Advice required

Mrs_who

Hi there, I am looking for any advice possible please.
I am currently on a DMP and have around £4200 unsecured debt.
Basically my debt started after I bought my home.
In 2012 I bought my home from my local council because I had swapped the home to be in a suitable area and the house was on the generation scheme.
However after numerous complaints and the coucil not for filling their agreement after 6 years the house needed repairs.
I bought my house and recieved a discount from council and was able to use savings for a deposit.
I paid for a local broker to find me the best mortgage and at that time my credit rating was excellent.
I explained that I wanted to borrow additional funds as I needed extensive repairs doing.
I got quotes and could just about cover it with £10,000
The mortgage broker was confident that he was able to obtain me an fantastic mortgage package.
The broker didn't do what he said and got a 3 years fixed term with no additional borrowing.
I was then stuck because I could not borrow money as rating had took a hit with now having a mortgage of £65,000.
My current provider is nationwide and I know with my credit rating at the moment and with me being on a DMP they wouldn't entertain me nor anyone for that matter.
I can still afford the mortgage repayments if it goes to standard rate.
However I am desperately in need of sorting my house out before it becomes seriously dangerous.
The reason I got into debt was to try and sort out some of the repairs.
Anyway I want to know if there are any secured loan companies that I could go to?
I know that borrowing isn't the answer and I have been to every advice centre there is but no one can give me any clear direction.
I either find the money or face selling my house at a loss and making myself homeless.
I currently have approx £33,000 equity
The council agreement ends in 2 years with the RTB terms.
I thought it could wait but unfortunately I am in a desperate situation.

Bobarella

So just checking I have it straight. You own a property that needs 10k of repairs money spent on it. But borrowing it is not an option due to the existing 4.5k you are repaying via a DMP?

What has happened to cause the damage? I am just wondering whether any of it would fall under house insurance?

chevalier

there is no recourse to the council to get the house put right?

good luck with getting it sorted

Dobbibill

What sort of repairs are needed?

Ideally, you would have been better to have the council do any repairs before the purchase but then hindsight is a wonderful thing.

Have you looked into a grant from your council?

Or have you looked at Turn2Us grants?
https://www.turn2us.org.uk/Find-Benefits-Grants?gclid=CjwKEAjw7uKwBRDUlJvRo-z6rgMSJACbmSBhAvKA5Pcl339eMqHS3PrYDFHwiOeNNKnC_DeJgiTv8xoCS0bw_wcB

Without knowing more information, it's difficult to offer suggestions.

HTH

DB

Mrs_who

Thanks for your replied.
I basically mover in to my house in 2008 via a mutual exchange with the local council.
The house was in disrepair and the kitchen had been partly burned and badly damaged by the previous tenant. The council never even checked my house before handing me the keys.
So we had no choice but to put a new kitchen with what funds we had avaliable at the time.
Unfortunately it went from bad to worse and I had so many visits from the council surveyor that we was on first term basis.
I made endless compliants about the chimney leaning and was dangerous part of the roof and guttering were missing. The list is endless.
I was assured that my house was on the regeneration programme but every year they never had any money left.
I then received a letter from the council to say that because I had a spare room I should consider accepting a smaller property. With the possibility of facing being moved I felt I had no choice to buy the property.
So the outstanding debt is accumulated from !!!!! loans and an overdraft from making repairs.
One of which was the boiler.
Unfortunately my house insurance will not cover this because they are general repairs which is basically my responsibility. I have also spoken with the legal team and they have said that I wouldn't have a case.
Since then I have applied for grants, turned to CAB, debt advice service and again the list is endless and still no joy.
I am at a total loss of what to do because I have tried almost everything to put right this sitution?

sourcrates

Oh my, I think buying a house that needed so much doing to it, in terms of repairs and not having the funds to cover the cost, was probebly not the wisest move on your part, unfortunatly, now it's yours, your stuck with it.

Unless you can obtain any available grants from your local council, your options are limited I'm afraid.

asparagus1968

hi, sorry you are in a situation like this.
I don't understand what you said about selling though?
the mortgage is £65,000, you said there was originally £10,000 of repairs needed, you have already spent over £4000 and you have £33,000 equity. (so house is worth £98,000?) That doesn't make sense because you said if you sold the house it would be at a loss??
as long as you could sell it for£65,000 plus the £4000 plus selling costs, you wouldn't be at a loss surely?

HappyMJ

Mrs_who wrote: »

Thanks for your replied.
I basically mover in to my house in 2008 via a mutual exchange with the local council.
The house was in disrepair and the kitchen had been partly burned and badly damaged by the previous tenant. The council never even checked my house before handing me the keys.
So we had no choice but to put a new kitchen with what funds we had avaliable at the time.
Unfortunately it went from bad to worse and I had so many visits from the council surveyor that we was on first term basis.
I made endless compliants about the chimney leaning and was dangerous part of the roof and guttering were missing. The list is endless.
I was assured that my house was on the regeneration programme but every year they never had any money left.
I then received a letter from the council to say that because I had a spare room I should consider accepting a smaller property. With the possibility of facing being moved I felt I had no choice to buy the property.
So the outstanding debt is accumulated from !!!!! loans and an overdraft from making repairs.
One of which was the boiler.
Unfortunately my house insurance will not cover this because they are general repairs which is basically my responsibility. I have also spoken with the legal team and they have said that I wouldn't have a case.
Since then I have applied for grants, turned to CAB, debt advice service and again the list is endless and still no joy.
I am at a total loss of what to do because I have tried almost everything to put right this sitution?

You bought the house and along with that comes unknown maintenance costs which you need to pay for.

If you can't afford to maintain it then either move into private rental now leaving it empty and sell when the RTB term expires or patch it up as best you can, stay there and sell it on as soon as you can.

What needs doing on the house to make it habitable?

Mrs_who

My house is valued at £110,000
Mortgage £65000
RTB repayment £16,400
Sorry equity is £28,600
When I paid the mortgage broker £500 he said that he would get me package of £10,000 additional borrowing so I was able to complete the repairs.
This didn't work out as I previously explained.
I then paid him further £300 8 mths later to obtain a secured loan. This never materialised into anything and was put in touch with a dodgy company where the repayments for £10,000 was more than what I pay for my mortgage.
I can't afford to pay for the legal and estate agency fees so would have to go with a cash buyer. I have had a few offers but they are pretty low amounts. So they I would be at a loss.

Bobarella

Is there any way you could move out, rent something else very cheap for a set period and pay for the works to be done a little at a time?

Mrs_who

I wouldon't be able to rent anywhere due to my current credit rating.
Honestly thought of every solution possible.
The last resort was to get cash buyers involved and get quotes.
The council have declined the option of the cash buy scheme due to them offering such low amounts.