Do they sometimes refuse?

continualdiamond

Info - Myself and OH 26, no children.

Property - 2 bed leasehold flat, 100% mortgage 2 yrs ago at £82,000

Debts - £27,000 between us (though likely to be more)

OH was unemployed for 6mths this year and we struggled big time, were in a DMP and could only pay £11 a mth so £1 to each creditor. Most just didn't care and charges went on every mth. This is why i think the debt will be more than £27,000 now.

OH finally got a job, but a lot less than he was on before, so we only pay £195 a mth to payplan. That would take 12 yrs to pay off £28,080.

Yes we got ourselves in this mess, but were trying to sort it out before OH lost his job.

We just wanna start a fresh, we want to start a family and all that business. If we kept going, out debt would increase id imagine once we had a family.

Would BR ever be refused under these circumstances do you think???

I was wondering about vol repossession and use our mortgage payments (£439) to put towards BR fees and deposit for renting etc etc.

Waspeze

AFAIK there are three reasons for BR to be refused:
1: You are not insolvent .. e.g your equity is greater than your debt
2: potentially if you haven't taken professional advice
3: If your forms are filled in incorrectly (not just little errors that can be corrected, I mean totally wrong!)

I guess there could be others e.g acquired debt and made no effort to pay back?

Nothing you have said would suggest you would get refused ... have you taken advice from CCCS, National debtline or your local CAB?

HTH

imcognito

I cant imagine they would say no to you hun.

Is there no equity in the property?

Would you be able to rent for less than the mortgage?? If not then I would look at keeping unless you are behind or there is secured lending on the property personally.. but obvioulsy its down to you!

The only reason BR should get turned down is if you have enough income to service your debts...

maxmycardagain

have you had the property valued?

continualdiamond

Haven't had the property valued, but with the way house prices are at the moment i can't see it has much equity in it, if any to be honest.

Especially as we borrowed 100% (£82,000) like i said above. All we've done to the property is double glazing at the back (front already done) and of course on fiance, so thats one of our creditors.

Our garden is a mess compared to what it was when we bought it, cos we thought we'd level it and put grass down, thats come to a stand still.

Also my next door neighbour sold hers for £89,000 and is was wayyyyy more nicer than mine and came with a garage.

No debts secured on the property and never missed a payment, im just scared of continuing like this as £195 to payplan is all we can afford.

Payplan actually recommended going BR if OH didn't get a job within 6mths, basically 6mths was all that they could continue the DMP for with £1 token payments. They were honest and actually said they shouldn't really of even done that cos obviously we didn't have enough surplus to actually make a difference to reduce our debt.

If i actually sold my flat we'd be worse off in the sense of no equity to pay any of the debt off and we have 3 yrs left to run of a fixed rate, so would have that penalty to pay as well.