Adding money to mortgage without remortgaging?? How do you this??

chantilly_bex

Hi everyone
I read in another post about someone talking to the RBOS about getting extra money added to their existing mortgage.
Could this work in my situation? Please see my previous post for details but basically in £22k worth of debt.
We have a mortgage with the RBOS and have never missed a payment.
Any advice please?

Debt_Free_Chick

You simply ask RBOS for a further advance.

However, you need to be aware that you are putting your house on the line for £22k of unsecured debt. Unsecured debt means that you are extremely unlikely to lose your house if you do not pay it off. There is a process ...

You cannot pay your unsecured debt. You make an offer to pay what you cannot afford. Your creditors will get you to leap through all sorts of hoops and they may agree to your repayment plan. If they don't they have to apply for a CCJ (County Court Judgment). This means that apply to the County Court to force to repay. The County Court ask you to respond. You send them a statement showing what you can afford.

In the vast majority of cases, the County Court will allow you to pay what you can afford. But, in a small number of cases, the County Court will order you to repay the debt, in full, immediately (this is highly unlikely if your financial statement shows you cannot afford it). If you do not pay immediately, your creditor goes back to the County Court and gets a Charging Order i.e. they get a Charge over your property.

I emphasise that if you cannot afford to pay the full debt, but can afford to pay in instalments, then the Court is likely to agree with you i.e. that you pay in instalments.

Now ... when you swap your unsecured debt for a further mortgage, you need to understand that if you fail to meet the higher mortgage payments, then the mortgage company can very simply and very quickly force a sale of your house.

So ... do not swap unsecured debt by transferring it to your mortgage if you can avoid it.

Instead, offer to repay your debt by instalments... this is known as a Debt Management Plan. There are "not for profit" companies and charities that will help you with this, for free. Other DMP companies charge you a fee. The free ones are

https://www.nationaldebtline.co.uk
https://www.payplan.co.uk
https://www.cccs.co.uk

HTH