Help and advice about raising money with a mortgage/loan

lozzie103

Hello
After a disasterous relationship I now have about £25k of debts. Unfortunately my Mum died just as everything was going pear shaped. The only silver lining in very dark times is that my Mum has left me a house (I'm living in it at the moment as I have nowhere else to go) though things haven't been finalised yet re: her will etc and it isn't technically mine yet.
I have started to get my life back on track again and am working and I have started a DMP with Payplan.
What I would like to know is if it would be possible to borrow against the house (either a mortgage or secured loan) so that I could repay my debts and start with a clean slate and only one repayment to make? Would anybody lend to me in my current situation and if so can I have recommendations of who to approach as there seems to be a lot of sharks out there! I really don't want to have to sell the house if possible as I would then just have to rent somewhere and I am getting settled here and also have two dogs which could make things difficult.
The house is worth approx. £105,000, I earn £10140 basic but do overtime every day (though this isn't guaranteed but is always available) and would like to borrow £20-£25 to try and clear everything.
Sorry for the length of this post and thanks in advance for any advice!

Dave_Ham

There will be solutions given the equity available.

Firstly and most importantly grieve for your Mother. I am unsure how recent this tragic event is, although if required you can access some of Mum's money for funeral expenses (if needed)

In terms of solutions, would depend upon what stage you are up to on your credit. When defaults/CCJ's were placed and for how much?

There will be a solution, although try and get a recommendation as the products will be expensive to you given your circumstances and you do not need a greedy broker eating into your equity further.

See a reputable broker and they can work through this with you, although you will need to Will finalised and the transfer to have taken place...

You will also have to ensure a specific lender is used as some will not like the new ownership and immediately raising funds... They have a 6 month ownership rule.

You are doing the right thing addressing your debts and this is a good forum to get some friendly help..

Thrugelmir

Any possibility in downsizing the property to something cheaper to enable you to clear your debts.

getmore4less

Don't rush into a secured loan on the house and put that at risk if job security is an issue.

Might even be worth looking at delaying assention of the house that needs cooperation of the executors.

Low income with a house to run, probably qualify for some benifits.

DMP are they going to freeze interest and allow affordable payments.

credit rating risks are much reduced if you don't need lending to buy or deposits for rent.


I would look for broad advice on the options and not jump at the obvious.
Borowing/consolidating is not always the correct solution.

You need to get back on your feet with a steady income to service a debt.



35hr week min wage is over £11k gross more than you standard wage,

With no rent/mortgage you can tackle the debt on the DMP(assuming interest frozen) faster than with a mortgage.