What Options Are Open To Us ?

Fishingtime

bandos2007 wrote: »

The one positive is that £130 per month hp on a car ends in december. We have told the lender about the hp finishing, though we would prefer not to commit all of it to the mortgage arrears. Can anyone advise what additional monthly figure is likely to be accepted by the lender?

I pity you in your situation but only paying £1 a month off a 4.5k mortgage arrears looks like you are fighting a losing battle

bandos2007

We are currently only paying £1 per month off the arrears but will have £130 per month to take into consideration at the end of the year, question is how much of that £130 would we have to commit to paying off the arrears for the lender to find it acceptable?

Fishingtime

Well at £125 a month I work it out that it will be 3 years before you repay the 4.5k.
I suspect that they would expect at least that much

bandos2007

If we add the arrears of £4.5k on to the mortgage which runs until 2021, currently paying £696 based on fixed rate of 5.63% what will this add to our monthly payment?

Meeper

Why don't you ask your lender?

getmore4less

bandos2007 wrote: »

thanks for all the replies.

The current value of the property is approx £150,000.

We have about £20k of other debts.

The one positive is that £130 per month hp on a car ends in december. We have told the lender about the hp finishing, though we would prefer not to commit all of it to the mortgage arrears. Can anyone advise what additional monthly figure is likely to be accepted by the lender?

The lender has basicaly given you the minimum which is adding it to the loan which pays it off over the current term

bandos2007 wrote: »

We are currently only paying £1 per month off the arrears but will have £130 per month to take into consideration at the end of the year, question is how much of that £130 would we have to commit to paying off the arrears for the lender to find it acceptable?

Ditto

bandos2007 wrote: »

If we add the arrears of £4.5k on to the mortgage which runs until 2021, currently paying £696 based on fixed rate of 5.63% what will this add to our monthly payment?

You thanked my post above so asume your read it in that I said £40pm
(Just stick £4.5k into a mortgage calculator)

problem is you need to get through 3 months before that money is freed up

With £20k of other debts this is more than just a mortgage problem you need to look at te bigger picture

what rates, terms etc are these other debts.

You have 13 years before 70 you need a plan to become debt free.
your lender has given you a lifeline on the mortgage if you can get through to Dec, cancell any Xmas spending.

How much is the car worth, could you sell that and get something cheaper,anything else you can sell.

What is the income expectations between now and 70?

Do a SOA and visit the debtfreewanabee board.

getmore4less

Just realised there is something not quite right here.

You say the current mortgage is 2021, (which month?)

But a £76k mortgage @ 5.63% paying £696 is a term of around 13years(154months) which is Aug 2024

Now in 20 months(June 2013) if rates don't rise you will be on BMR so 2.5% which will help.

If it is say nearer 10years then the £4.5k will be nearer £50pm extra

bandos2007

The mortgage is june 2021, we are paying £696 because we had a payment holiday and a period of reduced monthly payment when I was out of work.

If as you say by adding the arrears on to the end of the mortgage it would be around £50pm extra, that is probably the road we will go down, will speak to the lender and get a figure. Will also do SOA and visit the debtfreewanabee board as recommended.

Thanks for all the responses.