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frannymatt

Hello, just looking for a bit of advice please. Long winded post ahead!

I'm self-employed and have been since 1997. All was going well and I had net profits of £80K up to 2007 when I went down to £11K as I was on maternity leave and then came back part time. My net profit increased to £25K in the year ending 2008 and then I went on maternity leave again for a shorter period of time before returning to full time work in March 2009. My net profit for year ending 2009 was £27K. I have not yet completed my accounts for the year ending 2010, but total income was £71K and once the main expenses have come off, net profit sits at £59K so things are looking up. Over the same time frame my husband's salary has gone up from £45K to £85K, so what we've lost in my income, we have now almost gained in his. However, we relied too heavily on credit cards whilst I was on maternity leave and our combined debt in this regard is £73K. We have a mortgage for £374K and we want to move to a house costing £460K. We want to port our mortgage, as we are on a fixed rate and will pay £8K in early redemption penalties if we redeem it, and as the rate is 5.45% fixed until December 2011, it's not a bad deal. By moving, we would not need any additional borrowing (we're selling for £490K) but we would not be reducing our borrowing either, as the excess will be used for estate agent's fees, stamp duty, solicitors fees and moving costs, leaving us about £5K, which we can plough into the credit card debt. Our stumbling block is that our mortgage provider will not simply port the mortgage, we need to reapply, and having done that, they have refused our mortgage on the grounds of affordability. My business account relations manager at HSBC has been really supportive and has supported our application, as our move will take us closer to family, and will save us about £800 per month in childcare costs. Also, she can see the money coming into my business account, so knows I'm back on my feet.

I'm not sure what my options are. I know the bank has to be seen to be a responsible lender, but they are refusing me a mortgage that I am currently affording, and that I have never defaulted on. I have had loans with HSBC for professional purposes and have never defaulted on these. In fact, I have never defaulted on anything, and on the rare occasions I have missed a credit card payment, it has been on taking out a new card and failing to set up a direct debit in time. I have asked my bank whether they will seek to repossess us on the basis that we cannot apparently afford the mortgage we have had since 1999, but they say this will not happen - so why can't they just secure it against another address? I'm left 200 miles away from family, with childcare costs that are so exorbitant I have no ability to pay any more than the minimum payment on the credit cards. HSBC have said they want all the credit cards paid off before they will consider my application further, but then they will not be able to guarantee that our application will be successful even if we do that - and how we're expected to suddenly find £73K I don't know.

Anyway, longwinded post over, and sorry for 'thinking out loud' but I can't concentrate on anything else and don't know what my options are. Any words of wisdom would be greatly appreciated.

Many thanks.

CCCS_Sarah

frannymatt wrote: »

Hello, just looking for a bit of advice please. Long winded post ahead!

I'm self-employed and have been since 1997. All was going well and I had net profits of £80K up to 2007 when I went down to £11K as I was on maternity leave and then came back part time. My net profit increased to £25K in the year ending 2008 and then I went on maternity leave again for a shorter period of time before returning to full time work in March 2009. My net profit for year ending 2009 was £27K. I have not yet completed my accounts for the year ending 2010, but total income was £71K and once the main expenses have come off, net profit sits at £59K so things are looking up. Over the same time frame my husband's salary has gone up from £45K to £85K, so what we've lost in my income, we have now almost gained in his. However, we relied too heavily on credit cards whilst I was on maternity leave and our combined debt in this regard is £73K. We have a mortgage for £374K and we want to move to a house costing £460K. We want to port our mortgage, as we are on a fixed rate and will pay £8K in early redemption penalties if we redeem it, and as the rate is 5.45% fixed until December 2011, it's not a bad deal. By moving, we would not need any additional borrowing (we're selling for £490K) but we would not be reducing our borrowing either, as the excess will be used for estate agent's fees, stamp duty, solicitors fees and moving costs, leaving us about £5K, which we can plough into the credit card debt. Our stumbling block is that our mortgage provider will not simply port the mortgage, we need to reapply, and having done that, they have refused our mortgage on the grounds of affordability. My business account relations manager at HSBC has been really supportive and has supported our application, as our move will take us closer to family, and will save us about £800 per month in childcare costs. Also, she can see the money coming into my business account, so knows I'm back on my feet.

I'm not sure what my options are. I know the bank has to be seen to be a responsible lender, but they are refusing me a mortgage that I am currently affording, and that I have never defaulted on. I have had loans with HSBC for professional purposes and have never defaulted on these. In fact, I have never defaulted on anything, and on the rare occasions I have missed a credit card payment, it has been on taking out a new card and failing to set up a direct debit in time. I have asked my bank whether they will seek to repossess us on the basis that we cannot apparently afford the mortgage we have had since 1999, but they say this will not happen - so why can't they just secure it against another address? I'm left 200 miles away from family, with childcare costs that are so exorbitant I have no ability to pay any more than the minimum payment on the credit cards. HSBC have said they want all the credit cards paid off before they will consider my application further, but then they will not be able to guarantee that our application will be successful even if we do that - and how we're expected to suddenly find £73K I don't know.

Anyway, longwinded post over, and sorry for 'thinking out loud' but I can't concentrate on anything else and don't know what my options are. Any words of wisdom would be greatly appreciated.

Many thanks.

Hello,

Thank you for your message.

I think the best thing would be to have an appointment so we can take a look at your budget. We would then be able to look at your options. With regards the mortgage side of things we could refer you to a whole of the market broker to see if they can help out there.

