full time carer, we recieve the normal regular benefits. The mortgage we have was a fixed rate, last year this expired. Would we be able to do anything about it as the rates are now lower than when we took the mortgage out.
the benefits are disability living allowance, incapacity benefit, carers allowance and income support
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Tags: disability living allowance, fixed rate, full time, incapacity benefit, mortgage, mortgage lenderTags: disability living allowance, fixed rate, full time, incapacity benefit, mortgage
Most lenders will not take the unemployed on as a new mortgage customer. It’s a shame, as it means the unemployed end up getting ripped off, with the less competitive mortgage deals. It’s a terrible deal that the unemployed and disabled live with, it’s nearly disgusting that the poorer members of society have to live in greater poverty because no-one will take their business.
Check that you’re getting appropriate levels of Income Support, if you’re eligible in the UK, as this will include a payment toward mortgage interest. The % paid rises over time, such that they will pay around 100% of a mortgae interest, at an average rate, in the market. It’s called ‘Income Support Mortgage Interest’, please make sure you’re getting it, if you qualify. Having over £6,000 in savings means people fail to get it.
But, your current lender is very likely to offer you alternative offers, trackers, fixed rate etc. Just beware of penalties of course, as if you were a new borrower.
If there is someone who would become a guarantor for your loan, then you may be more lucky in switching. This would need to be someone of excellent financial standing and not unemployed. Start 1st with your current lender, to make sure that you’re not paying them more than you need to.
Excellent luck! Rob