no light at end of tunnel

lucky_magpie_2

We are seriously in debt and need some advice.

My partner is 51 years old and I am 50.
We have a mortgage with Nationwide still owing
£140,749.00 with approx 25 years to go as extended mortgage to 32 years.
A secured loan with First Plus which was over 25 years, the total was for £89,000
but still owing £85,634.00 after 9 years due to very high interest rate. We were
misold the loan which is also being looked into.
I have two CCJs with the Nationwide due to a DMP company telling me not to pay as the Nationwide wanted too much money, and the DMP company would sort it out but did not, the 6 years will be finished in November 2015, I still owe approx £2500 paying £40.14 per month which means it will take me years to pay it off, with the Nationwide also taking out a further extension of my CCJs. These CCJs were not even my fault. They also put a charge on my house.
I have a Debt Management Plan paying £20 per month with a balance of £4491.15 which will be finally paid off in 2033.

£140,749.00 Nationwide mortgage
£85,634.00 First Plus
£2500 DMP
£4491.15 CCJs

Total £233374.15

The value of our house is £300,000.00 which leaves us £66625.85 in equity.

I have spoken to Stepchange as I wanted to go onto an IVA, but they advised that I do not have enough debt to do this. They also told me I am unable to go bankrupt as I have to much equity to do this. There is nothing they can do for me.
I have spoken to the Nationwide mortgage to find out if I could put the Nationwide mortgage and First Plus together. I was told that I will be declined if they try and put a mortgage through. As I have CCJs I will never be able to get a mortgage again.
Apparently I will be shown as a risk to pay it back even though I pay £1400 per
month at the moment with no late payments.

Can anybody help us sort this mess out, as I have tried every avenue possible.

sourcrates

Hi,
Yes you can't include secured debts in an IVA and the amount of unsecured debt is to small.
Seriously, the only option I can see working for you is to sell the house, that way you would clear all your debt and have a few grand left over.
It would mean renting but what price piece of mind from been debt free !!!!

chazsucks

Hi Lucky Magpie, first of all I'm really sorry about your debts, it must seem like a huge amount and so overwhelming.

The one thing that stands out to me is '£66,625.85 in equity.'

I'm not sure what area you live in but there are still places you could buy outright for that sort of money.

And then without mortgage and debt payments you will be able to save to get somewhere a bit better in a few years?

lucky_magpie_2

Hello Thank you for your comments, I do totally agree with you, but my partner will not sell the house, which is why I am looking for another way, I do live in the South East,

sourcrates

lucky_magpie wrote: »

Hello Thank you for your comments, I do totally agree with you, but my partner will not sell the house, which is why I am looking for another way, I do live in the South East,

Realistically, unless you win the lottery, there is no other way, I fear your partner may not realise the gravity of your situation, it's understandable not wanting to part with your home, but the figures you have here are crippling, not to mention the stress it must be putting on you, sometimes people need to be shocked into action.

January2015

Hi

Ask you partner what their solution is to your current situation. Selling the house would be my last resort - but I think you have reached the point of needing to access the last resort.

Talk to your partner about the difficulties you are in now, how long it is going to take to clear those debts, and how on earth you are going to manage in your retirement. You are both going to be 75 before your mortgage is cleared and 66 before the secured loan is cleared. During the period between now and reaching 66 you are going to have no quality of life.

Selling the house and renting will be a difficult choice, but it will give you a fresh start. You must be paying a fortune in mortgage and secured loan payments. Living in the south east you would be able to rent for less than I would think you are currently paying. This would mean you could save the difference, enjoy life and more.

Seriously - ask you partner what their solution is because it's clear from your post that you can't go on like this.

lucky_magpie_2

Thanks again for the replies,

The amount we bring home each month is £3800 which is a great salary, I just cant stand seeing all the dead money being paid to First Plus as I have been paying £862 per month for 9 years and already paid approx £88,000 to them but in reality I have only paid off about £4000.

January2015

lucky_magpie wrote: »

Thanks again for the replies,

The amount we bring home each month is £3800 which is a great salary, I just cant stand seeing all the dead money being paid to First Plus as I have been paying £862 per month for 9 years and already paid approx £88,000 to them but in reality I have only paid off about £4000.

Do you have any idea of a settlement figure for First Plus if you did sell the house?

Be cautious and just check there are no early settlement fees that will take you by surprise.

On_my_way

Personally I would do anything to keep hold of your home as once you sell it you would seriously struggle to get any sort of mortgage.

KirstyO

lucky_magpie wrote: »

I just cant stand seeing all the dead money being paid to First Plus as I have been paying £862 per month for 9 years and already paid approx £88,000 to them but in reality I have only paid off about £4000.

This is eye watering for a long term loan, what interest are they charging?! Has any of this been fees or is it all interest?

National_Debtline

lucky_magpie wrote: »

As I have CCJs I will never be able to get a mortgage again.
Apparently I will be shown as a risk to pay it back even though I pay £1400 per
month at the moment with no late payments.

Hi

I just wanted to clarify that this isn’t necessarily the case. The CCJs will have a negative impact on credit scoring while they’re on your credit file and may mean that you’re declined credit applications at the moment, or you may not be able to get such a good interest rate etc.

Each CCJ will only be on your credit file for 6 years and then drop off though, at which point they wouldn’t be a factor in normal credit scoring, although default notices from doing a DMP may still have a negative effect if they're on your file. The CCJ charging orders will still be on your property until paid off so I’m not sure whether secured lenders may include that in their credit scoring process. More refinancing options may be available in November though, if that’s when your CCJs drop off.

As January2015 has mentioned, you need to consider your age and whether you would realistically be able to pay off another secured loan. On the flip-side, if you could get a lower interest rate than with First Plus it may work out better overall.


If you want impartial advice on any refinancing possibilities I suggest contacting the Money Advice Service:

www.moneyadviceservice.org

James
@natdebtline