Any Advice please

dontknowwhattodo_3

I have also received a letter from UBS offering me 5% back and also they would not charge me the penalty for transferring mortgage - I have had my mortgage with them for just over 12 months and was on a fixed rate for 2 years - since receiving this letter I have tried to remortgage with Halifax and they said they had never heard of this before - they checked my details and came up with an offer of 63000 pounds to remortgage but need 86000 - because of my credit card debts of around 20,000 they could not help because my credit score is on the low side - don't know where to go now as I have tried a few telephone calls with mortgage advisers - one HSBC said they couldn't help and offered me nothing - can anybody else advise what is the best thing for me to do - I am feeling desperate now in case I lose everything.

My annual salary with overtime is 24,000

My present mortgage is 500 per month
my credit card debts are taking most of my money trying to pay off the minimum payments and that is why I am really struggling - I am now actually living off my credit cards not having any money left -

My house was valued at 110,000 12 months ago but is now only worth about 99,000 the mortgage outstanding at the moment is 91,000.

I am so desperate have even thought about going bankrupt but would have nowhere to go or know what consequences I would face with my job etc as I handle cash with my job and not sure if bankruptcy would affect that - I know this would be a last resort but just don't know what to do

Would really appreciate any advice on remortgaging with a low credit score - I have never been arrears with my mortgage payments and only had a few late payments on my credits cards - have no CCJs

~Beanie~

dontknowwhattodo wrote: »

they checked my details and came up with an offer of 63000 pounds to remortgage but need 86000

My house was valued at 110,000 12 months ago but is now only worth about 99,000 the mortgage outstanding at the moment is 91,000.

If your outstanding mortgage is 91,000, why do you only need to remortgage for 86,000?

I think you will struggle to get a decent deal with £20K of debt and missed payments on your file.

I have just had a quick look at your previous posts on the Debt Free Wanabee baord, did you contact CCCS or the CAB as suggested? I really think you need to speak to someone ASAP.

dontknowwhattodo_3

Thanks Beanie - the reason I want to remortgage for 86000 is due to the money cashback I would get from UBS I was going to offset that against the amount borrowed but not sure if that is the correct way to go.

As regards the CCCS and CAB - I filled in the the details on the CCCS form and the response back was I needed to look at my outgoings as I had no monies left over to pay any creditors so have gone over and over the figures to see if I can see what I can do but not found an answer - with regards to the CAB not sure if they can help - as you say I do need help asap as I am going to lose everything and I have tried so so hard to get help - I have asked for consolidation loans so my outgoings would be less but everywhere is a brick wall and the answer is no all the time and they say because my credit score is low yet loads of companies ring me who I have never heard from and these are cold callers - where they get my details from I don't know but the interest rates they offer are crazy and I would be worse off all round - I am seriously thinking of just leaving everything and walking away as the stress is to much to cope with but when I received this letter from UBS it gave me a bit of hope.

rjm2k1

dontknowwhattodo wrote: »

Thanks Beanie - the reason I want to remortgage for 86000 is due to the money cashback I would get from UBS I was going to offset that against the amount borrowed but not sure if that is the correct way to go.

As regards the CCCS and CAB - I filled in the the details on the CCCS form and the response back was I needed to look at my outgoings as I had no monies left over to pay any creditors so have gone over and over the figures to see if I can see what I can do but not found an answer - with regards to the CAB not sure if they can help - as you say I do need help asap as I am going to lose everything and I have tried so so hard to get help - I have asked for consolidation loans so my outgoings would be less but everywhere is a brick wall and the answer is no all the time and they say because my credit score is low yet loads of companies ring me who I have never heard from and these are cold callers - where they get my details from I don't know but the interest rates they offer are crazy and I would be worse off all round - I am seriously thinking of just leaving everything and walking away as the stress is to much to cope with but when I received this letter from UBS it gave me a bit of hope.

Lenders are desperate to get rid of bad debt, this is why you have been made such an offer by UBS. Some BTL borrowers are getting offers of 15% back! You might be able to get more than 5% if you ask but it won't solve the problem of finding a mortgage elsewhere.

lynnexxxo

The mortgage company might want to get rid of you but you don't have to go! I'd imagine, paying 500 per month you are probably on interest only deal at about 6.5% ? I can't imagine in the current climate with your level of debt you will be able to get anything better.

The good news is you have still got nearly a year before the mortgage company can start charging you a high svr. In this year though you have got to sort out some of your debt. I'd suggest posting a statement of affairs on the debt free wannabe board and the helpful folks there can suggest ways you can save money. Could you get a lodger, get extra hours at work, cut back on sky/car expenses going out extra. Some people (respect to them, don't know if i could manage) feed a family of four on £20 a week!

Good luck.

dontknowwhattodo_3

thanks lyne and yes it is true what you say about not having to pay more until next year so I suppose I have got that to be grateful for but it was just receiving that letter which gave me a bit of hope - if I could consolidate all my credit card debts to one payment it would be ok as I may then be able to get a higher credit score by next year but nobody will entertain a loan to cover them because of my credit score. I am paying all my money at the moment on paying these off but it doesn't make any difference as they just keep adding interest on - I did a SOA but it comes out with all the payments that I make to the credit card companies it doesn't leave any money left - the only way I could cut down is my payments to the credit cards but that would not work because the bills will go even higher.

I have cut down all my outgoings for basics etc and am trying to get a lodger by advertising - I put my name down for overtime all the time so hopefully will be able to up my weekly wage