If you would like an appointment, please call 0800 138 1111

Sarah

CCCS_Sarah

nobodysdriving wrote: »

THank you Sarah,
basically you confirmed my 'fears', even though it was the tax office fault that my tax was underpaid month in and month out for 2 years they can still take priority over my other debts (I don't think it's fair, if they made a mistake they should not have priority, I can understand if I made the mistake...anyway....).
I will have to wait and see what we settle on.
I really don't think the £50 a month my 14 year old gets and one video game every other month is non essential. If I didn't give him this he may be loitering in the shopping centres, shoplifting and doing drugs! if the video game and the pocket money keeps him happy (so he can go to cinema etc with friends) then he will stay out of trouble in my view, I can now see how many teenagers end up loitering and getting into trouble (especially the ones who live in towns....like us). Sorry I am going off topic here as this is not something you personally decided yourself, it's just what's accepted in 'debt-land'. I am just SO bitter when this is happening NOT BECAUSE OF MY FAULT! even when you think you are doing the right thing and being a law abiding citizen, working 6 days a week to pay back what you borrowed, someone can happily knock on your door and force you to go bankrupt as the tax office demands more than £30 I WILL GO BANKRUPT. I dont have to work 6 days a week so if they make me default on my debts and force me to face a DMP then I WILL STOP working overtime and on my basic pay I can go bankrupt no problem!

rant over, sorry had to get it off my chest

thank you for your kind advice, I DO appreciate it, and CCCS will hear from me no doubt about bankruptcy if tax office is being 'mean to me'

PS tax aid refuses to speak to me as I EARN TOO MUCH MONEY :rotfl: (what a laugh!)

Fingers crossed that they will accept your offer, let me know how you get on.

Sarah

sheffowl185

bought a car through ucan/carcraft/ welcome finance in march07 over 4 years. was and still am self employed (sub contractor construction industry), was due to pay installment on 1st april (!!!!????) but have had no work for over a month to speak of , and very little on the horizon. as a result , was unable to pay .contacted welcome before payment date and deferred until mid april which is fast approaching and still no money coming in. i really dont want a default on my account , but if work situation doesnt improve soon , i cant afford the car! i havemet every payment til april without fail. what are my options? can i terminate the agreement as i have paid over half? is it wise?or should i try to reduce the payments til i can afford the full amount again? any help much appreciated. welcome aint so welcoming at the moment

CCCS_Sarah

sheffowl185 wrote: »

bought a car through ucan/carcraft/ welcome finance in march07 over 4 years. was and still am self employed (sub contractor construction industry), was due to pay installment on 1st april (!!!!????) but have had no work for over a month to speak of , and very little on the horizon. as a result , was unable to pay .contacted welcome before payment date and deferred until mid april which is fast approaching and still no money coming in. i really dont want a default on my account , but if work situation doesnt improve soon , i cant afford the car! i havemet every payment til april without fail. what are my options? can i terminate the agreement as i have paid over half? is it wise?or should i try to reduce the payments til i can afford the full amount again? any help much appreciated. welcome aint so welcoming at the moment

You would be able to send them the following letter to voluntary terminate the agreement. I would recommend that you send it recorded delivery so that you have proof of postage.

You are able to send the letter before the half way mark and then just be liable for the difference plus costs.

If you would like to discuss this in more detail you can call our helpline free on 0800 138 1111.

Sarah

Example letter – hire purchase termination of agreement

From:
Name:
Address:
Postcode:
Date:
To:
Creditor’s Name:
Account/Agreement No: (Car Make/Model and Registration Number)

VOLUNTARY TERMINATION OF AGREEMENT

Dear Sir/Madam
I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the Consumer Credit Act 1974.
I understand that I will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974.
Please send me details of how the vehicle can be returned to you.
Please confirm receipt of this request by telephone to me on (your telephone number).
Yours faithfully
(Signature)
(Print name)

sheffowl185

would this mean i still have to pay the outstanding balances on both car and that useless ppi? or just part of it?

CCCS_Sarah

sheffowl185 wrote: »

would this mean i still have to pay the outstanding balances on both car and that useless ppi? or just part of it?

When you VT an agreement you are liable for 50% of the balance less any deposit or payments you have made. You should be able to cancel the insurance.

sheffowl185

thanks , taking everything in serious consideration!

mazza25

Hi
I have a question about trust deeds. I have just spoken to the national debt helpline who have advised my husband may have a complaint about his, as it seems the amount he has paid could be well in excess of the debt (possibly £3000 more!)
My question is about our house. The trust deed went through after we applied and were approved for a mortgage, but before we owned our house.
A little research is showing that we might now not actually own our house? The trust deed belongs only to my husband but the house is jointly mortgaged. Can you advise on this?

I'm getting pretty scared.

jamesd

Worried196, phone the court to check what's happening and whether anything more is needed. The clerks there are generally helpful.

One month's notice is standard for a statutory periodic tenancy and you gave notice, though it may not have been on a correct date so there could be a few days more if they pushed it. Not months or years more. Their maladministration isn't enough to create liability for you. You should preserve any records you have of rent payments at the new place to document that if they have so badly messed up their records that they can't find your notice. It also seems that they should be aware that they had placed a steel security door on the place that barred you from gaining access even if you had wanted to, something that would be completely unacceptable (landlord harassment) if they did recognise that you had a tenancy.

They effectively have two choices:

1. claim that they are a landlord that committed a criminal offence in the form of harassment and illegal eviction.
2. admit that you'd terminated the tenancy.

Be sure that you do continue to respond to any communication about this and turn up in court if required, since not doing so could unnecessarily cost you that £3,000.