Posted on 10 June 2011 by joanne rowe
I am wondering if you can give me some advice. My brother has split from his wife and she is still in the family 4 bedroom home with my brother's son and step son. My brother moved out about 8 months ago and is renting a one bedroom flat as this is all he can afford. He pays her £250.00 a month and another £250.00 towards a loan that is secured on the family home. He can not afford anymore due to paying rent and other bills on his rental property.
He has recently found out that she has not paid the mortgage for the past two months and as she is a self emplyed hairdresser she can not afford to take on the mortgage herself. She is also refusing to sell the family home as she has an early redemption fee of £6000 until 2013. My brother is really struggling financially and is at his wits end. Hence the reason why I am looking into this on behalf of him. Please help. Thanks Jo
Although your brother has moved out of the matrimonial home, he is still party to the mortgage and must talk to his lender if he hasn't done so already. Once they are aware of the situation they will be able to offer help and advice which may include temporarily reducing the monthly payments, allowing them to make payments covering just the monthly interest or extend the term of the loan to reduce the monthly repayments. They can only take repossession as a last resort and must demonstrate that they have done all they can to avoid the situation.
He should also contact one of the free independent advice agencies, such as Citizens Advice Bureau, Consumer Credit Counselling Service or the National Debt Line. Details of all these agencies and their contact numbers can be found on the government website: http://mortgagehelp.direct.gov.uk/. I recommend that you take a look at this site and then work through it with your brother to create an action plan together. You will find more help and information on the Home & Community pages of the main Direct Gov website.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.