Disposable Income

Roline83

Hi

I’m currently in the process of proposing a plan to clear the debt which I’ll be left with after being stuck with a shortfall on completion of the sale of our house. I spoke to the lender today who received the income and expenditure form I sent which said we had £245 disposal income at the end of each month. They’ve looked over things and from their calculations they have nearer the £600 figure.

What is classed as non priority outgoings as when I’m looking at things and doing the form again, it looks like they’ve not taken childcare into account. Are there any other things?

Thanks

fatbelly

It's difficult to push a house sale through when there's a mortgage shortfall, as you are discovering. If agreeing to £600 does the job you may have to do that then default later.

Try having a chat to National Debtline.

They do a factsheet on negative equity, here:

https://www.nationaldebtline.org/EW/factsheets/Pages/negativeequity/mortgageadvice.aspx

natlie

Hi

Are you and your partner working - if not then childcare won't count

You could post an SOA up, if you are spendign over the average on things like groceries and clothes they will reduce this to the average amount for a family of your size

Nat

National_Debtline

Hi Roline83,


If the house sale has not yet gone through, then please be aware the lender can refuse to let the sale continue if the sale price won't satisfy the debt secured. If they agreeing to let it continue, but want a clear proposal to pay the shortfall, then your SOA should be based on the future outgoing, rather than what you have now (which is hard).


When you do a SOA you should look at your income, and then minus your essential bills like rent/ mortgage, council tax, gas, electric, water, TV Licence, insurances, phone, travel, food, clothes etc. You shouldn't include any payments to any debts.


If you have any non priority debts (like credit cards, loan, overdrafts, catalogues etc) then these should be treated in the same way as the mortgage shortfall. You would need to make each debt a proportioned monthly payment. The best thing to do is put your SOA up so that we can try and guide you further.


Laura
@natdebtline