A lot of advice needed please :-(

charlie2517

Hello,

Not that much to add to what's already been said but didnt want to read and run. It will take time but things will get better (easy to say I know but having been there it does).

My biggest advice would be to rent out a room or rooms. For now it's about doing what you can to keep the house and paying off the debts. I only have one spare room and my living space is a lounge diner set up so I cant even turn the dining room into a bedroom but I rent out my spare room. However my fairly small spare room has a small double (ie 4ft bed) and I rent that out including bills and that SERIOUSLY has kept me afloat and kept me sane with a bit of company when I was adjusting to my new life. Most of all as I say it meant I kept my place and now am debt free, am just so used to my lodger that am happy she is still with me and I can now use her money to pay off the mortgage. If the small room could take even a single bed there would be someone who would rent it or if you could cope with that as your room for a short period you could rent out the two larger rooms.

I really do wish you the best with it all and hope you get it all sorted soon.

Big hugs xx

lisal0u

RAS wrote: »

Your deficit is £500 ish. You can get £370 permonth tax free for a lodger.

Cancel the unnecessary expenditure and that is £50 ish.

You need to give us the proper details of the debts, APRs, card limits, end dates for loans.

But I cannot see how you would be able to remortgage the house in your name only, on your salary.

I never even thought about having to re-mortgage, youre right though I wouldnt be able to do it in my name alone and neither would my boyfriend/ex boyfriend as he earns about the same as me.

Debts as follows:

American Express: £1194, 16% apr
Bank of America: £1852, 15% apr
Barclays: £2308 not sure of apr but 0% at the minute
Halifax Loan: £7000 9% apr Ends in 3 years
Halifax overdraft: £5000 £63 interest a month
Ikea kitchen: £244/month 0% ends in June
Virgin Credit Card: £14,000 (some of the Debt is boyfriends which we are working out, money spent on house renovation) 15% apr

Thanks
Lisa

lisal0u

charlie2517 wrote: »

Hello,

Not that much to add to what's already been said but didnt want to read and run. It will take time but things will get better (easy to say I know but having been there it does).

My biggest advice would be to rent out a room or rooms. For now it's about doing what you can to keep the house and paying off the debts. I only have one spare room and my living space is a lounge diner set up so I cant even turn the dining room into a bedroom but I rent out my spare room. However my fairly small spare room has a small double (ie 4ft bed) and I rent that out including bills and that SERIOUSLY has kept me afloat and kept me sane with a bit of company when I was adjusting to my new life. Most of all as I say it meant I kept my place and now am debt free, am just so used to my lodger that am happy she is still with me and I can now use her money to pay off the mortgage. If the small room could take even a single bed there would be someone who would rent it or if you could cope with that as your room for a short period you could rent out the two larger rooms.

I really do wish you the best with it all and hope you get it all sorted soon.

Big hugs xx

Thanks for your advice! My sleeping in the small room and renting out the bigger rooms isnt something ive considered but its a good idea. The other 2 rooms are good sized doubles.

Thanks for all the advice, it really does help to talk. Its making me feel a bit better anyway!

Lisa

charlie2517

One thing you'll get lots of is good advice here hun and with your family supporting you and coming on here and nattering (it kept me sane logging on every evening in the early days and just seeing I wasnt alone, makes me sound bonkers, I know, but it did).

Defo post the SOA format as ppl can then give more detailed advice.

For me I spend £50 pcm on food. I also have sold (and continue to sell) things on ebay. I do surveys too to get pennies (kept me from using too many hankies in the early days as I was too busy clicking!).

All the daft little things do add up and you will get there financially and emotionally if you want to. Defo speak to one of the debt charities too as you've got planned. The more advice you have the clearer the picture will be, it may be some tough choices ahead but atleast they'll be informed choices.

I know renting rooms out isnt always the ideal, and it may not be the answer to everything, but for now, as I say it may be for you about survival (financially ...for me it was about surviving emotionally too..that and not causing tissue stocks to deplete nationwide!!!). There are ways to get you through the next few years that arnt the ideal eg sharing your home or cutting back but if they help you achieve your ultimate goal then it may be worth considering.

I will keep coming back to see how things go.

C xx

savingmummy

lisal0u wrote: »

Debts as follows:

American Express: £1194, 16% apr
Bank of America: £1852, 15% apr
Barclays: £2308 not sure of apr but 0% at the minute
Halifax Loan: £7000 9% apr Ends in 3 years
Halifax overdraft: £5000 £63 interest a month
Ikea kitchen: £244/month 0% ends in June
Virgin Credit Card: £14,000 (some of the Debt is boyfriends which we are working out, money spent on house renovation) 15% apr

Thanks
Lisa

OK Lisa if you do your full SOA using this one http://www.makesenseofcards.com/soacalc.html (hit MSE button then copy and paste onto here)

Include EVERYTHING all debt and APR`s.

This SOA is so much clearer and easy to understand and will show you where you go from here.

lisal0u

Hi again,

Not good news Im afraid, the split is for good! He says were not good for each other and hes not happy. Not a lot I can say to that and its horrible cos I dont agree!

Ive moved in with my Dad and he has moved back to the house so that we both can afford to pay the mortgage for now.

Im going to talk it all through with my Dad and come up with a plan. I really want to keep the house as I love it but it depends on getting rid of the debts first.

We went to the bank and he would be able to take on the house on just his salary so if I can clear the debts I will be able to too as I earn slightly more.

We cant rent it out as there isnt 25% equity in the house.

savingmummy - I will fill in that soa and post it when I get chance!

Hopefully Ill have some better news soon!
Lisa

miss_missy

hi lisa
im so sorry about your relationship but glad to see your try to sort everything out and get rid of your debts

now please try not to get upset with anything i say next i just want to try to help you

you say you went to the bank and they said your partner could take on the house was that at the mortgage of 104000? or have you had it valued? did it include how much he would have to give you for your share?
does he have any debts?

now you say you could afford the house because he but you would have to give him his share of equity and 3000 from deposit

now also the bank will be going off figures you gave them but remember also you may beable to get xx amount of mortgage but you already say there is less than 25% equity so by the time you pay him his share your equity in the house goes down even more and at the moment lenders arent as keen for smaller amounts of LTVs and you will face higher apr because of the smaller LTV

on top of that mortgage lenders tend to undervalue house when they value them

i know you love the house but do you really feel it would be a good thing to take it on and on top of that what about the fact it will remind you of you ex as you did intend to share it

i hope i havent made you feel bad from my post but i really do think if he is willing to buy you out you would be much better off and probably happier in the long run if you take his money and run

take care

lisal0u

Hi miss_missy,

Dont worry you havent upset me, Im greatfull for any advice!

He could take on the mortgage at £104,000, we havent had it valued as we dont really want to sell it. It didnt include any buy out either. He does have a credit card with about £900 on it and a student loan but thats it. We have both banked with Halifax forever so they had all details of our finances that they needed.

The chap at the bank said all we would need to do was remove one of our names and we wouldnt need to remortgage or lose our 5 year fixed and have to pay a redemption. He said they would charge £160 for this and a solicitor would charge around £200 to do their part.

He doesnt want the house as he's fallen out of love with it, I dont think hes dealt very well with the stress of the renovation and its taken the shine off it. But he would like me to be able to have it if I can. This is why he's living there as he can afford to pay half the mortgage and all the bills.

If we sold it we would lose a lot of money. I dont want to live with my Dad for too long, its too depressing.

I really want to fight for it otherwise Ill be left with a lot of debt, no house, living with my Dad and no prospects. I can cope with living there and the memories as we havent really had any time to make any. Only the ones of building it.

I dont really know my heads a bit of a mess! Maybe in a few months when its all sunk in Ill think differently! I cant see him wanting to stay there for long especially if he finds someone else!

Lisa x

miss_missy

lisa i do understand loving a house i loved our first house and didnt really want to move but with 2 children need much much more space nothing fills a house quite like children!!!

now we have to see how to try and help you afford it because at the moment with the debts and cost of running a house youll not beable too

oh also i notice you have a halifax loan and overdraft totalling 12000 with them so did they definantly look at the possiblilty of either of you taking the house on or was it just your partner they looked at as you stated they said he could take it on on his salary

i would have thought for them to allow just you to take it on you would have to at least pay off the 5000 overdraft as that makes it look as if you really cant afford to pay any bills

not sure but if you start the dmp before the mortgage is in just your name then they may not allow it as they would be on you list of debtors and know you full SOA

and remember once on an dmp i do believe its much harder to remortgage although you would have nearly 5 years. Is it fixed or a tracker???

try writing an soa for yourself while living with your dad so we can look at helping you pay as much off your debts as possible at the moment

miss_missy

another thought how would your partner feel about you living in the house and him paying half the mortgage keeping his share of the house as an investment, it would mean staying in touch which i dont know if you feel you or he wants to, but it could be a good investment for you both as house prices are starting to rise, just an idea i dont know if he could afford that but it may be another option for you both at the moment