adding debt to mortgage

BeautyandtheBeast_3

Paulgonnabedebtfree wrote: »

I don't automatically say no to this. My view is that it is OK to do this but only under certain stringent conditions.

1) If the reduced monthly outgoings are sufficient to bring your monthly finances into credit.
2) If you feel totally confident that you won't start racking up unsecured debt again after upping your mortgage.
3) That you take a mortgage where you can overpay without adverse penalty (many will restrict this during an offer period e.g. fixed or capped rate).
4) That you get a deal with a fixed or capped rate for at least 2 or 3 years while you make overpayments. This will assist with a soft landing when the cap or fix ends (not so relevant at the moment as rates are so low but surely weill be relevant in a couple of years).
Probably there are other things to bear in mind too.

My fixed rate recently ended and I'm currently saving about £160 a month. Just as well as the clutch on my van started slipping this morning.

What you must do is be honest with yourself regarding your ability not to build up more unsecured debt after mortgaging your previous unsecured debt. It's an easy trap to fall into and it may even be a good idea to cancel some card accounts to avoid temptation. Maybe just leave one or two open with modest limits in case of emergency.
I know some on here will say NEVER mortgage unsecured debt but I believe that there are times when it is reasonable to do so.

great post :money:

getmore4less

you need to seperate out the business from the personal.

I think you also need to work out which debts are business and which are personal for tax relief.

The business also need to retain funds to replace the vehicle at some point or you will just have to borrow more money.

Paulgonnabedebtfree

Ames wrote: »

Just one other point - if it's not fair to expect your OH to contribute to the SOA in regards to debt, how is it fairer to risk her home by making the debt secured? I'm guessing that as a taxi driver you don't have company goodwill to fall back on if anything happens and you're unable to work, how would you meet the secured payments then? Unsecured can be negotiated with much more easily than secured.

You make a good point Ames.
I took the view that there are no children and that Dave was the only payer of the mortgage.
I suppose a lot hinges on whether there is an intention to have children in the future and whether Dave's partner contributes to the mortgage or is a co-owner of the property. I would say that if Dave's partner is not on the deeds and is not contributing to the mortgage, then she effectively has a grace and favour home and has no say over Dave's final decision. It may sound harsh but if she wishes to purchase half of the property from Dave and make half the mortgage payments in order to get a say, then Dave's finances could well be resolved anyway. Of course I'm only talking hard cash and not making allowance for all the other interractions in a relationship but I once allowed myself to be manipulated into a situation where i had excessive responsibilities and no rights so maybe my view has been coloured. Not saying that's what has happened to Dave of course because i don't know the guy.

dave73

some very good points been made so far thanks for the replys so far but its just knowing what to do for the best

dave73

anyone got any more thoughts

chalkie99

dave73 wrote: »

anyone got any more thoughts

Yes,as far as I can see, you have not answered the point by Jesthar regarding your existing loan(s). How did they come about? You have one particularly large one for nearly £25k and if that was taken out as some sort of consolidation loan then you have not addressed the cause of the problem.

shadydaz

Hi Dave,

Does you partner know how much trouble you are in? Are they working if they pay Gas elec etc?
It may be benifical to try and get accurate figures for all income and expenditures?

Well done on taking the first step and coming on here. If you chose to provide a whole and accurate picture of your financial situation then there will be many experienced DFWers who will be able to start offering you constructive advise on how to tackle your problems.

All the Best.

Daz.

dave73

chalkie99 wrote: »

Yes,as far as I can see, you have not answered the point by Jesthar regarding your existing loan(s). How did they come about? You have one particularly large one for nearly £25k and if that was taken out as some sort of consolidation loan then you have not addressed the cause of the problem.

25k loan was for new taxi

dave73

how do i change the figures on my soa to save making a new one

zippychick

Hi Dave, go to your post where your SOA is and click "edit" , make your changes, then save. Bingo