Bad advice now we are suffering

Little_Miss_Magic

Welcome 22000 int 1.8% pm 400 per month 10 years
loan secured
Taken out 12/05

This apr isn't right i don't think.

£400 per month for 10 yrs (120months) = £ 48,000:eek: :eek: :eek:

hypno06

You say that you are unable to sell the house in the south for the asking price. What is its current realistic selling price and would it be better to consider taking a drop on the asking price rather than the risk of renting it out?

I would suggest a brainstorming session with pad of paper, pen and a couple of drinks to really thrash out where the money is going. Every expense, whether for one house or two, right down to the small expenses such as coffees and newspapers, petrol etc. You will be surprised at where the money goes and can then make adjustments once you know what you are working with.

livinginhope

The only way to cut this back is,check you have the best mortgage deal and that you have shopped around for life/car/house insurance.
Are you finding that you don't have £800 left at the end of the month? if so,try a spending diary and you will see where your money is going,then you could cut back on anything unecessary.
Good luck,sorry I can't help much.
LIH

elantan

if you want to make it tighter then it's a case of cutting back on food (go to the os board fantastic for this kinda thing) get rid of sky (dont know what the £250 to all clear is for) but cut that back if poss keep a spending diary so you know exactly where the money has went and review this every month ...but i think you look ok to me ...wish my gas and elec was as cheap

waterman17

All
Thanks for the replies
I have tried with the main Mortgage people and they have said they could not help-hence the posting on this board
We would like to sell the house at that price to clear the loans
We were hoping for some magic formula from anybody in this forum to assist
Appreciation goes to you all

Kaz2904

waterman17 wrote: »

My SOA

Below is a rough template;

Monthly Incomings:

My salary - £2,100
Partners salary - £500-700 depending on hours
Benefits - £100
MOD pension £500
Rent £500 this is form our property in the South which we cannot sell for the asking price of 170000 so we were adviced to rent it out

Total - £3600 approx

Monthly Outgoings:

Mortgage/Rent - £900
Loans £290 & £450 Are these the minimum payment? what is the apr and balance and term left to run?
Council Tax - £100
Gas - £20
Electric - £20.53
TV License - £10.99 this should be 11.37 I think.
Sky £45.99 can you afford this?
Phone - £20 does this include your internet?
Food - £100 seems low?
Car Insurance - £16.00
Petrol - £10 seems low- do you actually need the car?
Life Insurance £20
My partner pays Allclear £250 what is this?
Rent £550 we are in rented property in Cumbria due to Job re-location

Total: £2,800

I await your responce

You haven't said why you have so much debt- is it due to regular overspending or financial disasters like house blowing up or something? Not being nosy but it may help. You should have £800 monthly to spare so then need to work out what order to repay your debt as you should be overpaying to get these down. Try going to https://www.whatsthecost.co.uk and go to the snowballing section. This will give you an idea of what is the best order to repay in. I've put my queries in bold italic to highlight them.

kathfisch

Little_Miss_Magic wrote: »

This apr isn't right i don't think.

£400 per month for 10 yrs (120months) = £ 48,000:eek: :eek: :eek:

I wouldn't be surprised... given some of the small print I've seen on tv adverts lately... along the lines of borrowing £25,000 and paying back a total of £47,000 :rolleyes:

Curious_Moose

Rent of £500 pcm on a (approx) 170k house seems very low. Can't you increase it? Also, is the lender aware you are now renting out the property and not living in it?

waterman17

Yes
The lender is aware
Allclear is a company that assist with paying of debts
I will look to increase the rent -we are going to put the house back on the market in April/May
Ref the loans see right at the top that is the balance left and the ApR
Of course i will visit Snowball

I have pasted the figures again for all to see
House value 170000

Mortgage 150000 int 7.33% 900 per month 22years
Loan U/secured 17000
Taken out 03/05

Welcome 22000 int 1.8% pm 400 per month 10 years
loan secured
Taken out 12/05

Endeavour 13000 int 10.9% 290 per month 10 years
loan secured
07/05

I have had from you all more advice on this forum that from anywhere else
You all have our regards

livinginhope

How much debt are you repaying through Allclear? do they take a charge from your repayments?