Mortgage payment holidays

JJBH

Hello all, could really do with some help please:
I have 19'000 worth of credit card/overdraft/store card debt and am sinking under it, its costing me about 400 pounds a month.
I have applied for a payment holiday from my mortgage for 7 months to allow me to try to sort my debt out a little but will be remortgaging on the 8th month.
At the moment I believe I have about 35'000 equity in my house - 1 bedroom cottage.
I am concerned about whether this is a good option due to the prices of property dropping but I would like to give myself a bit of breathing space to see if my family can assist me with my debt.
Also I am also considering putting the 19'000 pounds of debt onto my mortgage when I remortgage but also very worried about this.
My mortgage is currently 98'000.
Thanks very much for anyone that can help as I am worried sick about my debt. :eek:

missyp123

I am no expert, but speaking from past experience i would advise you to look into how much intrest it will add onto your mtg balance after missing the 7 months.

i had a six month maternity break couple of yrs ago and it added about £2k to my mtg, had no choice at the time but if you need to have as much equity to re-mtg then you should do your sums.

could you not re-mtg now?

good luck :A

Jesthar

Hi JJ,

Welcome to the forum!

In order to give us a better idea of your situation, would you be able to post up a full Statement of Affairs (a sort of summary of your financial situation)? The link is here:

http://www.makesenseofcards.com/soacalc.html

If you use the 'MSE' buttin in the 'Format results for discussion board' bit near the bottom, the lovely people around here can then give you some very good advice on your options.

~Jes

tyllwyd

I agree - you need to start by doing an SOA to give yourself an idea of the bigger picture. You might find that remortgaging isn't as easy or as cheap as it used to be, because you would be going from a 74 per cent to 87 per cent mortgage, assuming that the mortgage company agrees with your valuation, of course and that prices don't drop further in the next six months (and assuming that you won't have a bit arrangement fee to pay on the mortgage). And of course there is the extra that would be added on during your payment holiday, so you could even be looking at a morgage of 90 per cent or more. So you need to look at all your costs now and see if there is any more you can do.