Our SOA

ChefBungle

Hi Folks,

I've pasted our SOA below, any thoughts on it would be most welcome.

I've added a few comments below just to add some detail.

So as you can see, we are short of approx £191 per month for the debt repayments. What course of action do you think would be best? I'm not sure what we can really cut back on.

My girlfriend is due to get just over £3000 in a PPI reclaim, should come through any day now although it's Lloyds TSB!

I am due £5000 from my grandma's will once everything has settled. Again, should be any day now but I don't like to ask my Dad as it feels like I'm pestering him.

We've just moved in to an unfurnished house and some of the above money will be needed to buy furniture, but not all of it by any means.

Thanks,
Chef


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2177
Partners monthly income after tax....... 550
Benefits................................ 80
Other income............................ 150
Total monthly income.................... 2957

Monthly Expense Details
Mortgage................................ 293 (this is my ex-wife and I's house, which has been on the market for 2 years, I want to rent it out, she refuses so far).
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 50
Gas..................................... 150 (we have a gas-fired rayburn in our house which is only on just now because of the cold weather, but the heating is only on for 2 hours per day).
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 35
Mobile phone............................ 70 (2 x mobiles, still in contract)
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 260 (I have a 90-mile round trip each day to work just now, although get a travel allowance from work which is included in the income figures above).
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 374 (maintenance payment to my ex-wife)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 24
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2478

Assets
Cash.................................... 0
House value (Gross)..................... 120000 (estimated value of house in current market conditions)
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 123500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(293)......5
Total secured & HP debts...... 115000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Mastercard..............11000.....240.......16.9
RBS Credit Card................5200......110.......15
Car Loan.......................3500......130.......0
Loan...........................5000......150.......20
Catalogue......................550.......40........20
Total unsecured debts..........25250.....670.......-

Monthly Budget Summary
Total monthly income.................... 2,957
Expenses (including HP & secured debts). 2,478
Available for debt repayments........... 479
Monthly UNsecured debt repayments....... 670
Amount short for making debt repayments. -191

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -25,250
Net Assets.............................. -16,750

HappyMJ

ChefBungle wrote: »

Hi Folks,

I've pasted our SOA below, any thoughts on it would be most welcome.

I've added a few comments below just to add some detail.

So as you can see, we are short of approx £191 per month for the debt repayments. What course of action do you think would be best? I'm not sure what we can really cut back on.

My girlfriend is due to get just over £3000 in a PPI reclaim, should come through any day now although it's Lloyds TSB!

I am due £5000 from my grandma's will once everything has settled. Again, should be any day now but I don't like to ask my Dad as it feels like I'm pestering him.

We've just moved in to an unfurnished house and some of the above money will be needed to buy furniture, but not all of it by any means.

Thanks,
Chef


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2177
Partners monthly income after tax....... 550
Benefits................................ 80
Other income............................ 150
Total monthly income.................... 2957

Monthly Expense Details
Mortgage................................ 293 (this is my ex-wife and I's house, which has been on the market for 2 years, I want to rent it out, she refuses so far).
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 50
Gas..................................... 150 (we have a gas-fired rayburn in our house which is only on just now because of the cold weather, but the heating is only on for 2 hours per day).
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 35
Mobile phone............................ 70 (2 x mobiles, still in contract)
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 260 (I have a 90-mile round trip each day to work just now, although get a travel allowance from work which is included in the income figures above).
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 374 (maintenance payment to my ex-wife)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 24
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2478

Assets
Cash.................................... 0
House value (Gross)..................... 120000 (estimated value of house in current market conditions)
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 123500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(293)......5
Total secured & HP debts...... 115000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Mastercard..............11000.....240.......16.9
RBS Credit Card................5200......110.......15
Car Loan.......................3500......130.......0
Loan...........................5000......150.......20
Catalogue......................550.......40........20
Total unsecured debts..........25250.....670.......-

Monthly Budget Summary
Total monthly income.................... 2,957
Expenses (including HP & secured debts). 2,478
Available for debt repayments........... 479
Monthly UNsecured debt repayments....... 670
Amount short for making debt repayments. -191

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -25,250
Net Assets.............................. -16,750

If you have £8,000 coming to you then what's the problem?

Sort out your old property. Force a sale if you need to by reducing the price until it sells. Stop paying the mrotgage on it.

Why £180 in council tax...That's very high. Council tax for me is £1,150 per year band B that's £96 per month. £180 means you are in band F? Is that right? That's expensive for a rent of £600 per month.

Turn the Rayburn off.

Get rid of the £3,500 car and £3,500 HP that goes with and buy something cheap.

Swans1912

Why don't you suggest to your Ex-wife that buy renting the house out it provides something for the child/children when they are older? Have you asked your EA how much you would need to drop it by to get a quick sale - it sounds like it is on the market at the wrong price?

Simply put.. you can't afford that extra mortgage expense so time to sit down with the ex-wife or from the safe distance of a phone call and explain?

