Remortgage Help - Desperate Situation

allenkhimani

Hello fellow money people

I am completely new to this website and cannot believe that there are other people in similar situations out there!!! I need desperate help with my finances and dont know who else now to turn to. i have the follow out goings

Mortgage with Abbey 709.00 remaining balance is 90,000
Secured loan with paragon finance 478.00 remaining balance is 43,000
secured loan with welcome 302.00 remaining balance is 20,000

I am also in a debt management plan with my partner and we are with CCCS paying 700 per month and been told that it will take 9 years to clear the unsecured debts.

I realise that it is my own stupidity that got me here but having worked so hard to become a lawyer (7 years) i really do not want to loose it all because if i declare bankrupcy i will loose my job and home. I was wondering if anyone could point me in the right direction of where i could go to remortgage all the above mortgage and loans into one and reduce the monthly payment. unfortunately i am in negative equity but not in arrears with any payments in terms of mortgage and loans. if i cannot get help soon i may go under which will mean i will loose everything!!! can anyone please help?!!!!!!!!

toonfish

what is your income, and what is the property worth?

allenkhimani

The house was valued last month at 125k.

Monthly income for me and my partner is 3,800

Any ideas help or suggestions would be greatly appreciated

luckyfool

You could speak to the CCCS again about whether you should either consider an IVA (this is short of bankruptcy and does not have the same implications in the legal profession) for your unsecured credit, or whether the monthly payment you are making to the Debt Management Plan can be renegotiated downwards. They should complete an income and expenditure schedule, and your payments on mortgage, and secured loans would be seen as priority debts as they keep a roof over your heads.

You may be also be able to negotiate an interest only payment on your main mortgage if that would help. However I cannot see a remortgage being an option for you in the current circumstances due to the lack of equity in the property and at the very least the fact that you will have defaults arising from your debt management plan.

Have you considered selling your property, paying off your main mortgage, the 1st secured loan and as much of the Welcome loan as is possible, and effectively rolling the balance up into your DMP, or at that point going into an IVA? You are currently paying £1500 for secured debts on a property with no equity which is worth £125k. I would imagine you could probably be renting somewhere for £500-600 which would be the equivalent.

you really need to go through everything properly with a qualified debt advisor from someone like the CCCS or Payplan.

Good Luck,

Luckyfool

kevinchapman82

Even after paying your secured debts and DMP, you still have a comfortable joint disposable income of £1700 per month. I know it's not the most helpful suggestion in the world, but I would say to live within your means, and survive on this £1700. A lot of families get by on less, and pay their mortgage out of it too. As time goes on, hopefully your property value will increase, your debt balances will reduce and you will find yourself in a stronger position to remortgage.