Please help

RAS

Hi Daisy,

You need to start your own thread (hit the little button towards the top of the front page )and you may be better posting on the housing board.

savingholmes

daisyruno wrote: »

i have a problem. is my first time of using this site. i am a first time buyer, wanting to buy ba newbuild house, but the lenders have undervalued the property by 10000. the developers have refused to drop the price, but have offered to pay for another valuation with a new lender, i am confused because this is a higher rate than previous, bearing in mind i might loose my reservation money, surveyors fees and lawyer fees, do i count my lost and walkaway? or go through another credit checvk with a different lender? what happens to my credit rating with having different lenders carrying out checks on me. desperately seeking answers.

You would be better starting your own thread on this...

What you need to bear in mind is that in the first 2 years new houses often drop rather than increase in value even when there isn't a housing market crunch. Your lender is probably being realistic. On our first house we made no money on a brand new build for 5 years! Our next brand new build we made £20K. I would say the current housing market though is more like it was when we bought our first house - so personally I would err on the side of caution. Particularly if you are over-stretching yourself to buy. We borrowed £6K off relatives as they refused to lend us enough and things went down hill from there.....

rayday2

Helpus - please don't think about securing further debt you will force yourself into bankrupcy further down the line that way.

Have you considered running your own DMP or telling CCCS that you appreciate it will take 58 years at the current rate of payment but you are pretty sure in a couple of years time it will be a different story. My debt is only small comparatively but initially would take over 20 years to pay off - but I know my youngest will one day be older for me to work etc and the years will tumble off.

I run my own DMP with the help of the National debtline website, take a look at the site and think about tackling it I promise you that feeling of helplessness will disappear then because you are actively doing something.

Helpus_3

rayday2 wrote: »

Helpus - please don't think about securing further debt you will force yourself into bankrupcy further down the line that way.

Have you considered running your own DMP or telling CCCS that you appreciate it will take 58 years at the current rate of payment but you are pretty sure in a couple of years time it will be a different story. My debt is only small comparatively but initially would take over 20 years to pay off - but I know my youngest will one day be older for me to work etc and the years will tumble off.

I run my own DMP with the help of the National debtline website, take a look at the site and think about tackling it I promise you that feeling of helplessness will disappear then because you are actively doing something.

Seriously? Would be really be that bad? I wondered if it could work for some people. The idea was that if we could change the mortgage to over 35 years instead of 25 and try to borrow more if at all possible. Hopefully then in the next few years house prices will pick up again, we can sell the other house and change the mortgage on this again.

I think I can find £5000 to put towards th 40k now taking it to around 35 and the mortgage advisor thinks we could get around 25 thousand extra. If its not a good idea to borrow more on the mortgage, what do you think about increasingthe term of the mortgage to lower monthly repayments hopefully giving us more to throw at the £35,000 debt?

Helpus_3

Oh also, could we still go on a DMP having increased the mortgage term and the give them as much as possible? Would this still give us bad credit history in the future? One more thing, do you have to give equally to the companies involved?

rayday2

I would consider stretching the term of your mortgage but not taking out further borrowing to service debts. Once you secure your debt and if things do get worse you are stuck with the option of selling or bankrupcy.

A DMP you work out payments pro rata so everyone gets the same treatment but the payments are different, if one loan for example is 20% of the total you owe then they get 20% of your monthly amount to pay them.

I am probably not the best to take advice off re mortgages etc as I am a "bad" creditor, I did secure a loan on my house and still ended up in a pickle! Never again though I want to keep my secured lending as small as possible and pay the none secured what I can afford so I can live.

oilrag

hi helpus

one thing to think about is the future in the next 3-5 years

i work as a mortgage consultant inside a big estate agency chain. theres obviously been a steep drop in the housing market at the moment but the talk is that this is likely to turn around in the next 2-3 years. of course this isnt garunteed and it could be sooner or later that that.

If however things do start to go back to how they were a couple of years ago with decent mortgage deals and house prices increasing you will be in a much better position. what goes up must come down and vice versa so hopefully both your properties will rise in value at that point meaning more equity and better mortgage deals for you and you will be glad you have kept them both. just hope the other gets rented out for as long as possible.

you could possibly wait until the times right and if you sell one prop use the equity to clear those debts and any extra off the current mortgage. hopefully your dfd would drop a huge amount from the 58 years quote.

all this isnt garunteed of course but its what i would be looking at in your position. get another job or more hours just for a few years. might not ben great fun but sounds like it needs to be done. or when kids go back to school get more work in the daytime maybe?

good luck

System

Great shout Ray, a self administered DMP can be done and like Ray says Nationaldebtline will be on hand to assist and you will feel more positive when you start taking control of your finances again; that alone will be enough to kick start your life and push you in the right direction. Len

rustybucket

I think this 58 years thing you need to let that go over your head..........

Don't borrow more on your properties. Possibly interest only for the time being?

Have you missed credit card payments or are your creditors not aware of your problem yet, in other words are you still robbing Peter to pay Paul? I did this for ages.

Speak to payplan as well as CCCS, also a charity company. They may have a different spin on this.

It's a horrid feeling, embarrassing, lonely and the feeling of despair that you are going through. Except it's not just you it's many many others so you're not alone.

You are dealing, and it will get bumpier but it will get better........

RAS

Hi

if you borrow more, you will not get round to addressing the reaosns behind your current situation and you will rapidlly get into a worse situation. Thhis board is littered with people who have borrow more either as a mortgage or a secured laon to pay of unsecured debt and then got into even worse trouble.

Remember if the worst came to the worst, unsecured debt is cleared by bankruptcy, secured debt is not.

You need to tackle the root cause not the symptom.