Rent Allowance query

I am looking to find out our options.

We are considering a voluntary sale of house but bank have said they won't give us a letter of unsustainability and now trying to sort a 3 year interest only deal, which we are considering but am looking at all options.

On basis that the letter we need to apply for social housing isn't forthcoming and we sold thd house, this would seem as if we had voluntarily made ourselves homeless even though mortgage is unsustainable.

So if we sell up without letter we can't apply. Family could put us up for a little while and mother in law has just told us that if things get bad she will offer to pay rent for us for 6 to 9 months with a view of allowing us to get back on our feet. Would we be able to apply for rent allowance after 6 months if income is SW from start? Hoping one of us gets work and I am hoping to go back to college in Sept. With two small kids, both of us working given wage we would get and then childcare costs would not work out. So one of us needs to stay at home no matter where we live.

Just want to get on with our lives so help appreciated.

If neither of you is working and your only income is social welfare how can you pay interest only on your mortgage?

If the bank offer a 3 year interest only and you cannot pay, using the Reasonable living expenses from the ISI as a guide would you appeal it through the banks internal process?

Or you could stay in the house, pay nothing and wait for the bank to change their mind.

You must be able to show that you could afford the rent for the 6 months prior to applying for Rent Supplement - if you're both on a SW payment, or if someone else is paying the rent on your behalf, this might be difficult to do.

Thanks foradvice