Help!

wee_den

Ive managed to mess everything up!

My mortgage is due for renewal in two months and I went to the bank to negotiate and because of the loans & credit cards I have they want to extend it from 14 years to 19 years and I am now in a major depression.

Ive tried to get a loan to consolidate my debt, I need around £15k over 5 years and I know I can cope with this without exceeding my overdraft as my current debt is costing me around £500 a month (excluding my car which is another £280 a month but still have just under two years left on that)

My earning are £36k with an additional £4.2k car allowance and no-one will give me a loan!

My other downer is that my house is of BISF construction which limits me to two mortgage lenders!

I seriously would be better off not here but this is not an option as I have two kids (one 20 and one 10 and the 20 year old is in full time ed and just costs me money) and I am a single parent.

Any advice would be gratefully received.

wee_den

NeverEnough

Oh dear, well you won't be the first or the last to have made a bit of a muddle of your finances.
If you cannot get a remortgage now that your existing deal is ending, just stick with your lenders standard variable rate for the time being - you surely do not HAVE to remortgage?? And then do your utmost to bring your debt levels down - lenders have tightened up a lot on what they will lend now, and generally if you have debts of around 50% of your income or more, you will srtuggle to get further finance. If you work at the £15K debt you have mentioned, and bring that down a lot, you will be in a much better position re the remortage.

If your mood is low and you are feeling very stressed about this, please see your doctor before you do anything silly - glad your children are a protective feature in this regard, but one can feel very trapped and lonely in such situations. If your debts are too much to handle, although you say you are keeping on top of them, please seek advice from a free service like CCCS or CAB.

Best of luck and try to bring the debt down rather than looking to remortgage if possible -

DCFC79

Ill copy in a reply I posted earlier

1. forget the consolidation idea as unlikely to happen since your own bank wont contemplate it

2. make cut backs from mobile phone bill to grocery shopping

3 better still, complete an SOA and post it here will take care of number 2, the posters on teh DFW board will look at the SOA and give you tips what you could cut down on.

4 be honest when filling in the SOA

the SOA is linked to in the reply by clapton here

You might want to cut up the credit cards as well to prevent more spending so maybe do this first.

DCFC79

wee_den wrote: »

Ive managed to mess everything up!

My mortgage is due for renewal in two months and I went to the bank to negotiate and because of the loans & credit cards I have they want to extend it from 14 years to 19 years and I am now in a major depression.

Ive tried to get a loan to consolidate my debt, I need around £15k over 5 years and I know I can cope with this without exceeding my overdraft as my current debt is costing me around £500 a month (excluding my car which is another £280 a month but still have just under two years left on that)

My earning are £36k with an additional £4.2k car allowance and no-one will give me a loan!

My other downer is that my house is of BISF construction which limits me to two mortgage lenders!

I seriously would be better off not here but this is not an option as I have two kids (one 20 and one 10 and the 20 year old is in full time ed and just costs me money) and I am a single parent.

Any advice would be gratefully received.

wee_den

Forgot to quote it

ed110220

wee_den wrote: »

Ive managed to mess everything up!

My other downer is that my house is of BISF construction which limits me to two mortgage lenders!

wee_den

Unless things have changed radically since I bought my BISF house in December, I don't think it's correct that only two lenders will lend for BISF houses. I found all the major ones I asked (Nationwide, Santander, Woolwich, Halifax) would provided it did not have the original asbestos roof, though Halifax would accept asbestos roof too.

rartherinv

Hi

40k salary, 2 children, own house... it seems your glass is very much half empty if an extended mortgage repayment period makes you want to end your life.

Millions of people can't find employment, can't have children, can't afford to buy a house or maybe don't even have anywhere to sleep.

If you are really depressed about this minor inconvenience to your life you should really see a doctor or take a step back and appreciate what you have achieved and are achieving in your life.

bargainbetty

wee_den wrote: »

Ive managed to mess everything up!

My mortgage is due for renewal in two months and I went to the bank to negotiate and because of the loans & credit cards I have they want to extend it from 14 years to 19 years and I am now in a major depression.


Any advice would be gratefully received.

wee_den

I consoldiated debt onto loans twice. Ran up the cards again both times. Until I got my head out of my backside and looked at why and how I was overspending, and got that under control, it was only going to get worse. I'm finally debt-free (apart form my mortgage) for the first time in my adult life.

Let them extend the mortgage if you can't deal with the variable rate for a while, but be sure you can make overpayments when you can afford it. Focus on bringing down your expenditure, and throw all your saved money at the other debts that you already have, rather than refinancing onto fixed term loans. When they are cleared, you can bring your mortgage term back down by overpaying that too.

It's not easy, but it's honestly the best way. Live within your means. If that means cutting back on things then, sorry, that's what you need to do.

Try posting up a statement of affairs and people will help advise you on where you can save money. If you don't want people to see it, at least do it for yourself and make an honest budget to live by.

Good luck

wee_den

I have been to two independant financial advisors and all they are offering is Halifax and BOS (which is really the same thing) and no others will touch it, there is no asbestos in the roof as the house was completely renovated about 30 years ago when it was still a council house.

ed110220 wrote: »

Unless things have changed radically since I bought my BISF house in December, I don't think it's correct that only two lenders will lend for BISF houses. I found all the major ones I asked (Nationwide, Santander, Woolwich, Halifax) would provided it did not have the original asbestos roof, though Halifax would accept asbestos roof too.

wee_den

I did not say I was going to end my life, just low enough to feel it.

I have stated facts for help and advice, not to be judged.

I know how lucky I am with what I have but you know nothing about how hard it has been for me to get to where I am and maintain it.

Thank you for your reality check but I am dealing with reality and my reality is every day items and goods are going up and up and my income is standing still, I have a daughter to put through college and Im doing it all solo. I dont want a pat on the back for what I do, Im struggling and looking for answers from people who have been there or have experience of assisting people like me.

rartherinv wrote: »

Hi

40k salary, 2 children, own house... it seems your glass is very much half empty if an extended mortgage repayment period makes you want to end your life.

Millions of people can't find employment, can't have children, can't afford to buy a house or maybe don't even have anywhere to sleep.

If you are really depressed about this minor inconvenience to your life you should really see a doctor or take a step back and appreciate what you have achieved and are achieving in your life.

Vikipollard

Hi

Didnt want to read and run, and dont have a huge amount to add, other than to echo what has been said about posting an SOA.

The clever (and some might say gentler) people on the DFW board will help with pointing out bits you can cut back on, then rather than borrow money, do the snowball thingy and throw all your spare cash at the debt with the highest interest.

The very best of luck

DevCoder

Vikipollard wrote: »

The clever (and some might say gentler) people on the DFW board will help with pointing out bits you can cut back on, then rather than borrow money, do the snowball thingy and throw all your spare cash at the debt with the highest interest.

Posters on the loans forum (such as DCFC, Apples etc) are just as clever with their advice, they just approach it from a different angle.

I often view the loans forum as a person who hasn't had their LBM as first resort, then once they have had it explained to them in plain and simple terms then they have two options

Ignore the advice because its not what they want to hear, these people do not post on the DFW
Take on board the advice even if it causes them some hurt in realising their situation, they then go to DFW where those people do their magic.

I do realise some go straight to DFW but the loans forums is often a judge of character as to whether a user is prepared to make the sacrifices.

I think users in both forums who help people for no reward are a credit to the moneysaving forums.