Together mortgage hell

jamesd

getmore4less wrote: »

0% spend CC would just make the situation worse.

Why would you think that not paying any interest on say £1000 for a year would make things worse?

getmore4less wrote: »

Inflating out the debt is a long haul game these days and an impractical way to deal with these situations.

With £1220 mortgage payment and say £800 of other spending on net income of £2020 an increase in net income of just 2.5% in one year would produce an increase in non-mortgage spending ability of £40.40, which is an increase on the non-mortgage portion of 5.05%. Five years of the same and the non-mortgage money available has increased by over 25% and over £200 extra is available each month, while the cost of living will have increased by less than half that. It takes longer than in high inflation times but it still makes things easier gradually.

In the short term the statement of affairs - income vs expenses - is the way to get the quickest gain. And/or more work, if available.

getmore4less

There is no spare money they have allready been spending more than they have coming in.

Moving the together debt which will be on a mortgage rate to a 0% CC wil just be creating a new debt that WILL go to a higher rate when the 0% runs out and no money to pay it back. There just won't be the cash flow to recover unless there is a cut in spending and/or an increase in income, untill that is in place a 0% CC is a mad idea.

jamesd

The 0% card would reduce spending by reducing the interest bill for the duration of the deal. To do it requires having sufficient available money to repay the amount borrowed on the card minus the amount saved on mortgage interest over the duration of the deal. If there really was no available money at all it couldn't be done. But I'm assuming that the work on spending that I also mentioned and/or pay increases happen to create some spare money even if there is none today.

If there truly is and remains no money for anything other than priority payments then this route just can't be used because there's no money to use it.

getmore4less

From the limited info the reality is you probably never could afford the place.

as well as saying,

The income expenditure shows we can afford the mortgage payment of 1076 a month which we can but it does t allow us to put any non priority payments in as well and ridiculous paying that amount for the house and area we live in

This was meant to be a short term fix 8 years ago but is now just a burden on us both


How much of the £25k together was deposit previous debt repayments.
£18k of arrears
how big are the other debts.

How much bigger is the mortgage/loan debt than when you started.
How much has the house gone up in value.

The reality is looks like you have only been renting the money to have this place, might as well have been renting.

what rate is the mortgage/loan.

what's the rent on a place going to be.

Given the bit in red why keep the place?

getmore4less

jamesd wrote: »

The 0% card would reduce spending by reducing the interest bill for the duration of the deal. To do it requires having sufficient available money to repay the amount borrowed on the card minus the amount saved on mortgage interest over the duration of the deal. If there really was no available money at all it couldn't be done. But I'm assuming that the work on spending that I also mentioned and/or pay increases happen to create some spare money even if there is none today.

If there truly is and remains no money for anything other than priority payments then this route just can't be used because there's no money to use it.

Look at the info,
The income expenditure shows we can afford the mortgage payment of 1076 a month which we can but it does t allow us to put any non priority payments in as well

We have not seen this SOA or know what the non priority are but that payment is £50pm short of the current payment thats assuming they are sort of breakeven now and not increasing debt.

if they could ballance the books and then find another £100pm to service a 0% CC over say 18 months @ 5% that would save them <£3.50pm over just overpaying the debt by £100pm.

This all asumes they could even get a CC in the first place with mortgage and loan defaults on the credit file.

jamesd

Yes, I read that but I don't stop at the current situation I consider what might be done to improve it. I also don't think that it's very likely that a 0% card could be obtained.

It is interesting that the NRAM income and expenditure check appears to say that £1076 a month is affordable while the monthly payments they are wanting are £1220. This implies to me that NRAM know that they are taking an unaffordable amount and should be making an agreement to extend the loan term to cut the payments to £1076.

jamesd

andrew0174 wrote: »

together mortage and loan ... NRAM

Have they contacted you about refunding all interest charged for years when they provided wrong annual statements (also see here)?

The first decision that I linked to was for loans up to £25,000 so I don't think that you would be affected by that one. A high court decision, NRAM plc v and (1) Jeffrey Patrick McAdam (2) Ann Hartley, a few months ago says that they are also liable for loans above the £25,000 Consumer Credit Act limit when they provided annual statements, even though they weren't required to provide annual statements.

If they have not yet contacted you, you should ask them whether you are affected by that decision and if you are, ask them to make an urgent payment off the Together loan balance due to your financial hardship. Many former Northern Rock customers have been affected and the refunds can be very large, all interest since October 2008 on the loan, around £6,000 on average.