mortgage and overdraft advice

cheermeup

A couple of weeks ago I made my first post on this site. It was the fact my ex had left me with mortgage,second mortgage and overdraft debt. I have contacted my mortgage lenders and bank to explain my situation, the mortgage company went through a budget plan with me over the phone and suggested that I pay temporarily just the interest, and to seek advice before I sign and return. The bank suggested I take out a loan to cover the overdraft of 4k. This sounds good, but I am due to retire in just over two years. My ex has not contributed to the mortgage or any other bills for over 6 weeks now and I don't expect him to as he is not living with me, but he has intimated that we should find out more about equity release (there is roughly about 20k on the property at today's prices) I have been to CAB and now waiting to see a counsellor which I have been told could take 4 weeks! I feel really frustrated as I could end up losing my home because of all the lies and deceipt. Could anyone come up with some good sound advice please. I am still in full time employment - no sick days yet!!

CH27

If you are talking about the Equit release fiems you have to be extremely careful about them as the ontracts are very detailed.

Could you not sell the house, pay the mortgage & debts off and start again afresh?

dancingfairy

Not sure why the bank suggested you take on more debt - ie a loan to clear the overdraft. If you can't afford the overdraft now how are you going to afford a loan - don't tell me they said it would be secured and on your house (money for them for flogging you stuff AND they put your house at risk - um no thanks).
Regarding the overdraft this is the least of your prirorites right now. Firstly go to Barclays or the Co-op and set up a brand new bank account with them and get all wgaes and standing orders transferred across straight away (as long as you don't owe Barclays or Co-op any money).
You can then call the shots with regards to when and how much you pay off the overdraft without worry they will call it in and take money that is essential for food, or to pay the mortgage etc etc.
The overdraft actually is at the bottom of the list. Firstly you need to sort out the mortgage and secured loan.
1) Have you done a SOA - see the website make sense of cards to see exactly how much you have coming in and going out? you will need this when you see a debt counsellor but you can get cracking on this straight away.
2) Can you afford to pay the mortgage and secured loan and eat, clothe yourself etc? this is the next thing to consider?
3) your bank has offered to put your mortgage on interest only for a while? can you afford this and the secured loan? ignore the overdraft for now.
4) equity realease is a largely unregulated market and it is very much buyer beware. I would very much caution against this - what's the purpose? you will erode the 20k in the house, presumably your ex wants half or his share? you still won't be able to pay the mortgage on your own and this will lead to a bigger mess so I can't see what the point to equity release is? Please explain further.
Who's name is the mortgage in? yours or both? ditto the secured loan.
DO the SOA (see point 1) and then contact National Debtline or CCCS and see if they can help you quicker than your local CAB.
I'd also be very very very very surprised if your house gets repossessed in 4 weeks - even people who have gone bankrupt can barely get the banks to repossess months down the line (unless there are arrears already and a suspended possession order already in place? or some other key piece of info that is missing?).
Once you've done your budget you should be able to work out what you can afford to put towards the secured loan and should speak to the secured loan people to see if they can give you a few months grace etc.
Also keep posting on here and if you post up the SOA then people will also be willing to help and tell you what options you have etc.
Best of Luck
df
SOA link: http://www.makesenseofcards.com/soacalc.html

theoretica

Seems to me from your other posts that he has already spent at least his share of any equity in the property. Don't let anyone pressurise you into anything.

Do you work for an employer who has an employee assistance programme? These can often offer advice much faster than CAB.

Would you be able to take in a lodger or two?

cheermeup

Yes I do work for an employer with an assistance programme, Vie Life, I have got their number and will call them tomorrow.
I have one other bedroom which I am re-arranging as I thought a lodger may be a good idea.
You are quite correct he has had much more than his share of the equity already and still uncovering more!

Thanks again for taking the time to reply I really do appreciate your comments and I will keep updating.