help i'm new will sorting debts affect renew of mortage?

thriftychick

I am in the process of renewing our mortgage which will go from 4.24% to 5.99% :eek: so will cost us nearly £300 more each month. I used a Broker and they had a problem with the fact that we have a credit card with £3,500 on it, they said it would affect our ability to repay. I had sleepless nights over this and phoned the mortgage company direct who said they were unconcerned about the debt. I think if you can show you can repay the mortgage monthly then that is what matters. If you stay with your existing lender, you won't have to disclose any more information which in your case is what I would do.

Dumb_Blonde_3

On a lighter note - I have a whole bunch of baby clothes I could send you - I shopped from the moment I found out I was pregnant to the day before my son arrived and then I was overwhelmed by the amounts of clothes I was brought by friends/family and work colleagues - some of the things he didn't even get around to wearing as when they are so tiny its so comfy for them to just sleep and chill out in their babygro's.

I'm serious about the offer - my loft is about to buckle in with the weight. The clothes are from a 'smoke free and pet free' home too and have only been washed in Fairy Non-bio liquid.

Kind regards,

Lizalu

OK I understand why you're defensive about your dogs, I don't think I'd be able to give my Murphy dog up. However - £130 per month on food????:eek:

If you head over to the OS board you'll see people manage on this for a family of 4! You and your OH should be able to get your food spend down drastically, I mean halve it. And even with the dietary requirements for the dogs surely there's another way?? Even if it's buying cheaper veg. OR buying it just before it goes out of date - if you're freezing it it makes no difference.

I'm trying to point this out as if you don't do anything about it now, in 6 months time you may have no other options than to sell the dogs. Also - get them studding!!! We all have to earn our keep you know!

Dumb_Blonde_3

Charlie Mouse how are you getting on???

rayday2

She started a new thread up yesterday I believe - can't remember what its called.

immoral_angeluk

Right I'm going to pick through this. Apologies if I'm blunt.. but you need to sort this out NOW before the baby comes along with potentially higher mortgage payments and maternity pay. I was in a similar boat last yr 6 months pregnant and on the verge on financial disaster so know what you're going through.

Monthly Incomings:

My salary - £1,700 Any idea what your maternity pay is going to be?? Expect a massive drop when the baby's born!!!
Partners salary - £1000 (varies as husband self employed) never more than £1200
Benefits - £0 Have a look at entitledto.co.uk and put in what your circumstances would be when the baby comes along.

Total - £2,700


Monthly Outgoings:

Mortgage - £992.23 If you are able to downgrade then personally I would. Things are tight at the minute and nearly £1000 for mortgage alone is not helping...
Council Tax - £40.00
Norwich Union House Insurance - £41.94 This seems high.. check around for cheaper quotes.
Payment Shield Unemployment insurance, Critcal illness & life insurance - £201.90 You WHAT???????????? £200 for life insurance???? :eek: Get a cheaper deal as you are being ripped off.

Southern trent Water - £20 if this is over 10 months ask them to take it over 12. We did and it's cut about £7 off our monthly bill.
Southern Electric - £27.00
Heating Oil (no gas etc in village)- £40.00

TV License - £10.99
BT Phone - £50.00 This is very high.. is this calls line rental etc? We use tiscali and for everything including calls we pay max £35 a month.
Mobile phone x 2 - £50.00 DO you REALLY need these? If so reduce the package and how much you use them.
Orange broadband - £19.99 see above note about tiscali.

Pet Insurance x 3 dogs - £80.00 This is also high. Look around for cheaper deals and get basic cover instead of 'premium/gold' etc
Dog food (special diet) x 3 dogs - £130 Why do they have a special diet? Is it essential? Can you get rid of the dogs? :rotfl:

Denplan (husband) - £11.50 How often does he used it?


Car Insurance - £30.82 Check out for cheaper deals.
Car Tax - £15.00
Car Servicing (2 x year) - guessing at around - £35.00
Car MOT - £7.00
Car Diesel - £180.00 Any way of cutting this down or getting a less diesel hungry car?

Van insurance - £30.00
Van Tax - £15.00
Van Servicing (2 x year) - guessing at around - £35.00
Van MOT - £7.00
Van Diesel - £180.00 So you're saying you spend £360 on fuel a month???? :eek: That's a fortune and I'd serious look at other options.


Sky £21.99 Go freeview. Instantly save £21.99 a month.

Food - £350.00 For how many people? If it's just you and your husband you CAN cut this down. I have 2 adults and 2 children to feed and I spent £50 a week. Check out the money saving old style board for tips.

Total: £2622.36



debits
total Min payments: £301.52
Currently you have a deficit of £223.88, this no doubt is being funded by credit cards but at the rate you're going you're going to end up in financial meltdown. Not what you need with a new baby, let alone drop in pay due to maternity pay or increased mortgage!!!!!!!

immoral_angeluk

charliemouse wrote: »

council tax....appoligies i was wrong our council tax is £120 per month not £40

so our total out goings should be an extra £80.00 higer than i said

thanks everyone for your help.

