I dont know where to start

rubydoiwannabee

Mine and OH situation is almost identical to yours financially speaking. We have 25K debt and a mortgage of just under £180K:eek: :eek: :eek: :eek:

We were considering a DMP but have decided to try and pull in our belts considerably and get a real handle on how much we are spending and how much we have coming in.

The last month or so since we started has been really hard, but we are feeling way more positive now that we understand our position completely and have a plan for dealing with it.

I am happy to talk to you anytime if you need support, feel free to private message me. It is quite a relief to see someone in a similar position.

angels11

Hi and thanks rubydoiwannabee

We have been on int only since January because they said we could do that for 6 months with no fees to pay, which we have done. That has recently come to and end and that is why we had to re-apply to stay on int only. I just dont understand why they wont let us stay on int only!!!

I know what you mean by saying it is a releif to see someone else in the same situation, i just dont know how its got to this. Well i do we moved house 2 years ago and been spending it all on doing the house up. The house is lovely but we have no bloody money now!!!!

Im still new to this posting lark, so when i get to know my way around it more i might know how to send you a private message. Ive been reading this sight and the forums for a couple of years and just finally plucked up the courage to write my own financial status down today XX

Merlot

Welcome to the board.

I am not understanding the mortgage thing either, how do they know you have debt? Have you told them? Do you bank with them? Are you on a fixed rate? is this why they won't have you on interest only for too long?

Can I ask who is the mortgage provider, you are not going to get into trouble by saying who they are? There are mortgage advisors on this board and others who just may know the reason why you cannot have interest only for a further 6 months.

I agree with the posters, please get advice from one of the debt charities, you need help and you need to now especially if we cannot sort out the mortgage thing.

What is important just know, is you and your unborn baby, and we will do all we can to help you.

Merlot.x.

angels11

I was asked to fill in a budget form for the mortgage to see if they would let us stay on interest only and i had to put in my incomings and out goings so thats how they know. ( I didnt think i have should have lied on a form like that). The mortgage is with the Skipton by the way.

Do you think a debt charity is the only way forward?

Merlot

No, you did the right thing by not lying to them. I would call the CCCS or National Debt Line on Monday for advice, you have enough to deal with in the next few months.

Are you on a fixed rate, is that why they won't allow you to continue interest only? I think you are going to find it difficult to re-mortgage with the amount of debt you have and the income. Pania knows best, its her field and she will get back to you once shes home, I'm sure of that.

pania

hon, if you like i'll give our business manager for the skipton a call tomorrow and ask a rhethorical "what if" question if you like? there are plenty of other lenders to look at out there that would allow you to go onto interest only

right now these cards. this is how i would do it, and how i think it would be recommended.

RBS CC, transfer 4500 onto halifax cc1 and the remainder onto a+l cc1.
close the account.
Barclays, transfer entire balance to a+l cc1
close the account.
Halifax cc2 transfer £700 to a+l cc1 and 3000 to a+l cc2
Transfer both storecards onto a+l cc1

cards should then look like this

Halifax cc1 3714.61
Halifax cc2 1641.53 pay off with car money as the highest cc
A+L cc1 4429.45
A+L cc2 3356.06
Virgin cc 4325.16

This serves 3 main purposes. 1) it would reduce the amount of available credit that you have as this will have a negative impact on your credit rating and can be viewed by mortgage lenders as beyond affordability as they may adopt a "what if you use all this credit" approach.
2) It minimses the amount of interest that you are paying on your outstanding debt and makes it appear less insurmountable.
3) It will reduce slightly your outgoings each month and allow you to tackle the debts in the order of "highest interest first".

Regarding the re-mortgage, are you able to obtain a copy of your credit report so that you can see what the situation is with your credit rating. that will then give us an idea of whether it is worth re-approaching skipton or approaching a new lender. It does surprise me TBH that skipton have taken this approach with you as they would usually rather that a borrower switches to interest only than to default on the mortgage. could you apply for the mortgage holiday to be able to get shot of some of this credit card debt?

Also i think you need to take a look at the situation when you are on maternity leave and how that will again affect your finances. it would be heartbreaking for you to do all this now just to end up tight again once you are on mat leave.

Don't forget other revenue sources such as mystery shopping, AQA (always possible when you have the bubs come along and a good source of additional income..) stick with us, you'll be fine. hugs xxx

rubydoiwannabee

angels11 wrote: »

Hi and thanks rubydoiwannabee

We have been on int only since January because they said we could do that for 6 months with no fees to pay, which we have done. That has recently come to and end and that is why we had to re-apply to stay on int only. I just dont understand why they wont let us stay on int only!!!

I know what you mean by saying it is a releif to see someone else in the same situation, i just dont know how its got to this. Well i do we moved house 2 years ago and been spending it all on doing the house up. The house is lovely but we have no bloody money now!!!!

Im still new to this posting lark, so when i get to know my way around it more i might know how to send you a private message. Ive been reading this sight and the forums for a couple of years and just finally plucked up the courage to write my own financial status down today XX

Hi,
same here we extended the house when we couldn't afford it, but managed to talk ourselves into doing it (didn't need much persausion!!). Anyway, the truth is it is the mortgage being so high and then the mountain on debt on top that has caused us into meltdown.

There is hope though, so hang on in there. The help from these boards has totally changed my frame of mind from despondent to really hopeful and positive that we are doing as much as we can. Then in a year if we have failed to make progress (or enough progress) we will reconsider the DMP route.

Try not to get stressed out, it won't help your pregnancy and that really is your priority. (not that I need to tell you that obviously!!)

LOL
xx

pania

just taken a quick look, interest only payments on a 180k mortgage with 55k equity would be between 973 and 1030 per month. much better by the sound of it!!!

(dependant on credit rating of course)

rubydoiwannabee

Merlot wrote: »

No, you did the right thing by not lying to them. I would call the CCCS or National Debt Line on Monday for advice, you have enough to deal with in the next few months.

Are you on a fixed rate, is that why they won't allow you to continue interest only? I think you are going to find it difficult to re-mortgage with the amount of debt you have and the income. Pania knows best, its her field and she will get back to you once shes home, I'm sure of that.

Hi Merlot
(sorry to hijack this thread) but thought I would say Hi because you helped me so much when I joined here and thought you might like to hear that we have just had one whole month of living in CR. We are now running an account without an OD and have set up a SO to pay the other one off. Everything has been paid, we have eaten well etc. etc. We have had our LBM and thanks to you and others have completely turned over a new leaf and our on the road to being debt free (albeit in about 4-5 years).

x

rheme

Check to see if you and your husband have life assurance cover with your jobs - should tell you in your contracts of employment.

If this is the case do you need more on top as you should have life cover on your mortgage - or is this what the life cover is?