Help really Worried we are going to go under!

imcognito

Sorry - Wannabespendthrift said the following:

"FWIW you need to do something before your two years are up with the remortgage - I can't see your hubby getting approval for a new deal on just his salary. Going BR will affect any possible re-mortgage rates also, assuming the OR didn't make you sell the house."

My questions were:

What can we do now whilst we are still locked in our deal (2 years left)?

Will they really not give him (my DH) a mortgage based on his salary if he has paid the current mortgage on his own for over 2.5 years - providing of course we get through this mess - 2 years down the line?

Thanks hope that makes it slightly clearer, will ask over on moprtgages board too!

imcognito

Merlot wrote: »

if you wanted out of the current mortgage deal, then you would have to repay the redemption penalty.

As regards to a new deal in two years time, it used to be as much as 6 times the salary, but in this climate, it is difficult to say what is going to happen in 2 years time, you could of course use an financial advisor who could do a self cert mortgage, but these are generally more expensive, and at this moment in time the sub prime market is suffering, but who knows what will happen in 2 years time.

Thanks, if we have to pay the redemption we will stick it out as will cost 13K i believe to get out! Ouch!

I guess noone can forsee the future !

Merlot

It is too far in the future to be thinking about the new mortgage, you have a baby on the way and you need to deal with the issue of reducing your spending and curbing in your soa for the moment.

No-one, not even Gordon Brown or Alistar Darling really knows what is going to happen in two years time. It is awaiting game for many of us unfortunately.

Merlot.x.

wannabespendthrift

Hi, as far as I know if you sold up within the two years and left the mortgage early the mortgage people would levy the redemption penalty. they are not likely to waive it for any reason.

I don't think the fact your OH has been paying this mortgage on his own for 2.5 years by the time your new deal comes up will carry much truck with whoever you apply for a mortgage to - they'll want to a certain amount of room between net salary and monthly mortgage payment regardless. you're running at about 50% now is that right?

Anyway, what has been said on this thread is right, one problem at a time. deal with what you are facing today and worry about two years down the road when it comes. xx

Merlot

imcognito, when the time is here to get a remortgage, take a look at Martins advice, he recommends a couple of companies who will check the market for you, London and county is one (highly recommended by me, I used them and they are fantastic) and another is Charcoal.

In_Search_Of_Me

We've pretty much all felt stupid if we've got into huge debt...I was sooo ashamed when I realised that I owed 37,000, not including mort! I can understand the issue with freecycle and can now see it from both sides. At the start I was such a snob (although couldnt see it at the time!) and refused to shop in lidl/aldi...not now! I love picking up bargains at car boot sales, love the generosity of freecycle and am open about my debt. I dont regret it for a minute - have made good friends on here, discovered me in the process - I now love making things that are cheap but made with love and am currently sewing the end of a quilt I've made for a friends baby...she'll love it cos she knows how much love and time have gone into it. While its hard now you will look back and realise what a precious thing this lightbulb is - you may loose friends, will definately have to change your outook but hopefully it will make you realise what is actually important and precious in life!

wheretheresawill

From what I can see you need to be saving during the months your hubbie makes the extra cash, are you doing this? or spending it? The basic he earns should be what you aim to get your monthly expenses to add up to, any extra is a bonus to be put towards your debts. It may mean changing your lifestyle a bit

imcognito

In_Search_Of_Me wrote: »

We've pretty much all felt stupid if we've got into huge debt...I was sooo ashamed when I realised that I owed 37,000, not including mort! I can understand the issue with freecycle and can now see it from both sides. At the start I was such a snob (although couldnt see it at the time!) and refused to shop in lidl/aldi...not now! I love picking up bargains at car boot sales, love the generosity of freecycle and am open about my debt. I dont regret it for a minute - have made good friends on here, discovered me in the process - I now love making things that are cheap but made with love and am currently sewing the end of a quilt I've made for a friends baby...she'll love it cos she knows how much love and time have gone into it. While its hard now you will look back and realise what a precious thing this lightbulb is - you may loose friends, will definately have to change your outook but hopefully it will make you realise what is actually important and precious in life!

yep stupid!!! am gonna get exact figures for debt tonight and log my LBM!!!!

Am also going to get dh to read this thread in a minute (hes bathing the boys as we speak) so he can see for himslef! Maybe when he sees 20+ people telling us we are stu[id he might agree! :d wonder if he will reply??

We will get there! I am positive!

beckseven

Hi imcognito. Congratulations on your pregnancy-I'm due my second baby on the 24th January and know how scary it can be when you are in a financially dicey situation with kids already and a baby on the way. However you will find a way out of this. It will be hard but you will be able to do it. At the moment I am hacking my dishwasher tablets in half with a knife to make them last till payday and I wouldn't have DREAMED of doing that three years ago and I now buy Asda smart price sausages which I would have shuddered at 6months ago! BTW I saw that the chef Nigel Slater gave the smart price sausages a good review recently! You are doing really well with your shopping being only £200 a month-puts me to shame. I'm no expert at mortgages and DMP etc but other people on the forum are. You will find a way out of this and you are not stupid-like the rest of us on here with debts you learn from your mistakes-I should know-some of my debts came from splurging on £165 Coast dresses and spray tans when a top shop dress and bronzing powder would have made me look just as good-now I can't even afford to go to Primark!. Good luck and stay positive and keep us all posted with how you are doing. I know it is hard but try not to get stressed as there will be a way forward for you and the most important thing is that you and your family are healthy.

lucielle

Hope you manage to turn things around.
L