Desperate for Advice - Please help

darren74

Hi

Was made redundant yesterday and was in the process of looking for a new mortgage deal as ours runs out in August and will revert to the Halifax current rate, in the run up to yesterdays events. We were looking to take as much out of our house to pay off our wedding as we put it on 0% credit card (11k in total) but now this has happened.

The other half is still working and is on a good wage but we need to know what we can do? We have a loan attached to the house with Picture (I know, I know) for around 10k.

Can anyone suggest anything that we can do now? We don't want to sell up but may have to if I can't land work within 6 weeks.

I know its messy, but any help would be appreciated.

Thanks.

[Deleted User]

Your priority is the mortgage and continuing to pay it - not the credit card.

It would seem that many mortgage deals are drying up now and many people are opting to stay put for a while with existing lenders on a standard variable rate as a lot of new deals have very harsh fees.

Find out what your new mortgage payments will be going up to and see if you can manage them - if you think you will not be able to afford them you need to look at ways to ensure you can afford them. What could you cut back on/cut out?

Meanwhile - it is still worth looking for a decent mortgage deal but don't forget to factor in things like the fees, some of which are likely to be added to your loan and others you may have to pay up front.

Regarding the credit card - continue with your 0% deal and continue to shuffle it round other 0% deals as they get near the end.

As you have just lost one income there is nothing wrong with just paying the minimum monthly payment on the credit card until you get back into work. At this stage it's about minimising your outgoings temporarily.

Do not be temepted to take out further loans or put anything on your mortgage. Even if you default on the credit card your house is safe.

You MUST prioritise your bills and debt - mortgage and council tax first, any court fines and then utilities and other essentials.

Credit cards and unsecured loans are way down the list.

darren74

Deleted_User wrote: »

Your priority is the mortgage and continuing to pay it - not the credit card.

It would seem that many mortgage deals are drying up now and many people are opting to stay put for a while with existing lenders on a standard variable rate as a lot of new deals have very harsh fees.

Find out what your new mortgage payments will be going up to and see if you can manage them - if you think you will not be able to afford them you need to look at ways to ensure you can afford them. What could you cut back on/cut out?

Meanwhile - it is still worth looking for a decent mortgage deal but don't forget to factor in things like the fees, some of which are likely to be added to your loan and others you may have to pay up front.

Regarding the credit card - continue with your 0% deal and continue to shuffle it round other 0% deals as they get near the end.

As you have just lost one income there is nothing wrong with just paying the minimum monthly payment on the credit card until you get back into work. At this stage it's about minimising your outgoings temporarily.

Do not be temepted to take out further loans or put anything on your mortgage. Even if you default on the credit card your house is safe.

You MUST prioritise your bills and debt - mortgage and council tax first, any court fines and then utilities and other essentials.

Credit cards and unsecured loans are way down the list.

Thanks for the swift reply

We know the mortgage payment will be £640 per month, so it's not so bad as I've got £600 per month ASU cover and then there is the little that you get off the government while I search for new work, then the Mrs' wage. It's the picture loan secured against the house we're worried about.

So, in your opinion, should we contact the credit card people and tell them the situation? I hate the idea of being unable to pay the bills as I've worked since leaving school at age 16 and not missed any payments on anything I've bought, etc.

The only way we can save on anything else is to pay what we can off in full now, i.e. car insurance, virgin tv, etc. I'll look into that.

Hate the idea of losing what we've worked so hard for.

UK007BullDog

Get rid of anything you dont need. take car off the road and use public transport if possible, then you save on fuel and insurance.
Shop very frugal and make a budget. Then hit the internet and pavement looking for a job. Anything will do as long as the money comes in.

You did not say which lender you are with nor the amount but look what deals they will offer you as you might not have to prove employment or wageslips. you definately do not want to be on their SVR.

darren74

UK007BullDog wrote: »

Get rid of anything you dont need. take car off the road and use public transport if possible, then you save on fuel and insurance.
Shop very frugal and make a budget. Then hit the internet and pavement looking for a job. Anything will do as long as the money comes in.

You did not say which lender you are with nor the amount but look what deals they will offer you as you might not have to prove employment or wageslips. you definately do not want to be on their SVR.

Sorry. We're with the Halifax, our deal is just ending on Aug 1st and will go to variable rate. The amount owing on the mortgage is 103,670 and the house value is 122,500.

Thanks folks, any more advice would be great.

beecher

Have a look here

http://www.halifax.co.uk/mortgages/newdeal.asp

to see what Halifax deals are available - you're likely to find something which works out cheaper than the variable rate, even with fees.

The 'Halifax mortgage calculator' at the bottom is good as it tells you how much you'd pay and you can play around with the different fixed and tracker rates.

£640 doesn't sound very much for that size of mortgage - what rate did you work out that for, and what term?

happybroker

What does the OH earn?

It's good going if you managed to get away with not having some sort of asu with picture...that's where they make the money after all, double check your paper work with them.

Interest only with Halifax for a short period may be an option also, it's worth doing everything you can to keep clean as the sub prime market is shot to bits just now.

darren74

happybroker wrote: »

What does the OH earn?

It's good going if you managed to get away with not having some sort of asu with picture...that's where they make the money after all, double check your paper work with them.

Interest only with Halifax for a short period may be an option also, it's worth doing everything you can to keep clean as the sub prime market is shot to bits just now.

The other half brings home £1253 per month but is in line for a hefty raise as she's just been made a manager at her place of work. Yet tbc how much it will raise by just yet though.

good point on the asu with picture, I'll look into that today.

it sounds daft but we have gone to interest only as I also lost my job last May after 5 years consecutive work as a graphic designer. same has happened again yesterday due to lack of work incoming.

i may need to have a re-think of career

darren74

beecher wrote: »

Have a look here

http://www.halifax.co.uk/mortgages/newdeal.asp

to see what Halifax deals are available - you're likely to find something which works out cheaper than the variable rate, even with fees.

The 'Halifax mortgage calculator' at the bottom is good as it tells you how much you'd pay and you can play around with the different fixed and tracker rates.

£640 doesn't sound very much for that size of mortgage - what rate did you work out that for, and what term?

As I mentioned below, we're on interest only at the moment, hence the low price.

the problem being, I will have to disclose to Halifax my redundancy (I guess?) and they may not be willing to deal with that in mind.

UK007BullDog

If you tell them they might keep you on SVR and will not offer a new deal unless your income improves. Its crazy and mean, but that is what they call treating customers fairly.

darren74

UK007BullDog wrote: »

If you tell them they might keep you on SVR and will not offer a new deal unless your income improves. Its crazy and mean, but that is what they call treating customers fairly.

Oh I'm aware of Halifax's practice of "Treating customers fairly" having been privvy to their heavy handed tactics first hand