How Can I Buy a House if I Have Been Told I Cannot Afford a Mortgage?

When you remortgage, you transfer your existing debt to a new provider or product and can find far more affordable options than your current repayments.

For example, if you're currently paying a standard variable rate (SVR), you might find that your monthly costs reduce substantially by remortgaging onto a fixed interest rate.

You can also remortgage to consolidate existing debts into one monthly repayment, making it much easier to manage if you have several liabilities and are trying to juggle them at once.

However, this kind of deal can be non-beneficial if you are tied in for a fixed period. Give us a call, and the Revolution team can assess any early exit penalties against the savings on offer to see if this is a viable solution.

Second charge mortgages are often an option where you are tied into an attractive rate with your current lender, which you don't wish to sacrifice, but need a way to raise extra capital.

It's important to remember that a second charge mortgage remains a debt secured against your property, so if you fail to keep up with the agreed repayments, it is at risk of repossession.

While the terms of an interest-only mortgage may be slightly different, many lenders may offer this switching option as a temporary measure to protect their investment, and your property, during a short-term period of financial difficulty.

Interest-only mortgages mean paying off only the interest element of your loan each month without any capital repayment. Therefore, it is necessary to have an exit strategy to evidence how you will pay off the original balance at the end of the loan term.

If your financial situation has changed, a product transfer is also worth considering.

This option is usually most beneficial if you are on your lender's Standard Variable Rate (SVR). These rates are generally much higher than a fixed-rate interest offer, and when you come to the end of an initial period, your monthly costs can jump up significantly.

Product transfers are an alternative to a remortgage, which do not require a full property valuation and are cheaper to organise without in-depth legal processes.

Should you be aged over 55 and be struggling with your mortgage payments, lifetime mortgages or equity release is another potential solution.

These products mean borrowing against the equity in your property, without needing to make any monthly payments - or having the option of making voluntary payments if you wish.

Your home is sold if you pass away or go into care, in which case the proceeds are used to repay the lender, and the balance passes to you or your estate.

There are some schemes available that might help mitigate the financial burden if you are having difficulty making your mortgage repayments.

For example, you can take out a loan called Support for Mortgage Interest (SMI). This scheme doesn't offer funding to repay the mortgage balance but can cover the interest costs. Your loan needs to be repaid when the home is sold.

To qualify for SMI, you need to be eligible for benefits.

A divorce or separation is a challenging experience, and many people find that they are no longer able to afford their mortgage on a single income. Even if you have moved out, if your name is on the mortgage, you are still responsible for keeping up with the repayments.

This situation can have a long-term impact on your credit score, so it's essential to seek professional advice.

Some of the potential options include:

• Transferring the mortgage into one partner's name, which means that if you no longer live in the property, you are no longer responsible for the repayments.
• Remortgaging on a more affordable rate, or on a longer-term to reduce the monthly cost.
• Using a product transfer, again to reduce your outgoings.
• Consider an interest-only mortgage, even in the interim, and explore the options available from your lender.

Unfortunately, there aren't any government support schemes in this situation, but in most cases, by working with an experienced broker, you will be able to find an option that works for you.

In the first instance, we'd recommend contacting your lender and explaining the situation.

They might offer a repayment holiday, or look at extending the mortgage term, and there are also other options to reduce the costs until you return to work.

Another scenario is where a partner passes away, and you aren't able to cover the costs of a joint mortgage by yourself.

If one partner dies, even if you are in a joint mortgage, you won't necessarily be automatically responsible for all of the debt - although you will need to contact your lender if you'd like this to happen.

To take over 100% of the mortgage debt, your lender would need to assess your affordability, and agree to transfer the loan into your name.

In some cases, life insurance or savings can help, or there are other refinancing options available.

The Revolution team regularly works with clients who don't think they can afford any mortgage - this very often isn't the case, and there are many ways to get onto the property ladder.

Some of the schemes available include:

• Mortgages designed for people on low incomes.
• Applying to the Help to Buy Scheme.
• Looking at Shared Ownership options.

These are only some of the multiple options out there, so it's worthwhile getting in touch so we can advise on any other schemes you might be eligible for.