big help

gucci_2

Big help needed - I don't think Lloyds should have given us our mortgage as we can't afford it and it is well out of our league! Tried to add a loan to the mortgage and even though the house value has increased a lot they said no and that they wouldn't even give us the original amount if we tried now ( system changed they said!)
So here goes ... husband's monthly wage 1,800, mine is 200 plus 140 child tax and benefit
outgoings:
Mortgage 920!!! ( 149000 mortgage)
loan 300
council tax 170
gas/electic 60
food 250 ( 2 adults, 2 toddlers - inc nappies)
paying off o/draft 50
phone bill/internet 30
house ins 30
life ins 35
living expenses i.e. run scooter, pets, kids clothes/shoes 200
tv lic 15

Basically we need to do work to the house and have no life or car etc.. and finding it tough - any ideas? help?

p.s. anyone used a "mortgage holiday" before - how does it work?

Lemon_Tree

Hi Gucci
Firstly, well done for facing up to things and having your lightbulb moment.
I'm sure there will be much more knowledgeable people around very soon to make lots of helpfull comments on your SOA, but i thought i would try and help with the mortgage holiday part. I may be corrected but i would think that if you take the payment holiday, interest is still accruing on the mortgage, and given that for most of the term of the mortgage you are paying interest rather than capital, you will just be adding to the interest and extending the length of the term.
Put it this way, when i remortgaged first time around i managed to reduce the term of my mortgage by 7 years, given how much i pay a year, that came to a saving of £28000! all of which is interest that i don't have to pay. (One of the few good decisions i have made in the past four years!)
Hope this helps, good luck with trying to get mortgage debt free, you will be able to do it with time and you will be able survive the tough times ahead.
Lem