Self employed needing to remortgage

meredith132

I have recently separated from a long term partner who kindly left me with a heap of debt. I was looking to clear this by way of remortgage but after calling my mortgage provider today (Woolwich) I am told I do not earn enough. very frustrating as I never defaulted on any cards or on mortgage. I am part time self employed trying very hard to build up to full time asap, so obviously no accounts to show my potential. However I cannot keep up the unsecured repayments up anymore. I miss self certify!!! I am looking at Step Change to give me time but thought I would post here in case anybody can think of another way out. My current mortgage is £85,000 on a £280,000 house, debts are £35,000.

ACG

Your not going to be able to use your self employed income until you have atleast one years accounts. You could potentially file them early but i imagine it wont be enough to get what you need?

Think very carefully about going into a payment plan - especially through a third party. Can you rearrange the debts with the lenders to pay them over a longer period?

Having a payment plan is probably going to stop you getting another mortgage (at a decent rate) for a while to come. Although Woolwich SVR isnt too bad of an SVR to be stuck on.

meredith132

This is what worries me it seems like a quick solution for now but I worry about repurcussions. I suppose I could swallow my pride and call the creditors like I said I haven't defaulted yet but in the next couple of months I think it could easily happen.

ACG

Im not going to advise against doing it as I do not know your situation, all I can say is that it could cause problems down the line.

There is no pride at stake. You have debts, your circumstances have changed, your not sticking your head in the sand and you are sorting it out. Thats exactly the right way to go about it.

If you cant renegotiate or things dont go to plan even after you have then you may have to look at payment plans etc, but at least you have given it your best shot.

We have just come out or a depression/recession. You are not going to e the first person in this situation and I very much doubt you will be the last.

meredith132

Thanks for the encouragement xx I do feel like maybe I need to kick butt before throwing in the towel. I am actively looking for new business. I could do wonders on ebay it won't clear it all but might keep wolves from the door till my books are looking worthy!

ACG

Have you tried markets?

I used to do markets years ago, on a busy day you can come back with a few hundred quid.

Thrugelmir

Is downsizing an option? Sometimes you need to take a couple of steps backwards in order to rebuild and move forward again.

Interest rates are going to rise in the future from these abnormally low levels. So your debt levels may place an intolerable strain on you in any event.

Suggest you take a look at the Debt Free Wannabe board. Lots of support and advice on there. Plenty of people face tough times like you.

meredith132

My mortgage is so small now I actually think cost of moving will not be worth it. I know I have it in me to increase income, we love our home and he is not going to take that away too!!! I have no issues except I need a bit of time to build the business which is happening but not quick enough to give Woolwich what they want right now in order for me to remortgage. I was just in a situation where the ex was happy for me to be at home but I am kicking butt now!!!

ACG

The mortgage will be harder to re-arrange, which is why I would look at the loans first.

Thrugelmir

meredith132 wrote: »

My mortgage is so small now I actually think cost of moving will not be worth it.

I was thinking of the £35k of debts. Unlikely that any mainstream lender will consider a consolidation into the mortgage.

Ruining your credit record with a DMP won't help if you either. In terms of your business rating.

The past is history and can't be rewritten. Some decisions in life aren't easy. Being pragmatic is a lot less stressful.

meredith132

I feel like fighting a bit longer, just checked my faultless credit record actually think i am in the poo because of switching to 0% deals a fair bit!