I will look into the food bills. but what with the baby on the way I'm not sure how much lower this will go what with nappies to buy etc.

A note on the nappies etc. I've got a 2 yr old and a nearly 9 month old. Both in nappies.. the baby on formula milk. We spent £50 a week on groceries including food, toileties and baby things.
I'm not blowing my own trumpet but I would suggest reading my diaries... (Immoral Angel's Debt diary and IAs does my bum look big in this debt diary). We've had to struggle by on a low income while dealing with debt and a new baby so I really think it might give you some ideas.

charliemouse

Hi thought i would update you all on my progress so far - although it is very small :-(

Mortgage £182,000
we had the finacial advisor out on Tuesday re the mortgage. Because of interest rates he has advised us that we will not be able to get as good a rate as what we have now - so the mortgage will go up. He is having a look around for the best deal that he can find us and will get back to us. (i asked and he doesn't work for set companies but whole market :-))

Debts £22,000
Still not sure what to do re the debts until we find out how much the mortgage will be.... unsure still as to what todo regarding our overdraft (started a new thread yesterday about this)..... not sure whether it is best to move it to a credit card or leave it where it is?

Maternity Pay
regarding maternity pay - i see someone asked about this - my pay will be staying the same.... I am only able to take 12 weeks off from work, but have just enough savings in an ISA to be able to keep my income the same.

Food shopping
I am currenly keeping a food diary & have been cooking set meals for the past week - have been able to freeze some as well which will save a bit for next week. Hoping to do this for the next 3 weeks so to see if we can save anymoney here.

Pet Insurance
Looked into the Pet insurance - an unfortunatly we cannot move two of the dogs covered as it pays out for life for existing claims. where as most companies don't.....also if you change companies they will not cover you for anything that you have previously claimed for - which having a dog with a chicken/protein allergy is not finacially viable to change the cover seeing as he has spent time at the world most expensive dog hotel -The Royal veterinary college in London :rotfl: .

I am going to look into the cover for the youngest dog though as we have never used her policy to claim.... so hoping to maybe save a little here.

Electricity
I phoned our electricity company (southern electricity) & changed to direct debit - will only save 5% but i guess this is something.

House & Contents insurance
Looked into this & i had written the figure down incorrectly
we are paying £36.58

Life insurance / critical illness x 2 People (1 x selfmployed, 1 employed)
£191.07


Unemployment cover (for me only as i am higher earner with specialist job)
£17.19

Broadband
Looked into changing provider of this - however we are unable todo so as it would mean that our email address would have to change, and as this is used for my husbands buisness it would mean that everything e.g van signs, website, buisness card etc etc would have to be changed.

Phone
Looked at this & we apparently can get cheaper calls to mobile etc by using our broadband livebox - think it said on the orange website that it costs 4.5p for mobile calls - where as BT is about 12p. (All other calls through BT are free as we pay £35 per month set figure for all calls exc mobiles & premium rate) so am going to try this for a month to see if it makes a difference. Had alook at our bills and the expense is coming from when my husband has to phone mobiles for his work. Also going to look at doing calls through skype - we already use this for webcam calls to spain, so i'm sure you must be able to phone mobiles from it.

Deisel
Someone said to downgrade the vehicles - unfortunatly with all the equipment that my husband needs for his job he has to have a transit style long wheel base van - otherwise he would be over the weight limit & could be done for this!....so sorry this is not an option to get rid of this.

I only have a small deisel Ford Focus -which i have been watching the MPG reading & on average i am getting 54 MPG......which that doesnot seem bad to me?......unless anyone can let me know otherwise????? what should i be getting?????

Mobiles - re getting rid of these
Mine is already pay as you go and i probably use £5 credit per month - don't think i can reduce this anymore.
My husbands is contract - which he has to have for his buisness. haven't had chance to check the tarrif on this yet


SKY
think i already answered this previously...but will answer again.

We cannot get freeview or dgital in our village - we are goignt o be one of the very few places in the country which will not be able to get it due to our location. We were advised to get sky & then not renew the policy after the 12 months is up - we will then still be able to keep the satalite dish and get the digital channels with out the sky part.


This is all i have managed to look into so far.... don't really feel like i have progressed much, but have at least got the husband talking about it all now rather than hiding his head in the sand!.....

I will keep you all updated - & thank you all for your support it has been greatly appreciated.

rayday2

I found out last week when I rang SKy that you can cancel your subscription and still get the free BBC and ITV channels not sure if that little helps a bit!

You could go to your internet provider say you want to stay with them but that they are not as competitive price wise see what they offer - worth a call!

charliemouse

rayday2 wrote: »

I found out last week when I rang SKy that you can cancel your subscription and still get the free BBC and ITV channels not sure if that little helps a bit!

You could go to your internet provider say you want to stay with them but that they are not as competitive price wise see what they offer - worth a call!

good idea about the internet provider - does anyone know what the standard rate for this should be?.... only thing is i think we might be tied into a 12 month contract, i will have to ahve a look to see when this ends though