Got a mortgage when I was employed. Now on benefits, and looking to change. Anyone done this? — Scope | Disability forum
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Got a mortgage when I was employed. Now on benefits, and looking to change. Anyone done this?

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yves
yves Scope Member Posts: 19 Connected
edited July 2021 in Housing and independent living
Hi there,
I'm yves, new to the forum so hi everyone. 
I wonder if anyone has any advice on mortgages,  I have a mortgage which I've had for 10 years now however, I was employed when I got the mortgage.  Its only the last two years I have been on ESA, PIP and UC, I am still managing my mortgage payments but I am looking to change to get a better intresg rate , the one I am looking at will save me £110 a month to what I am paying now.
So...the question is has anyone done this ? How did you get on , were you approved etc., any advice would be really appreciated 
Thank you
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  • janer1967
    janer1967 Community member Posts: 21,964 Disability Gamechanger
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    Hi and welcome to the community 

    You may struggle to get a new mortgage if your only income is benefit unfortunately 

    I know it doesn't make sense as you are keeping up your current payments 

    Unfortunately it's just the way it is 

    There are lots of other posts about this on here which may give some advice 
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  • woodbine
    woodbine Community member Posts: 11,655 Disability Gamechanger
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    hi @yves and welcome to scope, hope you are enjoying the warm weather?

    As above it's never easy to get a mortgage/re-mortgage when your income is benefits, for obvious reasons really e.g you could lose them at any time.
    What I did some time ago when in a similar situation was to ask my lender if they could offer me a better rate, and to my amazement they reduced my rate by 1.2%.
    As for getting a new mortgage you could try a "whole of market broker" they often have lenders avaliable to them that other brokers don't.

    Have you considered applying for SMI I know it's now a form of loan but it will save you money in the short term.
    The link below explains

    https://www.gov.uk/support-for-mortgage-interest
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  • Rachel3508
    Rachel3508 Community member Posts: 4 Listener
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    Hi!
    I've recently had this issue since my husband was made unemployed. I agree with previous answers,  you probably won't get a new mortgage,  but you will be able to change your product with existing mortgage provider and,  if you've been with them for 10 yrs, you should get a decent rate. My fixed term mortgage just finished and our current provider gave us a much better rate and saved us £120 on our monthly payments, even though we've no employed income at the moment. 
    Hope this helps. 
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  • yves
    yves Scope Member Posts: 19 Connected
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    Thank you , it does help and is encouraging . I have spoken with the bank they are sending the forms over
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  • yves
    yves Scope Member Posts: 19 Connected
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    Hello again,
    Just an update really. I've had the forms back from my existing lender,  completed them and returned,  just waiting for a decision.  Logically it makes sense my existing lender offers the new intrest rates as it makes my mortgage more manageable financially however, you always have that sinking feeling they won't help . My PIP is up for renewal too , it was my first time claiming previously and although I got enhanced rate  for living , I didn't for mobility, I appealled, ended up going to a tribunal and I won.
    Why is it as disabled people we have do much forms and fighting to do ...my medical records tell all there is to know how it effects me  including mental health . Sometimes it's hard to stay positive xx

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  • yves
    yves Scope Member Posts: 19 Connected
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    Hi all, just to say my mortgage provider went ahead with my application and I have a lower rate of intrest which has saved me £180 per month,  for the next 5 years. You just have to be persistent with them , it does take a longer time,  my case about 6 weeks but I eventually got it. Hope this helps others x
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  • Tori_Scope
    Tori_Scope Scope Posts: 12,492 Disability Gamechanger
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    Thank you for the update @yves :) I'm glad that you managed to find a solution. I'm sure that other members will find this helpful to read!

    I bet that's a weight off of your mind?
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  • yves
    yves Scope Member Posts: 19 Connected
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    Thank you, it certainly was.
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  • L_Volunteer
    L_Volunteer Community Volunteer Adviser, Scope Member Posts: 7,978 Disability Gamechanger
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    That sounds really positive @yves. I am really happy for you  :)
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  • yves
    yves Scope Member Posts: 19 Connected
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    Thank you 😊 
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