Mortgage and CCCS support

IwtbDebtfree

Hi, first post, so please bare with me.....

Having been a long time reader of the forums I now have my own dilema that I need soome help with....

For the last few years we have been working through a DMP with CCCS having managed to rack up over £40k in credit card debt, along with a £250k mortgage and a £60K second mortgage, life was very tough for a long time, thankfully we are beginning to learn to budget !!! after all this time !!!...

My problem is there is never enough to get us through the month, and we are beginning to get back into bad ways....

We now have £25k in payments with CCCS that should end in 2014 with our current repayment rate, the mortgage is down to £189k, whilst the second mortgage is down to circa £40k.... so definately in the right direction....

My question here is does anyone know of a mortgage seller / deal that would take on the above with the property as security, i.e. a remortgage deal that would settle all my debts.....?

Joint income is approx. £85k per annum (pretax), working out as a monthly income of approx £4,100 monthly outgoings are mortgage £1200, CCCS payment £725, second mortgage £600... with the rest on bills for a family of four... Property value although difficult to judge at the moment is circa £300k....

Any advice would be greatly welcomed....

Mike
IwtbDebtFree
(I want to be Debt Free)

kingstreet

TBH I'd take this to an independent or whole market broker to go over all the issues with you. The likelihood of you finding a new lender is likely to fall on the state of your credit file. If there are defaults, judgments and mortgage arrears you'll struggle. The DMP will also be an issue for some lenders.

In addition, how long ago things were registered will have an impact.

I suggest you obtain copies of your statutory credit files from all three CRAs and take them to a meeting with a broker.

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml

Experian

https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=register_display&tpl=regPurchase

IwtbDebtfree

Thanks for the reply, bizzarly (IMHO) our credit rating on Experian is excellent as we have not missed any payments during the two years of being on CCCS DMP.

Will try and find a local independent, does any one have any recommendations in the Berkshire (Bracknell / Wokingham) areas ?

kingstreet

Ask friends and relatives for a recommendation. Failing that, try;-

https://www.unbiased.co.uk

switching off the "website only" option to give you a better list for your area.

Try to ignore the "scores" given by CRAs. They are indicative at best and can give false security. Lenders require information over and above what the CRAs know about us and get a fuller picture before deciding to lend to us.

DVardysShadow

Take your problem to the DebtFree Wannabe forum. They will tell you what is wrong with consolidation, which is effectively what you are doing. You say

My problem is there is never enough to get us through the month, and we are beginning to get back into bad ways....

The likely truth of the matter is that by increasing your mortgage, you will not need to face your bad ways for a while longer. Believe me, you need to get on top of your bad ways.

IwtbDebtfree

Agree with the bad ways observation, honestly after two years of DMP they are a lot better than before, we now know where every penny goes !! More an observation that even with budgeting sensibly Christmas still happens, Kids still have secondary school trips to pay for etc... budgetting an affordable £20 a month doesnt cover the £700 bill a year (on the trips alone)....

My preference is to merge teh two mortgages and retain the DMP / credit card debt payments to try and reduce the monthly debt payments, and to speed up DMP payoff by putting more in that direction....

Mike

DannyboyMidlands

A remortgage won't settle your debts it'll just mean paying them off over decades and getting charged a shedload of interest.

If there is equity in the house why not simply sell, downsize and pay off debt with the difference.

You earn good money. It's your spending that is out of control - still.

kingstreet

DannyboyMidlands wrote: »

A remortgage won't settle your debts it'll just mean paying them off over decades and getting charged a shedload of interest

I can see his point about remortgaging the main mortgage and the second charge. If they're both already over long terms and he can combine both at a better rate over the same term, he's freeing up money currently spent on mortgage payments to increase the payments to satisfy the DMP earlier.

I agree completely with what you say about spending patterns.

The effectiveness of the action under consideration is also going to hinge on the rate he can get for the remortgage. It's definitely going to be higher than high street, so it may well not work if his current £189k is on a decent residential rate.

Thrugelmir

IwtbDebtfree wrote: »

... budgetting an affordable £20 a month doesnt cover the £700 bill a year (on the trips alone)....

That's the root of your problem. Debt consolidation isn't the answer.

Maybe sell up , rent and rebuild your lives.

Paying on time doesn't constitute a good credit risk to a lender. So don't kid yourselves.