Re-mortgage - does this sound a good deal??

Thrugelmir

neenmarie wrote: »

What would you do in my situation? I want whats best for us now and in the future and really don't know what to do or who to speak to?

You need to speak to your husband and face up to the situation you are in. Find out where the money has gone and possibly for you to control the family finances in future.

Besides what's already been said. Downsizing in property size is another option. Release the equity in the property, clear the unsecured debt and make a fresh start.

There's no right choice in these circumstances. Its really down to what you are comfortable with.

Personally I would not consolidate the debt and repay over the next 25 years though. I would either downsize or borrow over a shorter time frame.

neenmarie

Thrugelmir wrote: »

You need to speak to your husband and face up to the situation you are in. Find out where the money has gone and possibly for you to control the family finances in future.

Besides what's already been said. Downsizing in property size is another option. Release the equity in the property, clear the unsecured debt and make a fresh start.

There's no right choice in these circumstances. Its really down to what you are comfortable with.

Personally I would not consolidate the debt and repay over the next 25 years though. I would either downsize or borrow over a shorter time frame.

We can't down size because our house is a small 3 bed which is what we need. Where would you suggest we start the search to borrow over a shorter period of time taking into account the credit report on my husband? Thanks for all the info so far it's been very helpful!:)

Thrugelmir

neenmarie wrote: »

We can't down size because our house is a small 3 bed which is what we need. Where would you suggest we start the search to borrow over a shorter period of time taking into account the credit report on my husband? Thanks for all the info so far it's been very helpful!:)

As I suggested previously, Google - MoneySupermarket - look at unsecured loans. Will give you some options to at least make enquiries.

CloudCuckooLand

Impressed that 5 minutes after I described what an SOA was, you'd already completed it...

Just because you are "just paying bills", does not mean they are the best versions of the bills you could have.

It needs to be gone through with a fine-tooth comb. Trade old energy suppliers for new, trade down your internet provider, ditch Sky, trade to a cheaper landline or mobile phone provider.

99% of people have fat to trim.

neenmarie

CloudCuckooLand wrote: »

Impressed that 5 minutes after I described what an SOA was, you'd already completed it...

Just because you are "just paying bills", does not mean they are the best versions of the bills you could have.

It needs to be gone through with a fine-tooth comb. Trade old energy suppliers for new, trade down your internet provider, ditch Sky, trade to a cheaper landline or mobile phone provider.

99% of people have fat to trim.

Please don't get me wrong we have already done the figures and it's not good! I'm new on here and simply didn't know what SOA was short for!

getmore4less

here is the previous thread.

https://forums.moneysavingexpert.com/discussion/3070824=

There has been some serious overspending somewhere

How big was the reserve that has now been used up?
(amount left to pay on the mortgage is £74,000 we borrowed £129,000 )

You realy have to get to the bottom of the debt and overspending before putting your house at any more risk.

A DMP might be a good option it will shut down the credit your OH can get.

Post the SOA.

getmore4less

neenmarie wrote: »

We can't down size because our house is a small 3 bed which is what we need. Where would you suggest we start the search to borrow over a shorter period of time taking into account the credit report on my husband? Thanks for all the info so far it's been very helpful!:)

what do you need 3 bedrooms?

If they are not all full get lodgers.

neenmarie

getmore4less wrote: »

what do you need 3 bedrooms?

If they are not all full get lodgers.

I have a son who 11 years old and expecting a baby so we need all 3 rooms!!!

getmore4less

Lets look at your proposal

£75k @ 0.79% £286pm is around 24 years total cost £82,400.

Changing just the £75k to the 4.79% over 25 years is £429pm and £128,800.

So swapping this great rate is costing you £46,400 extra

£100k is £573pm total cost £171,700

If you keep the £75k on the cuurent rate and use the (£573-£286) = £282pm to cover the £25k that can have a rate of 13% before you are worse off.

I think with list of debts, rates and max payment you can afford there is probably a way out of this without remortgaging.

I still think a DMP might be a option but hard to tell without the details.

neenmarie

getmore4less wrote: »

Lets look at your proposal

£75k @ 0.79% £286pm is around 24 years total cost £82,400.

Changing just the £75k to the 4.79% over 25 years is £429pm and £128,800.

So swapping this great rate is costing you £46,400 extra

£100k is £573pm total cost £171,700

If you keep the £75k on the cuurent rate and use the (£573-£286) = £282pm to cover the £25k that can have a rate of 13% before you are worse off.

I think with list of debts, rates and max payment you can afford there is probably a way out of this without remortgaging.

I still think a DMP might be a option but hard to tell without the details.

Our mortgage is actually only £64k, i added the other £10k to it because this is our mortgage reserve at a rate of 4.99%.

I can see that our mortgage is a brilliant rate and we won't get that again but i don't know what else to do to clear the debts/ make things easier for us at the moment because we are not managing and short every month, hence my husband using our mortgage reserve to live on and also pay 1 loan's monthly repayments. The reserve is up to the limit now!!! What would you do? Look into a 2nd mortgage? get a secured loan, try and borrow £25k over a shorter period of time?