Debt of £37,000, need help URGENTLY!

Jo4

ads wrote:

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.

Ads

They are going to look for a fixed rate repayment mortgage, now they need to see who is offering the best deal.

ads_2

Jo4, as well as the online comparisons there are also a couple of magazines ( 'What mortgage' is one of them ) that also show best buy tables. I looked through one of these before I last remotgaged.

Ads

Jo4

ads wrote:

Jo4, as well as the online comparisons there are also a couple of magazines ( 'What mortgage' is one of them ) that also show best buy tables. I looked through one of these before I last remotgaged.

Ads

THANKS for your help, I will pass on this information.

savvy

Hi Jo
Just moving you over to debt free wannabe board, hopefully you'll have even more advice from there.
savvy

Jo4

savvy wrote:

Hi Jo
Just moving you over to debt free wannabe board, hopefully you'll have even more advice from there.
savvy

OK, whatever you say Savy! As long as I can get these 2 on the straight and narrow again I don't mind!

Johan

If they have decided to go for a remortgage I think it's wise to go for a repayment mortgage.

That way they can be sure they you are not going to be hit with a shortfall if the endowment not covers the capital of the loan, no more loans to pay the shortfall :mad:

skintchick

I agree. Also, go for a 25-year term, but make sure you can overpay - the basic payments will be lower but they can still hammer the debt if they have extra cash.

Jo4

They have been approved in principle for the new mortgage!! :xmassmile I am happy for them but I do not want to get too excited yet just in case something goes wrong. She said that all the paperwork had to be done through the post so it will not be sorted until the new year. It's a pity that they will have it hanging over their heads during Christmas and the New Year but I suppose nothings bad that couldn't be worse.

I got their broadband connected for them today and it only costs £1.98 more a month than their dial up. Since they were using their mobiles while on the internet this will actually save them money as well as being more efficient.

She has asked me to help them sort their bank account next. Then the list goes on, it is a bit like Martins makeover!!

BTW when they get a mortgage approved for the extra amount, in case anything goes wrong with this one, what happens the cash? I want to make sure their credit cards, store cards and loans are all paid off so they can start with a clean slate.

THANKS for all the replies I could not have helped them without yous!! :A

Viz_2

I have no other advice other than what has already been said. But i'd like to say well done for helping these people out.
Hopefully they won't fall back into the debt trap again.

Johan

Well done my friend.

It's great that they are going to get things sorted now, when the credit cards are paid off ring or write to the card company and close the card accounts, it will help improve your friends credit record or credit rating!

Do not cut the cards up but cancel them! May be they can keep or get just one with a small limit say £500 at low APR if they can get it for emergencies only please! :xmassign: