newbies to forum thinking of selling home to pay off debts!

WASHER

Millie321 wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 1016
Benefits................................ 0
Other income............................ 597
Total monthly income.................... 2113
Monthly Expense Details
Mortgage................................ 555 - Interest or repayment? If repayment, can you not go on an interest only mortgage for a while?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 160
Electricity............................. 40
Gas..................................... 57
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 11
Mobile phone............................ 26 - Get rid of this
TV Licence.............................. 14
Satellite/Cable TV...................... 20 - get rid of this
Internet Services....................... 20 - this is high
Groceries etc. ......................... 400 - this is high, try to reduce by £20 per week for a few weeks
Clothing................................ 0 - You must spend something especially as you have children
Petrol/diesel........................... 220
Road tax................................ 25
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 39
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 20
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1809

Assets
Cash.................................... 0
House value (Gross)..................... 215000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 222000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100000...(555)......0
Total secured & HP debts...... 100000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2725......82........14.9
Virgin.........................9424......283.......0
Virgin.........................3847......116.......0
Loan...........................6800......400.......5.7
First Direct ..................8958......265.......18.9
Halifax........................6173......186.......20.9
Total unsecured debts..........37927.....1332......-

Monthly Budget Summary
Total monthly income.................... 2,113
Expenses (including HP & secured debts). 1,809
Available for debt repayments........... 304
Monthly UNsecured debt repayments....... 1,332
Amount short for making debt repayments. -1,028
Personal Balance Sheet Summary
Total assets (things you own)........... 222,000
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -37,927
Net Assets.............................. 84,073

I have added comments in above, but according to your SOA you are over a £1K short each month. Their is no way on this earth I can see cutbacks on your SOA to make you balance your books each month. You need advice and you need it on Monday morning with a phone call to CCCS.

I'm not being harsh saying the above, but trying to help you see you simply have no option but to take action asap, especially if you want to sell your home to in order to repay these debts.

Tixy

WASHER wrote: »

I know Tixy has said you couldn't transfer the mortgage (Tixy knows her stuff) but I have had a quick look at my mortgage papers and I can port my mortgage if i wanted to, it was a specific request of mine at the time of taking the mortgage out incase my husband got relocated again, so have a look at your mortgage offer and speak to your lender in around about way and find out your terms and conditions are.

Very happy to stand corrected Washer, I haven't had a mortgage like that but actually mortgages aren't something I know loads about, wrong of me to assume that all mortgages were the same . That sounds more promising Millie - definitely talk to your mortgage lender.

WASHER

Millie321 wrote: »

No we are not locked in on our mortgage thankfully, that expired end of last year.

I will speak to cccs on Monday r.e immediate action to take.

Do you think i'd be mad to get another card to meet the repayments for next few months while we try and sell?

I don't know what to suggest, (I know what I would do, only if I was sure I could sell my home within a month or so) but you cannot meet the min repayments as it is,creditors will not look kindly on you if you take credit out knowing full well you cannot repay it in the future.

Only you can decide, sorry if thats not a definate answer you wanted.

WASHER

Tixy wrote: »

Very happy to stand corrected Washer, I haven't had a mortgage like that but actually mortgages aren't something I know loads about, wrong of me to assume that all mortgages were the same . That sounds more promising Millie - definitely talk to your mortgage lender.

Tixy, I don't know if its a special clause in my mortgage offer, I don't know if its the norm, maybe if the OP posted a question on the mortgage board, someone could enlighten her. My mortgage is with Santander, it was taken out with the Abbey before they changed the name a couple of years ago.

OP, who is your mortgage with, and I could Google porting mortgage with your lenders name and see if I can find anything?

Tixy

Looking at your SOA

What is the other income figure please? Is some of this your child benefit etc? if not have you forgotten to include it?

Other than some cutbacks in groceries and maybe looking for a cheaper media package (landline/internet/tv) it doesn't look like there is much you can cut back on.

I wouldn't go for the option of another card to use until you sell but just trying to think of other options - would it be at all feasible to sell one of the cars as you are not working, this could tied you over for a short while.
If you did try to carry on preserving the credit rating just until you move then maybe you could get a repayment holiday on the loan for a few months (some allow up to 6months) which could help with breathing space.

That said if as Washer suggets your mortgage is 'portable' then maybe this wouldn't be necessary anyway.

Millie321

washer i did originally budget 300 for food but cccs told me not to go so low for family of 5.

mortgage is repayment. we have had a payment break for a year already so don't think they will offer that again, but will check.

would love to get rid of satellite, but don't have a tv arial - i have rung and asked to get it as cheap as poss, but they say we have a lifetime discount on our account and if we move to the lowest package it will utimately cost us more anyway this includes the whole bundle with virgin - tv, broadband and landline.

Mobile phone contracts are 13 - the cheapest we could get and tied in for over 12 mths.

yes we have been spending on clothing - but currently as you can see i cannot afford to budget for this.

This is new for us - and so far have managed to spend only £50 on food and household goods per week for last two weeks. If i keep that up the next 2 then i've halved that bill and if clothing needed (don't forsee any for few mths) will use out of food budget.

Would love to sell a car, but my partner needs his for work, and we live in a tiny village with no amenities, so i need the car to get to and fro plus when i return to work will def need it for commuting.

Millie321

Tixy - yes other income is child benefit, and tax credits.

Thats a thought i hadn't considered a break on the loan, i shall find out.

Millie321

My mortgage is with nationwide, i shall look for paperwork.

WASHER

Millie, don't forget in Feb and March you will not pay council tax, so use this money wisely, it could help towards a debt repayment, or you could use it to purchase school uniforms ready for september, if you go onto a DMP, money may be tight, and this little extra may just help you out. Just a thought.

WASHER

http://forums.moneysavingexpert.com/showthread.html?t=934717

I have found an old thread about Nationwide and porting mortgages, it may be of use or not.