SMI is forcing me into homelessness!

mellyg

I worked for 30 years until I became seriously ill.

My mortgage is £800 pm, SMI only pays £167pm towards the interest, and charges me a huge amount of interest for this insult. I am therefore responsible to pay the difference every month. So far I have sold jewellery etc left to me by my grandparents, I have cashed in my entire pension and sold anything i had of value. Debts for utilities etc are now in their thousands and I receive letters daily about disconnection, and now these debts have now been added as charges on to my property along with the SMI plus interest loan.
My house has serious repairs needed (broken windows, horrific damp, no locks on the front door etc) that I can't afford to fix, or even buy the supplies to try and fix myself.

I am a disabled, single mum with a child in school and my house is now being repossessed as I have no possible way of finding over £650 every month. I have been told that as my disabilities are lifelong, my situation is highly unlikely to change and therefore non payment of the additional mortgage each month is no longer acceptable to my mortgage company.

If I had chosen to never have worked, lived in a Council house on benefits, rent paid for, or even in the private rental sector, with the rent paid for, the property would be maintained, updated and repaired at no additional cost to myself,

If I lived in a Council property, I would also have the right to buy that house for less than half price, to later sell on at full price, making a minimum of £200k profit, having never paid a penny into the tax system.

I'd like to add that council houses in my area often have new cars and even speed boats and motorhomes parked outside, with these unemployed families posting on social media of holidays abroad, meals out etc. The rent (for the working few) is, on average, £300 pm for a 3 bed council house, even if they earn £150k+ a year, or it is covered by tax payers if they decide they cant be bothered.

Despite the fact that the government are in complete control of my housing or homeless situation, and therefore, in affect, my landlord, they refuse all responsibility as such and state that I am fully responsible financially and physically for any repairs, no matter how serious or dangerous or detrimental to our health that the situation is. .

Solutions I have looked at....

To rent locally, is on average £1200 pm for a 2 bed property, the waiting lists for these are extremely long due to the shortage of housing crisis throughout Cornwall.

Even If i could find somewhere to rent, I would be entitled to over £900 pm housing benefits, paid to a private landlord. Instead of the £167 I get now.

Rent out a room..... This gives me income which is then taken off my benefits or they are stopped altogether.

Sell my house… not enough left to buy anywhere else but enough to stop all entitlement to benefits and still no houses available to rent.

Hand the keys to the mortgage company and walk away from my home of 22 years.... No longer entitled to help with housing as I purposefully made myself homeless.

Before diagnosis, I had a high paying career for 30 plus years, My tax contributions would have paid for my house and my future, ten times over. I now have nothing, and soon not even a roof over my head.

If a fully abled person can decide never to do a days work, be paid a monthly sum AND receive a free house paid for by tax payers and then rewarded with a fully maintained house at half price, with the option to sell it, earning an additional £200,000 profit then, it is abundantly clear that the government are not only corrupt but have an indisputable, highly offensive discrimination against disabled persons, like myself.

Advice welcome!!!

Rosie_Scope

Hi @mellyg, welcome to the community. It sounds like you're in a really difficult situation, sorry to hear things have been so stressful for you. Are you on any other benefits at the moment?

I wonder whether it would be helpful for you to speak to an adviser about everything. Advicelocal have a directory that might be worth looking through. Perhaps someone with housing knowledge or benefits could help find a way forward?

There's also Citizens Advice, sometimes they can help look at the bigger picture for you.

I hope you can find a solution soon.

Biblioklept

Except to say that I hope one day you realise how judgemental you're being about people you don't even know, I'm won't say anything else about your comments of other people, because I can imagine how stressful your situation is and you're looking for someone to blame

A couple of suggestions, one being to let you know that income from a lodger is ignored for Universal Credit and won't impact your benefit amount, so that's probably your best option!

If you've been paying your mortgage for 22 years is there possibly enough equity to consider selling and downsizing? You said your tax contributions alone could have paid for your house and future so with your income you must be close to paying it off completely? I know a smaller house or bungalow or flat might not feel idea but might help and mean you won't lose what you've put into the house so far ❤️

MW123

https://forum.scope.org.uk/discussion/122214/smi-is-forcing-me-into-homelessness

I am truly sorry to hear about the challenges you are facing. It is understandable that the suggestion from your mortgage company, which implies non-payment is no longer acceptable due to your lifelong disabilities, is deeply concerning. Under the Equality Act 2010, lenders are required to treat you fairly and assess your affordability based on your financial situation, not your disability. They must consider reasonable adjustments to accommodate your circumstances. It may be worth seeking legal advice or contacting the Financial Ombudsman Service to ensure the mortgage company’s actions comply with the law and are not discriminatory.

Given your 22 years in the property, you have likely accumulated significant equity, even considering the current condition and the necessary repairs needed for your home. Cornwall’s property market remains highly desirable, so your home could still hold substantial value. A helpful first step would be to obtain a professional valuation from a local estate agent.

Next, review your mortgage balance to understand how much you still owe. If selling the property becomes a viable option, you could use the equity to pay off your mortgage and any outstanding debts. This could help you secure a more manageable rental property in your current area or even purchase a new property in a new location.

By managing the sale yourself, you can evaluate the best offers and potentially secure a higher price, resulting in more equity from the sale. In my experience, companies dealing with repossessed properties often prioritise a quick sale over maximising the sale price. Taking control of the situation now allows you to influence the offers you receive and could result in more money in your pocket.

I hope you find a path forward that offers you relief and stability. Your situation is undeniably difficult, and I wish you all the best in navigating this situation.