Debt of £37,000, need help URGENTLY!

Jo4

Where is the best place to get a mortgage and what is a good rate? Although I am only 28 years old my hubbys mortgage is up in 3 to 6 years so I don't know about these things as we overpaid ours and never changed it.

Jo4

ads wrote:

We pay £320 ish on a repayment mortgage of £52000 over a 25 year term.

It all depends on how flexible their present mortgage arrangements are.

Hope this helps.

I agree with previous posts that your friends should really take a look at the website themselves as you can't do it all for them.

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I am hoping to get her to look at the site this week and show her how to use it. Then she can show him at the weekend.

Jo4

Tondella wrote:

try try try to get them to take a look at the debt free wannabe threads. There are loads of us over there, some with twice the debt you mention and less equity in the house. There are loads of suggestions for managing debt and if they feel confident enough to post then they will get loads of support. Psychologically, getting a consolidation loan often means that the person doesn't have to confront their debt and attitudes to money, and so more debt builds up again. Good luck, you're a good friend!

I will show her the debt free wannabe thread. I honestly don't know anyone in a worse situation than them but by what has been said here it seems people can be in a worse situation. I think I need to read that thread myself!!

Jo4

Johan wrote:

I estimate about £190 a month or so or thereabouts on top of their mortgage payments, see different lenders on line for a more accurate figures, I hope they will get it sorted.

Seems like they can afford the extra payments then!

Jo4

webmasterpolo wrote:

Where is the debt?

on credit cards?
store cards?
loans?
HP?

Do you know what any of the APR rates are for the different amounts?

The more info you can get from your friend and put into the site the more help we frantic MSEers can give :-).

Why don't you sit down with your friend and bring them to this site and help them post and maybe read some of Martins excellent articles. With you by their side it may be less daunting for them and you will be able to guide them around.

-Web

The debt that I am referring to is on credit cards, store cards and a loan. Their mortgage repayments and car payments are seperate to this. As far as I know when you have £37,000 in debt and can only afford £310 a month in repayments then remortgaging the house is the only way to go! I do stand to be corrected!

Jo4

I should point out they have money owing to Burtons and Dorothy Perkins cards but I do not know what interest this is at, do any of you know?

They have credit cards at the rate of 15.9% and 26%. She now know they need to attempt to remortgage their home, change their bank, reorganise their finances, cancel and cut up credit cards, pay of the loans, store cards and credit cards. She knows they need to watch the interest charges as I keep repeating it to her and she is trying to get the house remortgaged first but wants to know what is the best mortgage and what is the best rate.

At least she is making an effort. I hope this works out for them! Fingers crossed it all works out for them!

Rafter

If you look in the best buy tables in any newspaper you will find the current best deals.

Your friend needs to decide whether they want a fixed rate or a discounted rate and how long they want the mortgage to run. If they have been paying off their mortgage for say 5 years they only have 20 years to run. As standard, their new mortgage will also run for 25 years, but do they really want that or do they want to be debt free in say 20 years time preferably.

I suggest you send them to an independent financial advisor who can review their circumstances and advise the best option.

Good luck.

R.

Jo4

Rafter wrote:

If you look in the best buy tables in any newspaper you will find the current best deals.

Your friend needs to decide whether they want a fixed rate or a discounted rate and how long they want the mortgage to run. If they have been paying off their mortgage for say 5 years they only have 20 years to run. As standard, their new mortgage will also run for 25 years, but do they really want that or do they want to be debt free in say 20 years time preferably.

I suggest you send them to an independent financial advisor who can review their circumstances and advise the best option.

Good luck.

R.

Might look at moneysupermarket to see what it comes up with!

becky004

Not a hard and fast rule but according to my bank you pay around £60 per month for every 10k of mortgage you have so 40k should cost them £240 or near to that figure. HTH

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Martin put together a remortgage guide that might help decide which type of mortgage is the best for you / your friends.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1106239308,24268,

In my experience, as long as you go for a deal of some sort instead of just going with the Standard Variable Rate (SVR) you will make a big saving.

There are loads to chose from so it's worth putting together a short list of requirements and then trawling through to find the mortgage to suit.

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