I need advice

Argyll_2

I currently have 3 credit cards with debts of £7000, £2900 and £3000 respectively. I have a house in Leeds which I rented out last year when I moved back to Scotland. The tenant left me in the lurch a few months ago and moved out within 2 weeks. I'm now making a loss as I have to pay this mortgage again.

I've put the house up for sale and stand to make about £60,000 profit. However in the meantime I'm a bit strapped for cash. If I re-mortgage the house that's up for sale then I will not be able to sell it as I will be tied in for a couple of years. Is there a quick way of quickly releasing some equity from the house without taking it off the market?

Edit: Also what's the best option to consolidate all my credit cards in to one? The two smaller debts are something like 4.5% for the life of the balance. However the £7000 card is something astronomical like 29%.

msmicawber

Hi Argyll,

I'm afraid I don't know anything about quickly releasing equity, but I would phone the three CC companies, tell them your situation and advise them that you will be clearing the accounts once the house in sold and in the meantime you'll be paying £x monthly to show good faith. If they don't like that, request that they freeze the interest in the meantime.

Why is the interest so high on the £7000 card? Have you tried transferring the balance to a 0% or low life of balance card? If not, I'd do that as a priority.

Argyll_2

I tried to do that and tried to take out another cc yesterday. Unfortunately I was refused! I have looked at my credit rating with Equifax and it's not that bad. I haven't checked with Experian yet so it might be that.

I had a dispute with Npower that went on for more than a year! I was sent demanding letters from some debt collecting agency but I explained I was trying to sort it out with Npower. Npower never replied to any of my letters so in the end I got fed up and just paid the bill (£111.00). This only happened a few days ago so the debt collecting agency told me Npower must by law remove and adverse remark in my credit file so perhaps it's this and they used experian. Also I'm renting a flat from a friend in the short term and I'm not on the voters role. Would this have any affect on my credit history?

I telephoned Virgin credit card yesterday and enquired about the interest but they said they wouldn't do anything about it. is there any way i can reduce it without it having any adverse affect on my credit history? When I eventually sell my property in England I plan to buy a new home here in Scotland so my credit history is very important obviously as it is to most people.

Any help would be appreciated.

Edit: Sorry I misread the letter from Virgin CC. The interest rate is currently 15.9% which will increase to a whopping 29.9% in September. I think my only option is to take out a loan with Alliance and Leicester whom I currently bank with and pay this off. What do you think?

jonesMUFCforever

Have you considered converting the mortgage to interest only until the property is sold.
This would reduce your outgoings.

msmicawber

If the A&L loan comes with a good rate of interest and has no (or at least reasonable) early repayment charges, then I think that may be your best option. NPower really are a bunch of flakes in everything they do, aren't they?

ejones's idea is good - would that reduce your outgoings enough until the house is sold, though?

currentmember

I would phone Virgin / MBNA again and ask to put through to the customer loyalty department (which does exist if they say otherwise). This area will be able to reduce the amount of the increase - possibly so there is no increase - though dont quote me on this - most people end up with a 1 or 2% increase, but that is far better than doubling the interest rate.

Argyll_2

I reduced the mortgage to interest only some time ago. Good thinking though thanks.

I have an appointment with A&L tomorrow so I'll see what they say.