Worried sick and trapped

annie46abbie

Hi there.
I have a mortgage with Accord, at the time they were the only ones who would give us a 95% mortgage.
The payment each month is £927.00.Interest rate 5% I never took out mortgage protection insurance as i was stupid!!! The fixed rate is for 10 years and we have 8 and a half years left on it.
We are now struggling and i am pregnant but have a potentially life threatening condition which only happens while pregnant therefore i cannot work, had to give up my job and am just selling things on ebay at the mo.
we are considering moving across to interset only mortgage for 6-12 months and setting up our house as a house share home and renting somewhere else.We cannot afford to keep paying what we are and needless to say there is no equity in our home at the moment,so we feel stuck as the ERP is about £7000 Can anyone advise us at all, as i cannot even afford to do my shopping at the moment and the kids need new shoes, my hubby brings home £1475 a month and because of his wage we can get no benefits apart from tax credits which is £150 and we have a loan and gas,water,council,credit cards,catalogues etc to pay off so we ar eleft with nothing, i am even considering going bankrupt but am worried i may never get back on the ladder as i am 30 years old. Sorry for the ramble but i am very scared and feel sick xxx

danielanthony

I would look on the debt free wannabe board as they might have better ideas on how to reduce your outgoings.

Or,

If you have debts greater than £15,000 than an IVA could help in your situation and you could keep your home plus be debt free in 6 years. This could be a better solution than BR and more details can be found on the IVA and BR board.

annie46abbie

Hi daniel, thanks for your reply. Unfortunately i do not have debts more than £15000 its about £6000 but its just the monthly payments that are crippling us. I am trying not to let my credit file get too wrecked as i only have a score of 315 at the moment anyway. I just wish we had not bought the house now xx

maninthestreet

OP, are you on maternity leave, sick leave, or have you left your job completely?

annie46abbie

maninthestreet wrote: »

OP, are you on maternity leave, sick leave, or have you left your job completely?

I have had to give up work completely, as the baby may need hospital care as well and i cannot guearantee when i will be back at work, it was nearly 2 years with my 1st daughter,it sounds horrible but we took all the precautions this time but i still ended up pregnant lol
they have put me on zero hour though incase anything happens and i can ever go back, its a big department store.

BexInLondon

I don't suppose there's any scope for you to take in a lodger?

[Deleted User]

Ok first of all - deep breaths chuck. You'll do yourself no favours worrying yourself to death Life has a habit of kicking us in the teeth when we least expect it, but there's usually some way to get through.
Have you tried calling Accord and your debtors to explain the situation to them? They may be able to suggest some other options, expecially with regard to the credit cards, perhaps a lowered payment plan until you can get back on your feet?

Conrad

This is not advice, merely a comment;

Bankcruptcy can be a life safer. I've seen enough over the years as a broker to know this. Forget IVA and debt managment plans - it's all muppetry (and earns commisions for third parties - unlike bankcruptcy).
Having an IVA or DMP / arrears etc puts you in a worse position thatn bankruptcy as those debts can carry on for years, even decades so you never get free of the bad debtors label. People come to me with DMP's that are 5 years old, and I cannot get them a mortgage, where as a 5 year old bankcruptcy would present much less of an issue.

Bankcruptcy is no worse than a DMP or IVA in the eyes of a future lender. You will be discharged usualy after one year anyway.

It means all debts will go away at a stroke.

Some posters may tell you all sorts of urban myths, for example the usual one that your TV will be sequestrated etc.

Well that's not the real world experience I encounter. You make a clean break and start over. The court will not want you destitute and wont take your car and wll do everything possible to help you retain as much as possible - afterall you have innocent children in all this.

It will mean renting for a few years, but it can be a life saver in the sense the wall of debt worry is gone at a stroke.

One of my brothers did this and he and his wife say it was the turning point in thier life. Since then they slowly rebuilt, free of debt and could not be happier.

Your decision, but beware all the muppetsa going down the DMP / IVA routes.

speedbird1973

Conrad wrote: »

Some posters may tell you all sorts of urban myths, for example the usual one that your TV will be sequestrated etc.

Mine's a Plasma :rotfl:

annie46abbie

BexInLondon wrote: »

I don't suppose there's any scope for you to take in a lodger?

No unfortunately not as we have no room, unless they want to sleep in the conservatory with the dog lol.

annie46abbie

Myssinic wrote: »

Ok first of all - deep breaths chuck. You'll do yourself no favours worrying yourself to death Life has a habit of kicking us in the teeth when we least expect it, but there's usually some way to get through.
Have you tried calling Accord and your debtors to explain the situation to them? They may be able to suggest some other options, expecially with regard to the credit cards, perhaps a lowered payment plan until you can get back on your feet?

Thank you hun, my hubby is waiting to call accord to see if we can transfer over to a interest only mortgage for a short while. I just feel such a failure to my kids, i swore i would be better off than my mum and dad were but i am not and i feel i am letting them down, we never go anywhere, i can't buy them clothes and its a horrible feeling.

If we dont manage to get a interest only mortgage then bankruptcy may be our only option, as the other poster said, but i wanted my mortgage paid so when i get older i could sell up and enjot my retirement plus give the kids there inheritance while i was still here xx