£75k+debts

clovis_2

Hi,

Just wondered if anyone could advise on my situation. I have spoken to payplan and have the 2nd detailed meeting next week, but I keep running things over and over and just wanted to ask some questions.

Debts on cards and loans etc are about 75k
+ a HP loan owing about 8500 on that
needless to say the monthly payments are now unaffordable (guess they have been for a long time but been doing the ostrich trick)

monthly inc 2800

I don't think I need to add more details at present because the question is more to do with equity.
We have a high mortgage 268000, paying 1100 a month (interest only) but that still leaves over 257k equity /2 = 128.5k each. More than enough to pay the debts, but the mortgage we have is the maximum possible thru a broker.
Is it correct that this would put an IVA out of the question because they could force bankrupty and get all the money, trouble is how could I release the equity to pay up without going for a dodgy secured loan?
I guess payplan will explain, I just wanted to ask now. Any advice greatly appreciated, and we are considering moving but been trying to find somewhere for a while, the market is a bit dead it seems.

Thanks.

immoral_angeluk

Have you consider downsizing your house (and mortgage). That way you can get a new house and be able to pay off your debts.

rog2

I agree with IA, but perhaps it would be better if you posted a full SOA (statement of Affairs) detailing Income, Expenditure and Debt, then we would be better placed to give you some advice.

Bestthingsinlifearefree

Am I right that you owe about 85K but have 250K in equity in your property.

Surely just sell the house pay of your debts and rent / buy something cheaper, live within your means and the problem is solved.

Or am I missing something?;)

You have a good income. How have you racked up this debt. Have you addressed your spending?

Why not post an SOA?

I wish you well.

clovis_2

immoral_angeluk wrote: »

Have you consider downsizing your house (and mortgage). That way you can get a new house and be able to pay off your debts.

Yes we have considered and still are considering that, but trying to find a property locally (20 mile radius) is proving difficult at present. I feel that there does not seem to be much movement in the market at present and hardly any new properties are coming on stream. If we find a house then that's what we'll do, but at the moment, we are stuck. We don't want to buy just anything to get out of this, the costs of moving would be about £30k in themselves, what with agents commission and government taxes.

I'll get an SOA on here, I am trying to get it al together for the payplan meeting.

It's just that nagging question about the equity for now though.

cheers

clovis_2

Bestthingsinlifearefree wrote: »

Am I right that you owe about 85K but have 250K in equity in your property.

Surely just sell the house pay of your debts and rent / buy something cheaper, live within your means and the problem is solved.

Or am I missing something?;)

You have a good income. How have you racked up this debt. Have you addressed your spending?

Why not post an SOA?

I wish you well.

Good question.

The debts have racked up cos we increased the mortgage to get the house extended, its a very old house and has really cost far more than we ever expected to get it in a reasonable condition. THe equity is high now because of the house price inflation and also because of the work that has been put in, including extending etc...

Then of course we consolidated before, but didn't cut the cards up, and now it's just too much.

You are right we haven't addressed the spending, although now I hope that the message is getting home.

I feel that I have accepted that we just need to sell up and move, but that's only half the battle, if you understand my meaning.

Bestthingsinlifearefree

clovis wrote: »

Yes we have considered and still are considering that, but trying to find a property locally (20 mile radius) is proving difficult at present. I feel that there does not seem to be much movement in the market at present and hardly any new properties are coming on stream. If we find a house then that's what we'll do, but at the moment, we are stuck. We don't want to buy just anything to get out of this, the costs of moving would be about £30k in themselves, what with agents commission and government taxes.

I'll get an SOA on here, I am trying to get it al together for the payplan meeting.

It's just that nagging question about the equity for now though.

cheers

Hi Clovis,

Why not sell and rent for a bit? You will then be a cash buyer (with a big deposit). The 175K cash left over after clearing your debts will earn you a good chunk of interest, plus it is often cheaper to rent than buy.

Have you got any repayment vehicle in place for your mortgage? i.e as it is interest only you are not reducing the capital / overall debt.

Bottom line can you afford the house? Bottom line have you really addressed your spending behaviour.

The good news there are lots of ways forward, first step is an SOA.

Otherwise we are advising you blind.

Good luck.:beer:

[Deleted User]

If its hire purchase then give the car back. If your home to work is a meagre 20 miles then thats easily cyclable.

You still havent detailed the loan situation or your credit card situation whats on what at what percent and is it flexible/overpayable, whats the monthly repayments etc.

Moving house doesnt cost 30K it cost me about 3k to buy a stamp duty exempt house, 440 solicitors fees (fixed price), 450 mortgage fee, 500 homebuyers survey, may be other things I have forgot.

Depends were you live if there are 120k houses near you then its an option if you live in london its not an option.

clovis_2

Yant1 wrote: »

If its hire purchase then give the car back. If your home to work is a meagre 20 miles then thats easily cyclable.

You still havent detailed the loan situation or your credit card situation whats on what at what percent and is it flexible/overpayable, whats the monthly repayments etc.

Moving house doesnt cost 30K it cost me about 3k to buy a stamp duty exempt house, 440 solicitors fees (fixed price), 450 mortgage fee, 500 homebuyers survey, may be other things I have forgot.

Depends were you live if there are 120k houses near you then its an option if you live in london its not an option.

It's an 85 mile round trip to work, costs over 200 a month in petrol let alon the runnign costs.

Well there are five of us, and a small 3 bed place would be at least 300k where we live, so the costs are substantial, but thanks for the input.

Bestthingsinlifearefree

clovis wrote: »

Good question.

The debts have racked up cos we increased the mortgage to get the house extended, its a very old house and has really cost far more than we ever expected to get it in a reasonable condition. THe equity is high now because of the house price inflation and also because of the work that has been put in, including extending etc...

Then of course we consolidated before, but didn't cut the cards up, and now it's just too much.

You are right we haven't addressed the spending, although now I hope that the message is getting home.

I feel that I have accepted that we just need to sell up and move, but that's only half the battle, if you understand my meaning.

Hi Clovis,

I posted my last post before reading this one.

We need the SOA. Then it can be possible to determine whether it is possible to increase income and cut costs and keep the house.

Or whether it is better to sell and regroup.

The implications of an IVA or other agreement on your house are very important to undertand BEFORE you enter any such agreement.

I understand fully the natural psychological and practical reasons why you may not want to sell up (including transactional costs / hazzle etc).

You are still in control of your own financial destiny at the moment. If you take action now we can keep in that way.

SOA..........pleazzzeeeeeee;) e

clovis_2

Bestthingsinlifearefree wrote: »

Hi Clovis,

I posted my last post before reading this one.

We need the SOA. Then it can be possible to determine whether it is possible to increase income and cut costs and keep the house.

Or whether it is better to sell and regroup.

The implication of an IVA or other agrrement on your house are very important to undertand BEFORE you enter any such agreement.

I understand fully the natural psychological and practical reasons why you may not want to sell up (including transactional costs / hazzle etc).

You are still in control of your own financial destiny at the moment. If you take action we can keep in that way.

SOA..........pleazzzeeeeeee;) e

OK

will do but I'll be back in a while, need to gather everything for payplan and can post here too,

thanks everyone,

(P.S. I think we need to just move, but I need to convince someone else too)