Mortgage transfer of equity failure not what?

cool4door64

Hi I posted on here before and got some very helpful advice regarding my predicament.

Went to the halifax on friday they wouldnt allow the transfer of equity because of my debts but more because I had some late payments on my credit card due standing order taking 10 days to arrive!! Have sorted this by setting up direct debits, but obviously it shows on my credit report. Halifax have said to come back in 6 months and try again. My ex doesnt want anything to do with the property as all the equity in it, is my money and I have paid the mortgage since day one.

Now my debts are as follows;
natwest overdraft £3400
santander hovercraft £3200
Barclay card credit card £3700
natwest credit card£1400
natwest credit card £900

I have tried to do credit card balance transfers to 0% but keep failing the credit check, I have also tried for consolidation loans and same result the banks dont want to help out with a lona as they make more money off me with the individual APRs, and obviously increase their risk if they take this on.

Now my ex will leave shortly and I will have to cut back on a lot of things to make my payments as we share some bills, etc, (please dont lecture me on being ruthless towards my ex or anything like that as you dont know my story, and we are both trying to do whats fair, and remain friends).

So because I have to make some cuts I will probably not be able to afford my debts at there current rates of payments. So I am abit of a catch 22 really.

I could try the IVA route but obviously it means I cannot get the TofE till after 5 years maybe 6 but then she would ask for a cut of my house, or refuse to sign it over after meeting someone else, etc.

Would a DMP affect my credit and chances of signing over the TofE in the same way as a IVA I know they will be marked on my credit file? I just want to get rid of my debts and never have credit again, I am selling everything I have in terms of possesions to clear my debts. I am in the process of selling my pride and joy to pay off the barclaycard and hopefully they will then let me apply for another and transfer all debts to a 0% to cut the interest and ease the payments till im on my feet.

Any ideas on this anyone?

Thanks
P

Thrugelmir

Very bluntly, I would say sell the house. Use the equity to clear your debts and start life again. Better than struggling away only for a misfortune to occur and sink you at a later date.

If you default in any way. Then remortgaging the property into your name will be nigh impossivble for some years.

The problem is yours to resolve. Not the banks.

cool4door64

Thrugelmir wrote: »

Very bluntly, I would say sell the house. Use the equity to clear your debts and start life again. Better than struggling away only for a misfortune to occur and sink you at a later date.

If you default in any way. Then remortgaging the property into your name will be nigh impossivble for some years.

The problem is yours to resolve. Not the banks.

I have £13k of my money in the house not to mention the money the further £5k I paid in estate agents fees, solicitors and moving us all to the new house in july 2012. Now I didnt have a good start in life and every penny I have in this house is what I have strived hard for to get where I am today, I have always had a job, I put myself through college and uni to get where I am and never asked for help off anyone. This house will be for my daughter when I am gone, I put my life savings into the first house we bought for my ex and her children, we also have a daughter together now.

Now if I sold the house I would have to pay another £3500 to exit the mortgage, plus another £3000 or more in estate agents and solicitors fee so would have £6500 left provided it sold for the amount we paid for it. Which is highly unlikely in todays market.

I am not asking the bank to resolve my financial issues, I have been working hard to pay them off, and will continue to do so. I was asking for advice that can help me in my current situation to ensure I can keep my home which is what I worked my !!!! off for.

londoniana

I'm in no way an expert but given the level of debt you don't really have £13K in your house when you have about £13K in CC debt and ovedraft...

As it appears you can't do the transfer of equity, perhaps you can go to your solicitor with your ex - assuming she'll agree - and have a trust deed drawn, where it is specified that you own the property, put the deposit down, are making all mortgage payments, etc. This way, when you will be in a position to do the transfer of equity, it can be done without any money changing hands.

Thrugelmir

londoniana wrote: »

As it appears you can't do the transfer of equity, perhaps you can go to your solicitor with your ex - assuming she'll agree - and have a trust deed drawn, where it is specified that you own the property, put the deposit down, are making all mortgage payments, etc. This way, when you will be in a position to do the transfer of equity, it can be done without any money changing hands.

In the event of any shortfall if the property is sold with negative equity. Then there's still a liability for the shortfall. So would someone agree to such a proposal (having sought advice), extremely unlikely.

neverdespairgirl

How big is your house? Could you get a lodger or two?