where to get a mortgage

pc10

hope someone can help - where to start

I'm a single parent, 2 kids aged 17 and 14 both still at school.

I work part time and my salary is £10000 per annum.

I receive WTC and CTC of £5000 per annum and child benefit of approx £100 per month.

I live in Northern Ireland and bought my detached bungalow in March 2001 and took out a mortgage of £42000 then (repayment). It is with First Trust Bank and was discounted for 2 years and I now pay SVR (plus?) of 6.8% wef 08.09.04 - payments will be £289.44 per month with 259 months to run.

As at 31.03.04, I still owe almost £39000.  

Looking at my offer of advance from the bank, it states:'should the mortgage be redeemed in whole or part or transferred to any other variable interest rate or fixed interest rate either within First Trust Bank or to another financial instituiton during the discounted rate term or within a period of 4 years from the date of drawdown (March 2001) an early settlement compensation sum, equivalent to 6 months gross interest will be payable'

I have debts of £28723  :-[ from credit cards and cahoot loan for which I pay the minimum amount each month ie £515.

Would it be possible for me to get a mortgage of at least £70000 (but preferably more as there is some essential work needed to be done to my house) and I could pay off all these cards etc and lower my outgoings?

How much settlement would i need to pay as 6 months interest to First Trust Bank?

I have looked at various sites and the best I can come up with is a mortgage with Intelligent Finance of £75000 which would cost me £429.57 per month over 25 years.

My house is worth at least £100000.

I know I have had my head in the sand for some time now but its time to get on the straight and narrow for once and for all.

I hope someone can give me some pointers along the way.

Spendless

I'm afraid I can't be much help. I take it you want to raise the mortgage to pay off the debt. The thing with doing this is you're putting your house at risk, if you can't pay a debt when you've secured your house against it.
Hope I've explained that right.
I'm sure someone withbetter knowledge and expertise than me can advise. It's very quiet on here today though,you might have to wait unitil Bank Holiday is over.
Have you also posted on debt boad?
Good luck.

yonk

I think you need someone to look at all this for you properly and work out a plan of action objectively. Your local CAB should have a specialist money advice team and they can look at it all for you.

The problem with rolling personal debt into a mortgage is that if you get into debt again it becomes harder to get out as you are getting left with fewer options all the time. Plus you are paying immediate debt off over a much longer time. And if you start to miss mortgage payments, the bank can repossess the house. It is better to tackle personal debt by rescheduling it and leaving it unsecured than by extending your mortgage. Your CAB should explain all this in much greater detail.

Don't let this scare you, at the CAB where I work, we sorted out 1.2 million pounds of debt in August for people. It helps just to share the load with someone else.

aidsy

hi pc10

Mm what if there was a property crash soon, and your detatached property was now worth 50k, what would u do now. Its not out of the question as many experts say there will be a crash.
I dont mean to sound harsh but it could hapen .
i would probally take money from the house to pay off loans, so remortage if u can


just being nosey now where in NI r u?

pc10

Thanks for the replies.

I know my home is at risk if I don't keep up the payments but I really don't think I will let things get as bad again if only I could get sorted out now.

I know I should go to CAB and maybe I will do it - I guess I have only just sort of done my sums and seen how bad things are to be honest!

And nosey I'm in co. tyrone!!!

yonk

It's counterintuitive but it really is better to have personal debts rather than secured debts if you are struggling.

The rest of the time secured is often best as the debt is normally cheaper.

All that happens if you go to CAB is that you get some advice, support and help talking to your creditors if you want it. You do a list of outgoings, incomings and then you can see your position clearly. If you contine to give too much to creditors each month, it leaves you short and you end up in more debt. Juggling keeps you afloat but also allows you to get deeper in before you sort things out.

I think it's extremely unlikely you would get repossessed but if you were made bankrupt it casues huge difficulties. Offers to creditors now are likely to be accepted and will enable you to manage in a reasonable manner in the future.