tied in until 2014 my mortgage with halifax

dimbo61

You have a 90% LTV so even if you could remortgage you would still be looking at 5% for a fix and thats before you find the 2% ERC fee and other charges to pay out if you changed lender!
You are better off clearing the CC debts over the next 2 years and then overpaying the mortgage debt.
In 30 months you will hopefully have no other debts ( except the mortgage ) and able to get a better deal

Thrugelmir

You say that you have a bank overdraft. Do you use your overdraft every month?

curlyboy

im in my overdraft every month , been a home owner 7 years same property and in same job 5 years i hope goes well on my file

Thrugelmir

curlyboy wrote: »

im in my overdraft every month ,

Firstly objective you should have is to tackle this. Cut back on expenditure. Clear your overdraft and do not use it.

An overdraft is a red flag to a lender. As it shows that you are not in control of your personal finances. If a major financial event occurred you would not have the funds available to rectify it.

Second objective is to tackle your credit card debt.

Suggest you visit the Debt Free Wannabe board for advice and support. Plenty of people on there who are tackling their financial problems by counting every penny they spend.

The power to change the situation is in your hands. Do you have the commitment to see it through? A lender isn't going to give you an easy way out. So the choice is yours alone.

opinions4u

At 90% LTV you're unlikely to get a remortgage.

And if you do, would it be cheap enough to justify the ERC?

Start spending less. Stop being overdrawn. Pay down the credit card debt. Consider overpaying the mortgage.

Joe_Bloggs

@curlyboy
I would have thought that you need to save around 250 a month to hope to have a chance of paying off your cards in 30 months. If you are living from your overdraft each month then there is little chance without making better budgeting decisions.

I am not sating that 0% deals are bad but they are risky if you do not have savings to use if you get stuck on a high rate.

J_B.

curlyboy

thanks guys need to get out of the overdraft - starting when my shares go into my account in Febuary

I didnt know that it shows as a red flag Ive lived in my £1500 overdraftevery month for the past 4 years sometimes even when my wages go in im still over drawn by £100.00. so that will go against me then ?

Thrugelmir

curlyboy wrote: »

thanks guys need to get out of the overdraft - starting when my shares go into my account in Febuary

I didnt know that it shows as a red flag Ive lived in my £1500 overdraftevery month for the past 4 years sometimes even when my wages go in im still over drawn by £100.00. so that will go against me then ?

Start tackling the overdraft now. As the sooner its gone the quicker your credit rating will improve. 6 months of hard graft will pay immediate dividends.

As you are living month to month it will only take one unexpected event to turn the situation into a major crisis. From there things can quickly spiral out of control. Making the road to recovery even longer.

hcb42

take the next two years to clear off the CC debt without paying the ERC and when 2014 comes around you will be in a much better position to get a new deal.

deedee71

Given the new revelations about the overdraft, I can only agree with the above - pay down the ccs, live within your means and by 2014 you'll be in much better shape.