The 1st day of the rest of my life - Upwards i hope

Jellybellybean

Sorry kissjenn, yes i have missed the overdraft off, i was in such a state yesterday. i put £50 a month for water and for rates because that is how much i am paying, didnt realize i had to put it as a debt also. yes losing my home would be terrible, i have lived here most of my life, i have never owed anyone a penny until i got ill and got myself into this mess. national debtline advised me to do all through letters but im at the point now that i dont know if i should phone Nat West and try to sort this out or would i make matters worse?

EssexHebridean

OK - if that £1100 is the final figure then you can't possibly meet those mortgage payments, no. If you're on incapacity benefit have you checked whether you should be entitled to Housing benefit as well? You can ask Nat West whether they will accept the lowered payments, but I would imagine they are going to ask what prospects there are for the situation changing - if the answer is "none" then they are going to refuse, I'm afraid.

If I'm totally honest I think you might do well to at least go and have a look at nthe Bancruptcy board. I'm so sorry to have to say it but you have so little leeway....I know you don't want to lose your house but you simply cannot afford those monthly payments, let alone make headway into the arrears and the overdraft.

How about the possibility of selling your house and making a fresh start? Even if you had to drop the price to get a quick sale, it would allow you to clear your debts and start again with a bit of money behind you in the bank. Better for you to do it, than for the bank to sell it out from under you, if only for your own dignity.

Oh, and DON'T ring Nat West - as you say yourself you're already in a state - that is the sort of phone conversation that you need to have your wits fully about you to be taking part in. Better by far to keep everything in writing - remember also to send letters by signed for post.

kissjenn

They will sometime accept switching it to interest only for a specified period say 6 months. Usually you have to be in good standing with them. Given the arrears and urgency I suggest you speak to Shelter or your local CAB first thing tomorrow. Try and have a completely up to date SOA so they know exactly what figures they are working with, that means including all the loans, credit cards, overdrafts, accounts in arrears everything. Then you can discuss your options.

Given your health, you should also consider perhaps selling the house and finding somewhere to rent during any interest only period you can negotiate. If you initiate this then you dictate your terms and what you sell for, if the payments continue to be missed then NatWest may takes all these options out of your hands.

Please please please don't see this as harsh but simply something to consider.

Other short term options are the rent a room scheme which lets you take in a lodger and keep about £80pw (approx) tax free. Any schools or colleges nearby need somewhere for exchange students? Have you spoken to the benefits people about mortgage interest payments while you're on incapacity benefit. These are income not contribution based. CAB can advise about other benefits you may be entitled to or check out the benefit forums and links on here.

EssexHebridean

JBB - how are things with you?