big mortgage worry

redpete

twerp wrote: »

looking through my outgoings I do pay out on life insurance, is this required (im 26) does anything other than life insurance cover paying of the property if me or my partner were to die?

There is no state benefit that pays off your mortgage if you die, the building society does not write off your mortgage if you die.

You need some form of life insurance to cover this eventuality, unless the surviving partner can manage the repayments on their own, or they are happy to have to sell the property and maybe find money for any shortfall.

Rob71

twerp wrote: »

...think id prefer to do sell myself on the street once a month than go to those kind of extremes...

:eek:

Seriously?

You sound like you're switched on, realise there's a problem and accept you need to do something about it. That's the first step.

Getting stuck in to working out the best way to pay down your debt is the next step. I know the general consensus is pay off your loans/cards as soon as possible, but if you think a 7-10% interest rate could mean losing your home then you need to do what you can to hold onto it...

Do the SOA calculator thing - you don't have to post it on here, just look through it and realise where your cash is going. You might be surprised by the results.

The usual stuff like reduce your insurance premiums where possible (as for life cover, I don't have any but that's my choice - you might not be comfortable without it).

Try reducing what you spend on food and stuff by being a bit more organised - it's not about going without, it's just making what you've got stretch a bit further.

Stick with the spreadsheet, pay down what you can, and in a year or so @600 quid a month(?) you should have made a bit of a dent in your situation.

BTW, that 18k loan is unsecured, so doesn't count towards the mortgage, or am I missing something?

Best of luck!

twerp

missmoneypenny - not sure what you meant with the renting section, its my own property, thought i made that clear!

sky is being cancelled tonight, and my love of culinary delights in the kitchen need to go on hold, back to the frozen section of asda from now on! I already have a spread sheet of my outgoings so can see from there what they all are, I know the saying every penny counts but scraping £2 of this and that I dont think is going to help my situation. Big choice is house or credit cards, I really dont think I will reach a position where i am out on the street, just at the moment I feel no pinch and looks like I may will.

My main gripe is at the moment things are rosey, bank gets there money, I have no problem paying it, never missed payment etc. Would be far fairer if things went on individual merit, Id class myself as decent business to any bank. Just when you see all the spongers getting big semi detached houses for nothing, people living it up on disabilities etc I work long hours and pay my taxes but probably find myself in one of the worst positions! hard not to feel a tad sorry for myself! hence my annoyance with NR

twerp

i have just been going over my mortgage statements, the mortgage side is at 85k, so in reality on a 90k house i am 5% in equity?! is that correct, the unseceured although linked is sepearte

i have seen some banks offering 95% mortgages and 90% morgages with deposits, but are there any examples of 95%/90% without?

_Andy_

The flaw there is you can guarantee if you bought if for £90k in 2007, that it will be valued at less today.

twerp

a house across the road from me (so identical) is currently up for 90k

_Andy_

UP for sale doesn't equate to what a mortgage valuer will give a value at. Just trying to save you hassle/disappointment. Down-valuations are common place.

Thrugelmir

switched_off wrote: »

Northern Rock Asset Management has all the toxic debt that would of reduced the selling price of the good loans. I suspect that they are going to be encouraging as many people to leave them as possible by not offering terms to keep clients.

This is not true. The mortgages that are left in NRAM were bundled up and securitised through Granite (NR's off balance sheet vehicle). Those that were free of encumbrance were transferred to the new NR.

The UK Government is going to consolidate what remains of the Bradford and Bingley into NRAM. Progressively the loan book will be run down. As its the UK taxpayer that is funding the operation. Hence the lack of new lending and the active promotion of getting existing borrowers to transfer their mortgages.

MacsReturns

twerp wrote: »

a house across the road from me (so identical) is currently up for 90k

You can check at the Land Registry what they've actually being SELLING for recently, might give you more idea where you stand on equity.

Otherwise I'd just echo what everyone else says - take every spare penny you can and pay it off something. Have you looked into getting a 0% creditcard transfer deal, it might only last a few months but pay that down and you're cutting your debt, not paying off growing interest just to stand still. It pays in the long run.

scraping £2 of this and that I dont think is going to help my situation

You'd be surprised... that's how the drip-feed gets you in the first place.. look at it the other way round, and think how easy it is to SPEND an extra £2 here or there every so often. It adds up. So even if you save £2 a week, that's £100 a year (I'll give you two weeks holiday to keep the sums easier ), and if that's paid off your credit card instead it's worth £107 a year. And if you can save £2 a week, well why not £2 a DAY?

But really you've already done the hardest thing, and that's decide you have a problem and decide to deal with it. There's lots of great ideas on this forum. Good luck!

_Andy_

twerp wrote: »

for nothing, people living it up on disabilities etc

Not sure on what you're basing this statement but as one of my best friends is unable to work through no fault of his own due to disability (and would much rather work but can't) I find that extremely offensive (as I'm sure the vast majority of people claiming disability benefits legitimately would do).

If you were aware of the small income derived in those situations from benefits I'm sure you wouldn't feel it was 'living it up'.