Secured Lending as last resort

carlyfarley

Hi
We have £35,000 in debt. a house worth £175000 and a mortgage of £119000. We have tried to remortgage and raise £30000 from the equity to repay the debt, but the LTV is letting us down (we have tried three times now and it has failed at the valuation stage each time)
We are now looking at DMP/IVA but would like to consider a secured loan as a last resort. I know its not a great option, but its a little hope for us.
Do brokers exist for secured loans? Trying to work out the best way of finding a half decent deal.
Any help would be appreciated
Thanks

Pixie5740

This isn't 2007, secured loans are much more difficult to get these days. You need a good credit file and a decent amount of equity in your home.

You're right, turning unsecured debt into secured debt is not a great option and should be avoided.

Taking out a secure loan is just a way of consolidating your debt? Have you consolidated before only to end up back at square 1 with twice as much debt? The reason debt consolodation often fails is because prople don't tackle the route cause of your debt.

If it were me and my choices were DMP or secured loan, I'd pick DMP every time.

carlyfarley

I don't want a DMP, its IVA or secured loan. I know its not 2007, although I'm sure I've seen this response from you before.
We do have a decent amount of equity, around £60000

Grumpelstiltskin

Carly why are you against a DMP?


Please start here.


https://forums.moneysavingexpert.com/discussion/4228011


A secured loan is a no no.

carlyfarley

They've given us an 11 year timescale, I also am put off with being chased and hounded, I don't think my nerves could take it. The IVA just gives a clearer end date (5-6 years)

dancingfairy

The fact you've been turned down 3 times is probably a sign that you're very unlikely to get one.
Mortgage rules have been tightened up relatively recently and they have to do affordability checks. I imagine it's probably similar with secured loans, that they have to show affordability?
Also if you have been turned down 3 times already would those searches and the fact you have not already been offered credit show up on your files and be a big red warning flag to other lenders? You may find that if you have 3 'decline' markers on your credit file that noone will touch you, even if they would have to start with
I don't know what to suggest I'm afraid, it looks like belt tightening, a dmp or IVA are probably your most realistic options.
df

carlyfarley

Its Stepchange who we have been in contact with and they recommended a DMP. I've been reading up on both but I'm put off by the above

carlyfarley

Thank you Dancingfairy, I really appreciate your friendly and helpful response. I seem to get attacked every time I post on here x

Grumpelstiltskin

Ok So you manage to get a secured loan then down the line the **** hits the fan and you end up getting your house repossessed, would that be better than a DMP? I think not.

Grumpelstiltskin

Carley I hope you don't think I am attacking you because I am not but you have to see there is no instant fix.


You have to be prepared to get some flack from your creditors in the beginning but it will get easier.


Post a SOA up and the good people will see if they can suggest any cutbacks you can make to help you reduce the length of a DMP.

PinkPoppies

carlyfarley wrote: »

They've given us an 11 year timescale, I also am put off with being chased and hounded, I don't think my nerves could take it. The IVA just gives a clearer end date (5-6 years)

How much do you know about IVAs? Give me a DMP any day. Please have a look at this- http://images2.moneysavingexpert.com/attachment/ivaGuide.pdf