Stuck in a rut

Hariboy23

Hello,

I am hoping for some advice or help please?

3 Years ago we entered into a fixed rate mortgage and have recently come out of this rate and reverted to the standard rate of 4.99.

I have contacted my current provider and also one other to enquire about re-mortgaging and adding on a £10,000 personal loan that i had to take out. Due to a change in circumstances (my partner has a reduced wage as of 2 years ago) we do not come out favourably on the "affordability" test, with most of this coming down to the fact that we pay childcare with "Child Tax Credits", however these are not allowed to be taken into account as income. I am now stuck with a monthly payment of the loan plus mortgage that is simply too high. I can refinance the loan (it completes in under 3 years), but the bank told me that if i do this i cannot apply for a mortgage within 12 months.

Does anyone have any advice as to how to proceed and is it possilbe for me to get a new mortgage, or am i stuck with the SVR and sorting out the loan until it expires?

Meeper

Mistake # 1 - taking out the loan when it was plainly unaffordable in the long-term
Mistake # 2 - trying to do everything with your bank
Mistake # 3 - posting on here instead of finding an independent adviser who can take all of your circumstances into account and find an appropriate lender from the wider marketplace.

Mistakes 1 and 2 are past. You can still correct mistake #3 - good luck.

Hariboy23

Although its hard to admit mistakes and hard not to try and justify them here and simply form an argument. I thank you for your comments. I have woken up to my current financial sutuation and am making changes. i have never considered an indepentant financial adviser, and obviously from your signature you have some form of vested interest, in complete neutrality can you point me in the right direction, i.e can these be found in the yellow pages etc?

My current thoughts were to try and put the loan onto a credit card and try to clear as much within the 20 months interest free period then do a swap. i'm guessing this will alarm many posters on here, but i'm just trying to be as open as possible. If there are other mortgage options open to seperate finance advisers i guess this is the first port of call?

Meeper

I don't have any vested interest at all, unless you happen to be in my area and find me when you look at unbiased.com, which is the standard search engine for finding an adviser with the relevant specialities in your area. Better would be word-of-mouth recommendation, however.

Your thoughts on what to do with the loan - quite right. Rather alarming.

Visit an adviser as a first port of call and see how you get on.