Stuck!!!

emmao_3

Hi there

Im just seeking advise on a remortgage? My husband and myself are in 30,000 worth of debt which is beng managed under debt scheme we are paying a fortune on our mortgage and we are in arrears could anyone recommend a lender who can help us reduce our debts and mortgage payments. Im pregnant and due to expect in march and my husbands salary will not cover the bulk of our bills we are considering voluntary repossesion and bankruptcy!!! please help

_Andy_

Hi

How many payments have you missed in the last 12 months?

Also what's (realistically) the property value and how much do you owe on the mortgage?

You may find if you switch mortgage lender you'll get a higher interest rate than what you're on at the moment because of the arrears.

koexelek

Andy is right.

The way the market is at the moment, I doubt if any new lender would take you on without charging you a horrendous interest rate.
If the arrears are current/recent, I don't think any new lender will help at all.

all I can suggest is that you try and negotiate some kind of repayment schedule with the present lender

emmao_3

we have missed to payments last december but agreed to overpay which we have managed up untill now! we could'nt meet the full payment but made a partial payment! Our mortgage is £130000 and valued the start this year at £145000 its our DMP affecting us bankruptcy the only answer but cant lose the house we have no secured debts

_Andy_

Which lender are you with at the moment? Could you possibly extend the term (if you're on capital repayment) or (again if you're on CR already) switch to interest only ?

emmao_3

we arewith morgage express, we are on a fixed rate, till march next year we cant switch or we will get a redepmtion fee, just found out!!!!

_Andy_

Even if you did I'd guarantee the rate would be higher. Any chance of what I suggested above (reducing term/changing to interest only)?

summermummy

If you are paying repayments at the moment - pay interest only until the situation improves. Bear in mind you will not be paying down any capital while in the interest only period - but better to save your house now.

Could your husband increase his income by taking on a second job? There are lots of suggestions on the site for increasing income.

Are you entitled to any benefits? You may qualify for some tax credits or housing benefits. Check the government website www.hmrc.gov.uk/taxcredits. Tell your local CAB - they may be able to provide further help.

Keep your lender up to date with your situation.

arkie

Get rid of the DMP, enter an IVA or if you have no equity left in the property go bankrupt. Too many people enter a DMP thinking that it is better than an IVA, WRONG a DMP will go alot longer than you think and all the time you are it 10-15 years you WILL have bad credit. Enter an IVA and your credit rating will be back to normal in 6 years.

getmore4less

emmao wrote: »

we have missed to payments last december but agreed to overpay which we have managed up untill now! we could'nt meet the full payment but made a partial payment! Our mortgage is £130000 and valued the start this year at £145000 its our DMP affecting us bankruptcy the only answer but cant lose the house we have no secured debts

If you cannot afford the house you cannot keep it, eventualy someone will want there money back.

With bankrupsy, if prices drop enough so you have no equity then you may be able to keep the mortgage and the house if you can afford it, with equity then you have to sell or find someone to buy out the equity, does not matter if the debt are secure or not they get the equity.

This is not realy a mortgage issue it is a debt issue. I would seek proper advice in that area could try Debt free wanabee here, or CAB.