What do I do?

jaspy412

Hi all this is my second only post and I am desperate with what to do: -
currently I have a limited company and earn approximately 3K per month, my 5 yr fixed rate mortgage is now up and the Halifax have upped this from the 5% up to their standard variable of nearly 8% taking payments from around £700 of nearly 1K per month. My house is currently up for sale for 175K but no interest in buying, but the problem is i have a first plus loan for £570 per month whereby the Halifax wont re mortgage me as I don't have 3 years books showing the earnings I have now, I owe a mortgage of 117K with this added to the 1st + loan that was 60k and after 3 years payment is still 60k I am in negative equity if i sell, work has gone quiet same as alot of us and this lot added to the existing debts below leaves me wondering what to do.
p.s. my wife has no income and we have a one and a two year old child
the below are between my wife and I owe: -
credit cards £15K
student loans £14K
wifes car £9K
overdrafts £2K
my car on a pcp £200 per month

If 1st + refuse the remortgage i cannot afford to pay all this as I have requested with another bank to take the same mortgage but over 27 years
what do I do? bankrupsy is an idea but I dont want to loose the company I have worked for 9 years to get a good reputation; can anyone please help me as this is tipping me over the edge
p.s. I have worked my monthly outgoing without bills i.e. food, clothes, petrol, utilities, council tax etc. at £2200 per month out of a £3k wage

thanks for any consructive help in advance, Paul

Sammy_Girl

jaspy412 wrote: »

Hi all this is my second only post and I am desperate with what to do: -
currently I have a limited company and earn approximately 3K per month, my 5 yr fixed rate mortgage is now up and the Halifax have upped this from the 5% up to their standard variable of nearly 8% taking payments from around £700 of nearly 1K per month. My house is currently up for sale for 175K but no interest in buying, but the problem is i have a first plus loan for £570 per month whereby the Halifax wont re mortgage me as I don't have 3 years books showing the earnings I have now, I owe a mortgage of 117K with this added to the 1st + loan that was 60k and after 3 years payment is still 60k I am in negative equity if i sell, work has gone quiet same as alot of us and this lot added to the existing debts below leaves me wondering what to do.
p.s. my wife has no income and we have a one and a two year old child
the below are between my wife and I owe: -
credit cards £15K
student loans £14K
wifes car £9K
overdrafts £2K
my car on a pcp £200 per month

If 1st + refuse the remortgage i cannot afford to pay all this as I have requested with another bank to take the same mortgage but over 27 years
what do I do? bankrupsy is an idea but I dont want to loose the company I have worked for 9 years to get a good reputation; can anyone please help me as this is tipping me over the edge
p.s. I have worked my monthly outgoing without bills i.e. food, clothes, petrol, utilities, council tax etc. at £2200 per month out of a £3k wage

thanks for any consructive help in advance, Paul

Hi Paul,

It might be worth posting on the Debt Free Wannabe board with your outstanding debts and income and they should be able to advise where to go next.

From the look of it, if your mortgage and secured loan exceed the value of the house then you won't get a remortgage.

Good luck

Mithos

Get rid of your car and turn your wifes into a shared one? A saving of 200 pounds a month already.

Bismarck

sorry to hear about the situation.

what price will the house sell at? I know it's only a guess but you need options fast.

you say the books for the last 3 years don't show the right amount of income for the mortgage you're after....can I assume that your income rose a couple of years ago and is now slipping again? this is the fear that the mortgage providers have to contend with I'm afraid and you could struggle (which you already know).

what does your accountant say about the business prospects?

BoGoF

You sure the SVR you mentioned is correct ?

I just got a letter from Halifax saying the SVR has reduced from 7 to 6.5%.