Mortgage offer is it good?

juejue_3

Hi everyone, this is my first ever thread on Martins site, so hello!
I am after some advice on a morgage offer I have received from London & Country. They have found me a mortgage with Unity Homeloans fixed for 3yrs at 6.29% interest rate, with tie ins for the 3yrs at 6%. After the 3 years there is nothing to pay as long as 1 months notice is given or I would have to pay 1 months interest. There is a charge of £999 arrangement fee which will be put on the mortgage there are no charges for surveyors etc the only other thing I have to pay is the solicotors costs of just over £500 this would nomally be £250 but I am buying my husband out of the house so its costs the extra to take his name of the deeds. What I need to feel confident about is that this is a good offer or should I be looking further for a better one. My only big concern is - part of the equity that will be released is to pay off some massive debts, I have just sent full and final offers off to our creditors, total outstanding debt 35k made offers pro rata in the region of 20k been paying them through Payplan for the last 4 years so hoping, really hoping they accept the offers, if they don't I won't be able to afford the new mortgage payments of 1k a month and payplan payments, feel like I am in a real dilemma and at the moment no one to discuss this all with, can anyone please offer me some advice and / or reassurance I am doing the right thing and it will all be ok??

homer_j_3

The deal doesnt look too bad but without knowing your full circumstance and background, its impossible for anyone to say if you will get anything better.

I would wait until you get confirmation of your offer to your creditors before committing to the mortgage.

juejue_3

Thanks for responding. We have been seriously in debt for a number of years. We joined Payplan just over 4 years ago owing about 54k, todate we have paid off over 18k with an outstanding balance of 35k. My husband and I after 26 years of marriage are seperating and of course he wants his share of the equity. I have based settling the debts on about 60% of the outstanding amount (read the full and final settlement threads on this web page and found a lot of people have managed to settle debts at an even better percentage than that, so I have based my first set of offers at just under 50% - heres hoping!). 3 years ago through a financial adviser we remortgaged to a company called SPML (southern pacific) we are now out of this fixed rate and presently paying 7.61% so I need to move mortgages for a better rate and to pay my husband out, so I need to clear the debts to afford it. He still wants his money so its do it this way or sell the house, and I don't really want to do that so not many options.

L&C have completed all the paper work now, this week I should here from the surveyor so that should be happening shortly, its at this point it gets really scary. 46years old, 111k mortgage and tied in to a 6% penalty.....frightens me to death! To top it all off I have been looking at critical life insurance how expensive is that! I feel like I am rambling, but its good to get this all of my chest especially if it leads to getting some good advice and assurance.

I would be really grateful for any comments and advice.