What should I do?

kate_greetwell

Hello

Please could I ask for some assistance.....

I have a mortgage of £78k with Nationwide fixed rate which runs out later this month. I also have debts: a halifax loan of £16k, a credit card which I am up to the maximum limit of £5.5k and finally I am in the red with my over draft another £3k.

My parents out of the blue have offered to pay my mortage off when my deal ends later this month (I would then pay them monthly until I pay off my debt without having to pay bank interest). I imagine my parents would expect to see the deeds to my house after such a generous offer though!! I was planning to re-mortgage and pay off all my debts by increasing my mortgage from £78k to £102k, but now don't know what to do. I can't afford to pay my parents back monthly and pay the loan which is £280/month and the credit card which is £130/month plus the over draft fees.

Can I re-mortgage debts only? Is this the best way forward? £25k of debt is starting to take its toll, I seem to be paying off pence each month as I can only afford the minimum repayments.

Does any one have any suggestions on the best way forward?

Any help would be very much appreciated.

kate

UK007BullDog

Ask parents for the full amount you need, i.e. mortgage and other debts and then pay them back monthly?

If you have defaulted or been late with your other debs you might have to get a subprime mortgage which is usually more expensive if you were to remortgage. However it would make the payments lower if taken over 25 years, but you will pay more interest in the long run. But it could be affordable.

You might look if you could shift your credit card debt to 0% cards if possible.

I suggest you go to the debt wannabe board for more advice.

ema_o

I'm assuming from your post that your parents don't know about your other debts. In light of such a generous offer from them I would bite the bullet and tell them about it. It will always be horrid but it sounds like your parents want to help you out and they will be able to help best if they know the full story.
I expect you are paying far higher interest on your credit card and overdraft than on your mortgage, and maybe the same with your loan, so it might be better for you if your parents paid off those and some of your mortgage rather than all of your mortgage. Hopefully you would be then able to arrange a repayment plan you can afford.
I agree with BullDog go to the Debt board for some more advice, good luck!