Fed up and need help

Mb1978_2

Hi all,

Granted this is my first post, I have been on reading the site for a good year now...my scenario

have a 12 year joint mortgage (father(58)/son(28)) worth £153,000 interest only
works out £930 with the latest interest rate.

The house is worth around £220,000-£230,000 so plenty of equity in the prop....

we both earn roughly the same, around £23,000 each, however...dad has over £30,000 in CC bills, which are out of control...mine are around £6,000 but have control of them, however I have 5 settled defaults in my name, my father has none.

Basically more is going out then is coming in. Would it be possible to get the whole mortgage in my name over say a 30 year term and have my father down as a tenant ....or do we only have one option left...i.e sell and downsize ?

Thanx

Matt

firesidemaid

can yours and your dads credit card spending be halted? the costs to run/own your house aren't too much for your wages.

how long has the mortgage been running for? you need a mortgage expert to come along, but i doubt you'd get 153k on your wage alone.

is it more than 2 beds? can you get a third lodger? are any of your or your dad's debts secured?

hopefully some financial experts will be along soon.

you could also post your soa's/incomings and outgoings on the DFW board and we can help you save some money on your outgoings.

is your dad as worried as you about his / your situation?

UK007BullDog

When were the defaults settled? What type were they? Mortgage or CC or loans?

Are you touting your CC's? I.e. getting 0% deals to help to pay them off and you are not hit with interest charges?

Depending on your credit record, if it were 100% clean you could borrow up to £184,000 joint. so it could give you a good £30k to pay off the CC's from your dad. However your mortgage will be going up again. Once your dad retires have you thought how you can both afford a bigger mortgage? Also if you consolidate your CC into the property your risk of reposession is higher if you do not manage to pay the mortgage. Have you checked if you could reduce your outgoings elsewhere?

Mb1978_2

sazzacat wrote: »

can yours and your dads credit card spending be halted? the costs to run/own your house aren't too much for your wages.
**********************************************************
Neither of us spend on the cc, both of us just cover the minimum payments
**********************************************************

how long has the mortgage been running for? you need a mortgage expert to come along, but i doubt you'd get 153k on your wage alone.

**********************************************************
Just coming up to its 2nd year now, when we took the mortgage it was £800 a month - I was thinking of getting a self cert mortgage..
**********************************************************

is it more than 2 beds? can you get a third lodger? are any of your or your dad's debts secured?
**********************************************************
its a three bed detached property, I know my father would definately say no to having a lodger - unfortunately that isnt an option
**********************************************************
hopefully some financial experts will be along soon.

you could also post your soa's/incomings and outgoings on the DFW board and we can help you save some money on your outgoings.
**********************************************************
will pop the dets over soon
**********************************************************
is your dad as worried as you about his / your situation?

Im sure he is, unfortunately my father is so depressed about debt/selling house etc i think hes past worrying

Thanks for you reply

Mb1978_2

UK007BullDog wrote: »

When were the defaults settled? What type were they? Mortgage or CC or loans?
*********************************************************
All are mine and over two years ago they were settled, 3 credit cards a store card and hire puchase
*********************************************************

Are you touting your CC's? I.e. getting 0% deals to help to pay them off and you are not hit with interest charges?
*********************************************************
dont think we are able to get 0% deals, im not worried about my cc's dad has 4 cc's halifax ,barclay card, barclay mastercard and virgin the halifax card is the highest at £14,500
*********************************************************

Depending on your credit record, if it were 100% clean you could borrow up to £184,000 joint. so it could give you a good £30k to pay off the CC's from your dad. However your mortgage will be going up again. Once your dad retires have you thought how you can both afford a bigger mortgage? Also if you consolidate your CC into the property your risk of reposession is higher if you do not manage to pay the mortgage. Have you checked if you could reduce your outgoings elsewhere?

*********************************************************
If we go joint we can only get the mortgage til dad's 70 so the payments would be massive
*********************************************************

firesidemaid

i don't know what house prices are like in your area. but, it sounds like you may be fighting fires at the moment - so good on you for posting now.

you could sell, pay off the debts and use the capital left to buy a smaller, cheaper 2 bed property.

cut-up all the credit cards and then set new budgets for yourselves. i take it the spending that caused the credit card balances has now ceased? i know life isn't always straightforward or easy.

UK007BullDog

You need and post your debts over on the other board and you and your dad need to take charge of the debts. If it means having a lodger for a couple of years then so be it. Both your incomes are ok and you could be debt free in 3 to 4 years but only if you cut up the cards, get rid of all the none essential spending. You are only paying one council tax, have one heating bill and so forth. So you should not have a problem as others who earn less than you with a bigger mortgage and kids manage fine. So you and your dad need to change your mindset. Start making a list of all your spending every day and look where you can stop or reduce drastically. Pubs, restaurants, take aways, lunches, movies, Digital TV, smoking, fancy ready meals from supermarkets, if two cars get rid of one or both, change utility supplyers, change mobile phone, telephone & internet or get a package which offfers all much cheaper, check car insurances to see if you could save there. Cut up the cards to stop spending.

Yes do look at 0% deals and once money transferred cancel the old card in writing by registered mail and do not use it ever again. Cut up the new card as well to prevent use and then pay all your money into it to reduce it then tart again and repeat the process. Soon it will all be gone and you will be happy.

You can get a mortgage up to age 75 and higher. However will your dads pension be enough to pay his 50% of the mortgage once he is 65 or older or does he plan to keep on working?

Also once you are on your own you would have to support the whole mortgage on your own. So if I were in your shoes I would concentrate on getting rid of the CC's first of all and then look at changing the mortgage to a repayment to tackle that debt. Debt consolidation should only be considered if you cannot manage any other way.

Mb1978_2

Another idea I have had is renting for two years, let the interest grow on the equity which is around £65k to £75k --then pay off say 70% of dads credit cards.

I would then look for a property around the £170k mark - after the equity is put down then against the house we should only need a mortgage for around £100k which I should be able to get on my own then

Some of the debt (10k) was caused by an ex of mine, hence the reason I had the defaults against me, and dad ended up bailing me out...which naturally caused dad to rack up the credit on his cards.

Unfortunately, the x is long gone with no trace so cant even chase her up as nobody knows where she is.

Melissa177

930 is a lot to be paying on an interest only mortgage. I calc that to be 7.29%.

Can you get a cheaper deal elsewhere? Or is that not possible?

UK007BullDog

He could be on a SVR as he said each time the interest rate goes up so does his mortgage.

He should definately review his mortgage as they are paying over the odds.

firesidemaid

there would be no point in putting the equity into savings to pay off the credit cards later, as unless you have really low debt interest rates then you will pay more interest on the credit cards than you would on your savings.

are you able to sell anything on ebay to raise a little money?