Trapped in Barclays Mortgage

tom1916

I have a Barclays mortgage for the past 10 years, I am not financially savvy and they advised me that I should also take out a 'bridging loan' (variable rate) in tandem with the mortgage. I am now in a situation where I live in a house valued at £90,000 to £100,000, I have abridging loan of £55,000 and a mortgage of £90,000. I have a good job as a contractor but I find that I am just threading water (to the extent that I had to enter an IVA last year), I work every day and hour that I can and I have never missed a payment of mortgage or bridging loan but I can never overpay either and as such the interest on the loan is just increasing the amount I owe all the time. I have written and spoken to Barclays for weeks all to no avail and I am at my wits end, all I want is for the mortgage and loan to be combined under a new repayment mortgage that I can manage. Can anyone please offer any advice.

AnotherJoe

See a mortgage broker and see what's available

Brock_and_Roll

Op,

Your post is a little confusing as a bridging loan is usually a short term loan to finance the purchase of an additional property. Can you confirm that you only have the one house?

Also do you know if you are making capital repayments on either of these loans or are you paying "interest only". You say you have never missed a payment, but you also say that the balance on the "bridging loan" is rising...this would only be the case if you were not covering the interest each month on the balance.

In terms of your final comment about combining the loans, how do you think this would help i.e. still paying back loans of £145k on a house worth £100k - is it a high rate on the bridging loan that is the killer her?

amnblog

Sounds like a Barclays reserve account.

Would that be the correct term?

If so, Barclays price the reserve account at a higher rate than the main account.

ACG

As far as I am aware Barclays do not do Bridging loans and never have done? Are you sure it is a bridging loan?
They used to do a Reserve Account?

There is little point seeing a broker, a broker is not going to be able to switch you to a lender when you are at nearly 150% LTV and in an IVA. You probably should have taken advice before going down the IVA route as it may have been possible to take out a loan to pay off part of the expensive debt and reduce your payments that way - rather than trying to do it all in one hit.

To be completely honest, I think you need to speak to stepchange and potentially consider repossession and bankruptcy if you can not carry on as is - but they are better qualified on that sort of thing than I am.