my poor mum & dad

hannahsmummy1

Thats the thing snaggles- im not really sure as i dont understand how remortaging works- so i dont really know -and im not sure that mum really understands either to be honest. They have tried to apply for credit elsewhere and been turned down to just get a loan for what they owe- to pay it off- and natwest offered them 8k as a loan- but they would still have the other loan and still not paid off their credit cards so they decided against getting a loan with natwest and have just puddled along since then- now natwest have said they can remortage with them,but as i say i dont understand it at all!

Snaggles

To use round figures for easy - say if your Mum and Dad owe £50k (just plucked this figure out of thin air) on their mortgage at the moment (which I think you said was with Abbey?), whoever they are remortgaging with will lend them enough to repay this, plus some extra (sounds like an extra £38k from what you said).

So when the new mortgage is opened (drawn down), the new mortgage company will pay abbey £50k and give your mum and dad £38k, so their new mortgage will be £88k.

If they only actually need £18k extra for the debts, they could borrow the £50k to repay abbey, and £18k for the debts, giving them a total mortgage of £68k. That way they aren't borrowing (and paying for) more than they need.

Hope that makes sense (heavily pregnant & brain not working too well )

Broken_hearted

Sit your mum down and explain that getting into debt for a wedding was a bad idea. That all the trimmings were things you chose to have and you will have to pay for them. Tell her its not a problem just a slight setback.

hannahsmummy1

snaggles- get it now! Thanks for explaining it to me- i had a feeling it was like that! I will speak to her tomorow-she is at work now!

Brokenhearted- i am paying for my wedding-i was the one who got into debt for it (my stupid fault i know!) So im paying it off! They are in debt from when they remortaged and paid their cards off- they have maxed them again & got another loan out- so the remortage is to pay this off- mum was upset because she would like to help (havent asked her to btw) but cant due to their circumstances.

Snaggles

I hope I've understood it right, but if it's any different and you want someone to look over the figures, I'm quite happy to, just give me a shout (I worked in the mortgage department (processing, not sales) of a large bank for 3 years and now a mortgage/lending underwriter (when not on maternity leave!).

Bestthingsinlifearefree

Hi,

I think your parents should join MSE and post an SOA BEFORE they borrow more money / remortgage.

If they are in deep debt remortgaging / borrowing more is unlikely to be the best way forward.

At least if they post SOA here they can explore all their options and get neutral, free advice.

Bestthingsinlifearefree

hannahsmummy1 wrote: »

well i have been on the phone to my mum and dad today, my dad went to the bank yesterday and they said they would be willing to help him, and that remortaging was an option- so he has to get all his statements etc from his credit card and my mums 2 cards and the one loan they have-which is also around 9 k, this all comes to 18k my mum has said. Think this has been their lightbulb moment.

If they are borrowing money on the mortgage to pay of debt. They are not paying off ANY debt just moving the debt around and converting unsecured debt to secured debt i.e they are putting their house on the line.

i.e they are consolidating which does not address the main issue of living beyond their means.

This is not a light bulb moment.

I wish them well.