A pensioner is locked in a battle with her bank after she lost her house and possessions in a devastating house fire and is sleeping in her car.

Kristine Begg's home in Port Macquarie on the NSW Mid North Coast went up in flames on September 5, leaving her truly "heartbroken".

Ms Begg purchased the home 31 years ago and had spent decades renovating it in what she described to ACM as a "labour of love".

"My heart is shattered," she said.

Ms Begg had $94,000 left to pay the Commonwealth Bank on the property.

She said the bank has agreed to halt mortgage payments for two months, but the loan would still accrue interest.

Ms Begg said she had roughly $500 in her bank account, describing the bank's response as "callous" and "piecemeal".

She had made mortgage repayments by working three jo

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