Advice needed-secured loans

theresagardner

Before I start, I just wanted to say that I agree with the general belief that debt is bad and should be avoided at all costs. However, my understanding is that ordinary people like me come onto these forums for practical advice and help (and not to be told off). Everyone makes mistakes, but also deserves not to be judged !
Anyway, my problem (very condensed) is:-

Due to lots of reasons (inc death and redundancy) my husband and I got behind with our mortgage about 2 years ago. (at the same time our fixed rate ended so our payments doubled) Although we had over 45% equity in our house we couldn't get a loan or remortgage as our mortgage provider wouldn't allow it. Instead the pushed for repossession. At the 11 hour they agree not to repossess provided we doubled our payments ! What choice did we have ? We have kept up with these arrangement for 16 months and am now down to £4000 arrear (which was 2.5 months mortgage). But as you can imagine keeping up with this has had a knock on effect. We now have a ccj. So although someone might accept the mortgage arrears they won't accept the ccj ! Back to where we started. I know consolidating isn't always the answer, but for us it is. We want to borrow enough to clear all debts now so it that gives us an affordable payment until we are able to re-mortgage (which we've been advised should be in about 12 months). If a secured loans at an interest rate of 20% would still mean we are better off each month. My husbank has a secure job and I'm self employed (and have been with the same company for 6 years). Both our incomes have started to go up significantly and when we can remortgage we'd like to repay it quickly.
But we need advice of who to approach for the funds we need now-to enable us to get back on an even keel.

Thrugelmir

Why not sell your existing home and purchase a cheaper property?

theresagardner

Part of the long story I'm afraid.

Both my children live at home, and so does my "mother-in law" and "Grandmother-in-law". It was my husbands father and grandfather that both died in the space of 6 months !. Selling wouldn't help as we would still need to buy somewhere to live (and it would cost the same !) Renting isn't an option as it's more expensive than buying in this area

redpete

theresagardner wrote: »

Part of the long story I'm afraid.

Both my children live at home, and so does my "mother-in law" and "Grandmother-in-law". It was my husbands father and grandfather that both died in the space of 6 months !. Selling wouldn't help as we would still need to buy somewhere to live (and it would cost the same !) Renting isn't an option as it's more expensive than buying in this area

Is there any scope in getting a contribution to the housing costs from the mother & grandmother? Maybe partly or fully funded from housing benefit?

theresagardner

Afraid not.

theresagardner

I just need advice of what companies are reputable with dealing with equity release/secured loans-as this is the right financial descision for us at the moment

Annisele

Equity release and secured loans are very different animals.

Have you got (free) advice from a non-profit agency about your circumstances? If not, there's a sticky here with a list of organisations that can help. They might also be able to point you in the right direction if they agree that a secured loan is appropriate.

I don't mean to come across as judgemental, but it is pretty rare for a secured loan to be the right answer. It might well the be right answer for you ('rarely' the right answer doesn't mean 'never' the right answer, and I don't presume to know your circumstances) but I'm very hesitant to actually recommend a secured loan.