Help moving mortgage with bad debts

brit-dub

Hello

We need some advice regarding our mortgage but first of all some background.
Both me and my wife are in full time employment.


We had taken out 3 loans (unsecured) with Lloyds TSB and have fallen into arrears due to me loosing my job, I have since found another job, but its a lower wage.


Lloyds TSB have been very unhelpful buy allowing us to make reduced payments but are now charging us interest on the arrears which now means that after 10 months of reduced payment we owe them more than when we started !


Lloyds TSB keep writing to us and making us offers on a full and final settlement at a greatly reduced rate, which if we could find the money some how would be a really good deal..


Now to our mortgage, we owe £126,114 and our property is valued at between £180,000 to 195,000, our mortgage is with NRAM on a fixed interest rate of 4.7% a monthly payment of £918.


We received a letter from NRAM this week informing us that the fixed rate will end in June 2011, but they cant offer us any other mortgage than there variable at 4.6% and said we might be better of looking to move the mortgage elsewhere and get a base tracking mortgage, which would reduce our monthly repayments down to £600 plus a month for 2 years.


What we have been thinking is, try to move our mortgage to a tracker mortgage, for £126,114 add £15,000 which would clear our loans, ok we would have a mortgage of £141,114 but at a greatly reduced monthly outgoing for 2 years plus clear our loans at a reduced rate.


The main stumbling blocks are, we are in arrears with the loans, we have also had a CCJ for £450 from santander cards, the worries are a huge hike in interest rates.


We would be very grateful for anyone’s advice on this one, or if anyone could recommend a broker in Northampton.


TIA


The Brits

Thrugelmir

Consider selling up, settling your finances and starting again possibly by renting or purchasing a smaller property (depending on your circumstances).