Hello

scottywatty

Hello,
I am a brand new newbie, however I have been lurking about for a while stalking all your posts
I must admit it has been the inspiration I need to get myself in order. I am now a DFW (see trying to get the lingo! lol).


At the age of 24 (Sept 2013) I bought a house, on a whim, with no deposit. Deposit was funded partly by recent inheritance (grandmother passed) and the rest, including money to do up house, was by a 15k loan (which my mum took out in her name and I pay her monthly). I also used my CC to buy nice things for the house. I also have a car loan (taken out before the whim buy house).


So...for the past 20 months or so I have just been plodding along. Getting paid, DD getting taken off my accounts. Going about switching things and not paying any attention to budgets etc. Anything I needed/wanted went on the CC.


However I somehow ended up discovering this forum (think during a remortgage search. So as it stands my debts are:


CC Lloyds £1105 (DD £50p/m)This months statement
Car App £10.5k(DD £287.51 p/m).Annual statement due June.
Loan App £11k (DD £266 p/m).
Mortgage £67799.43(DD £358.28p/m) Spet 14 statement.


Loan and car both due to be finished of 2018. My mortgage was a 95% LTV but I have done a lot of work doing it up (it was a character property wreck). It is now worth £110k, so providing I can get my mortgage down to 66k I will have a LTV of 60%. So my plan (if I have calculated things right) is to remortgage (my current interest rate is rubbish due to high LTV) and get a better interest rate. Looking about if I keep same years (28years) with the lower LTV I will be about £100 less a month, which I was planning on OP to the same I currently pay and pay off quicker.


My work allows my to do OT. So far I have done 2x12hr OT and have another 1x12hr on sat and time and a half. So my plan is to get the OT in and blast my CC. My basic take home pay is £1600.


Wow. I think that is the first time I have written that all down or told anyone about what I have hanging over my head. Looking back it seems I have almost written a novel. Hope it doesn't sent you to sleep zzzz......


Love
The now stereotypical stingy scot

immoral_angeluk

Remortgaging is a baaaad idea unless you have very very specific circumstances. You're turning unsecured 'easy' debt, into secured 'nightmare' debt. That's the last thing you want to do as if it all goes pete tong you could end up losing your home. Not a wise move.

Have a look at doing a financial statement and working out all your incomings/outgoings and see exactly what you have to play with. It could be just a case of getting a budget sorted and learning to stick to it.

scottywatty

The remortgage idea is not to pay of loans/car etc (I will continue the DD and see if I can OP when I have paid off CC), it's just to get a better interest rate than current mortage plus my current fixed runs out on the 31st Dec this year. Not sure if that will still be a bad idea?I need to work on a budget and if anybody has any good links to apps/spreadsheets for good budget templates. Feel free to post a link and I will chase it up.


:)x

japmis

immoral_angeluk wrote: »

Remortgaging is a baaaad idea unless you have very very specific circumstances. You're turning unsecured 'easy' debt, into secured 'nightmare' debt. That's the last thing you want to do as if it all goes pete tong you could end up losing your home. Not a wise move.

Remortgaging for a better rate is a good idea as long as you aren't borrowing any more money (which I believe is the intention, to reduce your outgoings).

Here is the link to doing a statement of affairs (SOA)

http://www.stoozing.com/calculator/soa.php

I am a MASSIVE advocate of the "You Need A Budget" software (YNAB). I can't recommend it highly enough and you are a great candidate for it. :beer:

Muhren

scottywatty wrote: »

The remortgage idea is not to pay of loans/car etc (I will continue the DD and see if I can OP when I have paid off CC), it's just to get a better interest rate than current mortage plus my current fixed runs out on the 31st Dec this year. Not sure if that will still be a bad idea?I need to work on a budget and if anybody has any good links to apps/spreadsheets for good budget templates. Feel free to post a link and I will chase it up.


:)x

Getting a better LTV is the best thing to do as you will be paying less for your mortgage each month. You will of course have to factor in an arrangement fee.

Tixy

Hi scotty and welcome to the forum and unlurking!

Have you checked whether you have any early repayment penalties on your current mortgage deal - if you have you'll need to factor those in to any cost savings for moving to a cheaper deal.

Is your credit card charging interest? If so, and depending on how quickly you can clear this debt then maybe consider seeing if you can get a card with 0% on balance transfers (there are a couple currently that have no balance transfer fee).

With your car and other loan - do you know the APRs on each? and know whether you can make overpayments to each without penalty? Finding that out will help you decide with you to put any overpayments to once you have paid off the other debt.

Good luck with debt busting - i think a statement of affairs would definitely be useful for you (from the link in the post by japmis).

andyfromotley

Holy cow! £600 of your income goes on your unsecured debt!! Feels slightly feint.

Welcome, you are definitely in the right place, pop up an SOA and get yourself into debt killing mode!!

andyfromotley

oh and another huge YNAB fan here.

japmis

andyfromotley wrote: »

oh and another huge YNAB fan here.

:smileyhea



I need to convert more people to YNAB - I haven't managed one yet! :rotfl:

rising_from_the_ashes

What % of your annual salary are your c/card and loan debts?

It looks to be quite high if you owe approx £20k and take home £1,600 / month

Have you checked that you'll pass the new 'affordability' tests that lenders are much more rigerous in enforcing these days?