secured loan needed, any advice?

pcbm2007

complicated situation ! i work p/t so my wifes wages and mine were not enough to get our mortgage so we got one using hers and her mothers wages. we would now like to get a secured loan £25,000 with same company (abbey) this is basically to clear debts on unsecured loan and ccs. these are mostly my debts.my question is would we be more likely to get loan by applying with my wife and her mother and keeping me and my debt out of equation or would it not matter. i hear alot of horror stories about secured loan companies but basically we have nowhere else to turn, if we dont get this i am reluctant to go and get an extortinate loan rate of the other companies. so it could be me out the door and heading to bankruptcy.

Uncle_Fester_2

Why don't you try a remortgage with the Abbey?

How much capital do you have in your home?

As they will base their lending on this! for both app's Secured Loan or Remortgage.

millsee

There are very few situations where borrowing your way out of debt actually works. In all likelihood, you will end up paying much more back in the long-term.

Can I suggest you pop over to the DFW, who may be able to advise you on other options that are available.

pcbm2007

i am reluctant to go down this road and realise i'll be paying more in long run but at the moment the stress of juggling money is making life unbearable. we only remortgaged with abbey in oct will they look at another remortgage this soon?, our current mortgage is for £130,000 and house is currently worth about £220,000.stessed out at minute i supose best thing to do is book appt and see what happens.

mountainofdebt

I'm going to be very blunt here (so apologies in advance).

You are in debt. At worse, if you default what's the worse that can happen? A CCJ?

If you transfer this UNSECURED DEBT into a SECURED DEBT the worst that can happen is that you lose your home.

No doubt being in debt is stressful but its a hell of alot more stressful to lose your home.

Aso you run the risk of Abbey smelling that somthing ever so slightly dodgy has gone on when you got your mortgage ( I take it that your MIL has no stake in your home other than the mortgage?)

As already been suggested pop along to the debt free wanabee board and post all your details of income, debts and aprs and we can see what we can do.

Unless you are willing to at least look at all the options, you really are running the risk of digging yourself a bigger hole!

N79

I completely agree with moutain of debt. What you propose to do is almost certainly very unwise. Your situation is complex. Are you a joint "owner" of the house or are your wife and MIL on the deeds? Does you MIL guarentee the mortgage, in which case her house could also be at risk or is it a joint mortgage. I find it unlikely that Abbey would have provided a joint mortgage to you wife and MIL unless they (and not you and your wife) were the joint owners of the house.

I agree that you should get over to the debt free board but I believe you should also seek expert advice from your citizens advice centre.

Good luck. Facing the problem is the first and biggest step to solving it.

N79

pcbm2007

my MIL and wife are only names on mortgage. i doubt if abbey will let us remortgage anyway as their wages only add up to £40k.i realise threat of losing home but to be honest its not a concern as i have turned corner and will not be accumulating any more debt ever again.i have been advised to go to payplan but i am very reluctant to go down this road as i am worried it will affect our abilitiy to remortgage when our current deal runs out with abbey next year, (would abbey just keep us on?)

Rafter

If most of the debts are in your name alone and your income is insufficient to service them, then get on the phone to payplan or the CCCS and see what your options are.

There is no point burdening yourself with more debt for 20 years if a IVA could make you debt free in 5 years.

As for your mortgage with Abbey, as long as you aren't in arears, you are likely to be able to transfer to a new deal when yours expires.

As it is the rate will probably rise because of the Bank of England Base rate rising so the last thing you need next year is a larger mortgage and a big secured loan payment.

Don't believe the tv ad's that suggest secured loans are the best way for you. The reason that the loan companies can afford all that TV advertising is that they make £000's out of each loan.

R.