Remortgage

MortgageMamma

I have had it Pm'd but I'm not going to disagree with you, I think the citizens advice may be a good port of call but he needs to be fully informed of all the options open to him

i,e, what his finances would be like if he remortgaged on a suitable deal without fee's being added

what he would be paying monthly if he sought debt counselling and made payment arrangements with creditors, and to lasting effect it will have on his credit rating

at the end of the day its his decision. but he needs arming with the facts - I just dont think we should really be pushing him in one direction or the other

peterjohnson007

future mortgages 78000, EDF secured loan 16000, credit card 1 1700 credit 2, 300, credit card 3 400
that is all
hardly big debt joe so why go down the IVA route, maybe i wantto settle these debts my own way and not be stuck for 5 years, as i understand you have lots of trouble getting a mortgage whilst on an iva am i right, wheres at least my way i can have the option in 2 years time to sell my current property have less debt because i dont use these cc anymore and will be able to get a house with any money i make from the sale of said flat and get a better interest rate because i didnt take out an IVA which i would be able to fix for a longer period and be financially better off that way???

Melissa177

I'm even more worried that Peter doesn't think 18K+ loans/CCs is a lot of debt!

MortgageMamma

In the long term that plan would be great peter, but your situation really needs scrutinising closely and a lot of thought - you need to talk through ALL your options - there is nothing harder than being in debt and struggling to survive particularly when you have got a young family, I know, I've been there. You have done the right thing coming on here and approaching us professionals. You are on the right track to getting this sorted out - and hopefully if you visit some other parts of the board such as the families board and the moneysaving old style board you will pick up more tips on how to save money - I've been on those boards quite a lot lately as I'm trying to cut down my food shopping bill and have just acquired a new pet which involves a lot of extra expense

JoeK_3

peterjohnson007 wrote: »

future mortgages 78000, EDF secured loan 16000, credit card 1 1700 credit 2, 300, credit card 3 400
that is all
hardly big debt joe so why go down the IVA route, maybe i wantto settle these debts my own way and not be stuck for 5 years, as i understand you have lots of trouble getting a mortgage whilst on an iva am i right, wheres at least my way i can have the option in 2 years time to sell my current property have less debt because i dont use these cc anymore and will be able to get a house with any money i make from the sale of said flat and get a better interest rate because i didnt take out an IVA which i would be able to fix for a longer period and be financially better off that way???

Peter, I have not suggested in any way that you should go down the IVA route, I have merely suggested that you got debt management help.

Incidently, how much is your house worth?

JoeK

MortgageMamma

Melissa177 wrote: »

I'm even more worried that Peter doesn't think 18K+ loans/CCs is a lot of debt!

Apparently its about average for a family these days - I suppose the level of debt you are in can only really be comparable with your earnings

i.e. someone earning 45k a year with 25k debt is better off than someone earning 10k a year with a 25k debt

peterjohnson007

it is a lot of debt i agree but the posts i have been reading is people owing 40 or 50 k to creditors which to me seems a lot
all im asking 4 is help. i dont want an iva and the 16000 loan is secured on my home and i dont wanna lose that either so all id be in iva for is 3 k worth of unsecured debt so i wouldnt qualify anyway would i???
i want to remain on the property ladder as its a good investment 4 the future

silvercar

From your previous post it looked like you were prioritising your unsecured debt to get the creditors off your back rather than the secured debt which is more important.

Securing the other debt, may make life seem easier in the short term, but costs more in the long term as the debt is repaid over 25 years and securing debt on your home is always a risk.

I can see your point in avoiding an IVA because of the damage it will do to your credit rating.

Downsizing in a couple of years is a different decision; if it makes sense then why not do it now?

peterjohnson007

peterjohnson007 wrote: »

it is a lot of debt i agree but the posts i have been reading is people owing 40 or 50 k to creditors which to me seems a lot
all im asking 4 is help. i dont want an iva and the 16000 loan is secured on my home and i dont wanna lose that either so all id be in iva for is 3 k worth of unsecured debt so i wouldnt qualify anyway would i???
i want to remain on the property ladder as its a good investment 4 the future

and i wish to remortgage becuase my deal with future is 20 days away from its tie in period which after that my rate will be even higher than im paying now so to me a remortgage to an intrest only mortgage will see me well for a few years untill my credit file is repaired and my partner is in a full time job as kids will be in school so we will have 2 full time incomes. its pretty hard trying to raise a family on its own without the worry of debt like this

JoeK_3

MortgageMamma wrote: »

I have had it Pm'd but I'm not going to disagree with you, I think the citizens advice may be a good port of call but he needs to be fully informed of all the options open to him

i,e, what his finances would be like if he remortgaged on a suitable deal without fee's being added

what he would be paying monthly if he sought debt counselling and made payment arrangements with creditors, and to lasting effect it will have on his credit rating

at the end of the day its his decision. but he needs arming with the facts - I just dont think we should really be pushing him in one direction or the other

I understand that Peter should get a balanced opinion and that's why I'm suggesting a visit to CAB for debt management help, it's just that the threads showed two advisers jumping in and agreeing with the remortgage before all the facts were presented to them.

JoeK