Its not possible to continue like this... your getting deeper and deeper into debt.

Swans1912

Is the mortgage repayment or interest only? Switch to interest only if possible.

ChefBungle

HappyMJ wrote: »

If you have £8,000 coming to you then what's the problem?

Doesn't solve the longer-term problem.

Sort out your old property. Force a sale if you need to by reducing the price until it sells. Stop paying the mrotgage on it.

Can't reduce it any further, it started at offers over 175k and is now down to fixed price of 120k, but the property market around central scotland is completely stagnant. We've had 2 offers which have both aborted at the last minute.

Why £180 in council tax...That's very high. Council tax for me is £1,150 per year band B that's £96 per month. £180 means you are in band F? Is that right? That's expensive for a rent of £600 per month.

We're in Band E. Only just moved in, so it's slightly higher until April next year.

Turn the Rayburn off.

Can't turn it off, otherwise we have nothing to cook on, no hot water and no heating in the house!

Get rid of the £3,500 car and £3,500 HP that goes with and buy something cheap.

It's an interest-free loan that I got through work, because of the mileage and job I do, I wouldn't be happy with a banger.

HappyMJ

iKennett wrote: »

Is the mortgage repayment or interest only? Switch to interest only if possible.

The interest on £115,000 @ 5% would be £479 per month the OP is paying £293. It's less than interest only. Anyway, no mortgage companies allow switch to interest only with no equity. You must have 25% to 40% or more equity to get an interest only switch depending on bank.

ChefBungle

iKennett wrote: »

Why don't you suggest to your Ex-wife that buy renting the house out it provides something for the child/children when they are older? Have you asked your EA how much you would need to drop it by to get a quick sale - it sounds like it is on the market at the wrong price?

EA says the price it is on the market for is very strong. Mortgage availability where the house is located is pretty poor.

Simply put.. you can't afford that extra mortgage expense so time to sit down with the ex-wife or from the safe distance of a phone call and explain?

We're not communicating at all, except through our respective lawyers. I've asked my lawyer to write to her's suggesting the idea of renting it out again, but whenever I have mentioned this in the past (last time about a year ago), she flatly refused.

Its not possible to continue like this... your getting deeper and deeper into debt.

HappyMJ

ChefBungle wrote: »

If you have £8,000 coming to you then what's the problem?

Doesn't solve the longer-term problem.

Sort out your old property. Force a sale if you need to by reducing the price until it sells. Stop paying the mrotgage on it.

Can't reduce it any further, it started at offers over 175k and is now down to fixed price of 120k, but the property market around central scotland is completely stagnant. We've had 2 offers which have both aborted at the last minute.

Why £180 in council tax...That's very high. Council tax for me is £1,150 per year band B that's £96 per month. £180 means you are in band F? Is that right? That's expensive for a rent of £600 per month.

We're in Band E. Only just moved in, so it's slightly higher until April next year.

Turn the Rayburn off.

Can't turn it off, otherwise we have nothing to cook on, no hot water and no heating in the house!

Get rid of the £3,500 car and £3,500 HP that goes with and buy something cheap.

It's an interest-free loan that I got through work, because of the mileage and job I do, I wouldn't be happy with a banger.

Defensive...though it might be.

What do you recommend to reduce your own spending then?

Don't want to sell at any price. Can't turn the Rayburn off because it's too cold and can't drive around in a banger...

Sorry I don't know what else to suggest.

ChefBungle

HappyMJ wrote: »

The interest on £115,000 @ 5% would be £479 per month the OP is paying £293. It's less than interest only. Anyway, no mortgage companies allow switch to interest only with no equity. You must have 25% to 40% or more equity to get an interest only switch depending on bank.

Sorry - the £293 I'm paying is my 50% share of the mortgage payment (total is £586 per month). It's currently on capital repayment, but the LTV ratio is probably something like 90% - 95% just now, so unlikely to get a new mortgage deal on it.

ChefBungle

HappyMJ wrote: »

Defensive...though it might be.

What do you recommend to reduce your own spending then?

Don't want to sell at any price. Can't turn the Rayburn off because it's too cold and can't drive around in a banger...

Sorry I don't know what else to suggest.

In terms of the unsecured debt - would a DMP be a realistic option for us?

HappyMJ

ChefBungle wrote: »

The interest on £115,000 @ 5% would be £479 per month the OP is paying £293. It's less than interest only. Anyway, no mortgage companies allow switch to interest only with no equity. You must have 25% to 40% or more equity to get an interest only switch depending on bank.

Sorry - the £293 I'm paying is my 50% share of the mortgage payment (total is £586 per month). It's currently on capital repayment, but the LTV ratio is probably something like 90% - 95% just now, so unlikely to get a new mortgage deal on it.

Is the £115,000 your share of the debt and the £120,000 your share of the capital? Or are they half as well? You are throwing away £293 a month for no reason. Reduce and sell.