Advice Needed

harty_2

Hi I we have a secured loan on our house which we are struggling to pay so was thinking about a re-mortgage or if we could release some equity so we can pay this loan off , the loan we owe is £8,000 and the payments are £330 a month should of been £210 but we fell behind with payments ..our house is valued at £110,000 and we owe £35,000 unfortunatly we also fell behind with repaying this as my hours was cut short at work .so our mortgage lenders said we have to have 12 months without missing a payment to be liable for a re-mortgage .... can anybody advice me as to what is the best thing to do, thank you in advance .....

cattie

Is it possible to downsize to a smaller/cheaper place or else try to sell and then go into rented?

Can't think of anything else to suggest as there is no way you're going to be able to remortgage at the moment & if you default on the loan, the lender may try to force the sale of your house anyway as it's a secured loan.

Have you been to a money advice service to see if they can suggest anything?

Perhaps if you post details of income & outgoings over on the debtfreewannabee board you'll get some useful advice on how to cut your outgoings there.

_Andy_

How many payments have you missed on the mortgage?

harty_2

we have missed 4 payments so roughly £1,300

Brad9

I was made to pay a penalty fee after i paid my monthly van payment late. Would any one know if i can claim these penalty fees back?

harty_2

can you please start your own thread as im waiting on advice ...thanks

Mrs_Bumble

With that sort of payment history on a mortgage or secured loan you are not going to be able to remortgage.

Check out this leaflet and maybe some of the advice will help

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

Who is the secured loan with?

harty_2

the loan company is GE money

Conrad

The only potential sources have sky high rates starting at abouit 13%!! Borrowing say £50000 (to repay the cost of penalties etc) would cost c£550 pm interest only. Demonstrating affordability can be tricky.

Beware - there are sharks out there that will promise you a 5% rate in return for a £1000 up front - that's the last you'll ever see of them once paid!

Best of luck