remortgage advice

frustrated_man_3

we are in a tricky spot at the minute. Long story short. We owe around 15k out in loans. our house is currently worth 90k with a mortgage of 63k. I have recently moved back home after working away due to a new arrival, but my wage has dropped significantly.

i need to reduc my outgoings

Looking at a variety of banks websited I can see that there are 80% loan to value mortgages out there that would put my overall monthly ayements down to around £300 a month fo rthe entire debt, instead of the current £500 debt + £250 mortage.

The only thing is, the last 2 months I have had to be selective over payements out, thinking I could manage. Not Quite. So my credit rating has probably taking a little battering.

Any advice please

Thrugelmir

Mainstream lenders are likely to hesitant to consolidate debt. As often this does not address the fundamental issues for the overspending. If you need to reduce your outgoings to £300 then there is danger that the unexpected may happen and you will struggle to meet that.

Seek advice on the debt boards. Also consider selling up and renting. This will at least clear your debts and enable you to rebuild your finances.

_Andy_

frustrated_man wrote: »

The only thing is, the last 2 months I have had to be selective over payements out, thinking I could manage. Not Quite.

Can you be more specific? What have you missed payments on exactly?

frustrated_man_3

I havent missed any payements they have just been paid late.

Just after christmas I went from 28k to 21k, for reasons mentioned in my last post. Which meant my wifes wages dropped to a statutory materninty pay.

Also I went from Monthly pay to weekly. Which meant I had to move my standing orders / direct debits to various dates through the month.
I called all the companies concerned and explained the situation and they were happy as long as they got paid with in that calender month. This has gone on for the last 3 months. Now my work have informed me that they are putting me on to the monthly pay structure. At least this way I can set up the direct debits again and when all is paid out i can see clearly what is left over.

I can see how "on paper" I might be considered a risk. In reality I cant understand it. Due to the wage drop i feel i am being suffocated by the payements. I am relatively young (31) and I have a constant employment history with no CCJs or the like against my name. Just in recent history i have been late with a few payements.

All in all this last 6 months has been the toughest financially I have been through. In my mind it makes financial sense to re strucutre my outgoings in this way.

I just hope that lenders see it the same way. which I am doubt-full of

RenovationMan

I can see how attractive it must be to just get rid of all that worrying debt in a stroke, but all you're doing is turning what are probably unsecured loans into secured loans (i.e. attached to the mortgage). You home is your most important posession, so don't mess about with it.

Instead you should look at other strategies such as reducing all your outgoings as much as possible (get rid of SKY TV, review your life & house insurance to see if you're paying too much, go PAYG on any mobiles, go interest only on your mortgage). You could also look at increasing your income (a bit harder in these difficult times) with a bar job or weekend work. You can also get in touch with one of the debt charities who will speak to your creditors and will often get them to freeze the interest or arrange easier repayment terms.

It's widely accepted that the worst possible thing you can do is to move your debts onto the mortgage.

surreybased

Hi,

I'd agree with the other posters, be very careful making the loans secured on your home, the LTV value isn't that great and you need to prepare for any further IR rises or house prices decline.

Is there any family that could help? Does your wife plan on going back to work soon ? If you could get some additional income you might be able to make a bigger reduction on the the loans. This would be the best strategy.

I do know how it feels, I bought a house in the early 90's and had a baby, my other half lost his job and I had to go back to work really early. It was not ideal at all (massive understatement) but it worked and we managed to get through that difficult few years.

Why not have a look a the DFW board. Fill out a SOA and look at the options

_Andy_

frustrated_man wrote: »

I havent missed any payements they have just been paid late.

Which could show as missed on your credit file depending on how late they were.
Have you obtained an up to date version to check? this is significant and will affect your chances.