In need of some help

desperatelyseekingadvice

Hi – I am new to this site and am in real need of some advice from you all please. When my husband and I bought our first property, my parents took out a mortgage of £45,000 on their property to help us on our way, which we pay for each month. Fast forward to now and we have our own mortgage of £105,000 on our house, plus this payment to my parents. My Dad passed away this year and my mum is now 65 so her mortgage company need her to repay the amount in full by February 2010. We have known about this for some time and were planning to absorb it into our mortgage with Halifax. By some awful error (it seems I accidentally deleted my direct debit details via online banking in 2007) I missed one mortgage payment in 2007 (although I had a few thousand in the bank at the time and as soon as I found out about it paid over the telephone in full and reset the debit instruction). Now Halifax are telling me I can’t borrow extra money on my mortgage to absorb this £45,000. But they are offering me a personal loan of £9,000! sorry, please bear with me I know this is a long story! So, I have what seems to be a very good credit rating (experian gave me a score of 999) and we have a current loan to value of just over 50% on our property (the extra would take us up to 75%). Our house is worth around £200,000. I would move to another lender, but I am concerned that it won’t go through because of the arrears error and that just applying would damage my credit rating… plus, since having children I work reduced hours at work. My salary is £28,000 but this works out as £23,000 pro rata and my husband is self employed with a growing business. His annual income works out at about £15,000.

I don’t know which way to turn and I actually feel sick with worry about the whole thing. I know very little about my options financially, which is why I was hoping someone on this forum might be able to share some advice. Should I go for a secured loan to cover the 45k and pay the extra interest? Or should I try to get a couple of personal loans? I only have until February now and I just don’t know what to do. I am so worried I almost want to just put my house on the market to raise the money, but I know that is daft..

Thank you so much in advance for your help.

Thrugelmir

More likely that your lender is concerned with your household income in relation to the amount you wish to borrow. To take out unsecured loans on your level of income would be extremely risky, and certainly not a cheap option.

In practical terms. Could your mother consider down sizing her property or even selling up and moving in with you.

In the medium term there are difficult times ahead for many people. Tax rises, interest rate rises etc. So personally I would cautious with your decision.

Tuscan

im a bit confused as to how much you still owe your mum?, but it maybe that your mortgage company wont lend you that amount on your current incomes..