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Pownstar69
Pownstar69 Posts: 11 Forumite
My and my wife moved house nearly two years ago old style dorma bungalow. At the time money was seemingly good and stupidly we have taken out two loans to do work to the house. My car broke down and ended up purchasing a nearly new car. To cut a long story short we are paying out nearly £850 a month in debts and it is crippling me. My wife suffers mental health issues and this is really not helping matters. We have a mortgage which is due for renewal soon. We have asked to see if we can do a remortgage (to pull out 26k to pay off 60% of the debt but because of the amount of debt that might not be an option. What options do I have that won’t effect my mortgage options?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Any further borrowing will impact a remortgage application. However, if things are as tight as you say, you won't be able to get further borrowing in any case.

    Go to the DFW boards for advice on cutting costs.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Hi,

    It might be useful to see your budget. You might want to post a Statement of Affairs (SOA). If you do post your soa then please could click on the 'format for MSE button' at the bottom of the form.

    http://www.stoozing.com/calculator/soa.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    List out the debts and interest rates - get as much debt on 0% or low interest as you can - do the PPI reclaim thing and pay any refund into your debt, assess your monthly budget, sell the nearly new car and buy one for £2000, sell as much stuff as you can to reduce your debt.

    If all that doesnt help you then consider further options, but pulling equity out of your home isnt one I would favour - if £26K is 60% of your debt then clearing this wont really help you, it will just seem like it will.
  • Pownstar69
    Pownstar69 Posts: 11 Forumite
    When I say 60% of the debt I mean 3 of the debts would be clear by remortgaging and would leave 1 left.
  • Money_maker
    Money_maker Posts: 5,471 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Turning unsecured debt into secured debt is rarely a good idea. This could potentially put the house at risk. You wont be clearing debts, it will still remain but in a secured format.
    Please do not quote spam as this enables it to 'live on' once the spam post is removed. ;)

    If you quote me, don't forget the capital 'M'

    Declutterers of the world - unite! :rotfl::rotfl:
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Pownstar69 wrote: »
    What options do I have that won’t effect my mortgage options?

    I gave you options in my previous post based on your question.

    Good luck
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Pownstar69 wrote: »
    When I say 60% of the debt I mean 3 of the debts would be clear by remortgaging and would leave 1 left.

    You wouldn't clear the debt as you would still owe the money it's just then it would be secured against your home. :eek:

    Consolidation is not the answer, heading over the Debt Free Wannabe board is though.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Pixie5740 wrote: »
    Consolidation is not the answer, heading over the Debt Free Wannabe board is though.
    ...and posting your SOA would be helpful too (for best advice) :)
    http://www.stoozing.com/calculator/soa.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    ...and posting your SOA would be helpful too (for best advice) :)
    http://www.stoozing.com/calculator/soa.php

    Indeed. You need to know where you are so you can best work out how to get to where you want to be.
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