Remortgage to clear a tax bill

HandyAndy94

[FONT=&quot]Hi All[/FONT]

[FONT=&quot]All opinions welcome on the following topic including those who just fancy a quick snigger.[/FONT]

[FONT=&quot]A few years ago I was involved in a business which initially ran very successfully but then sank spectacularly due to a terrible business decision. The tax man came knocking and my fellow business partners scarpered leaving me to foot the bill. After selling pretty much everything I could get my hands on I was left with £100k which I have been eating into over the last 18 months. I pay them £3k a month and now have £49k left.[/FONT]

[FONT=&quot]When this all blew up about two years ago I did talk to a couple of high street banks about a re-mortgage to clear the debt and when I mentioned the amount owed you could hear a pin drop. Needless to say the applications didn't go any further...[/FONT]

[FONT=&quot]In terms of the numbers my house is worth about £300k with a mortgage of £180k on it. I work about 65 hours a week over two jobs which gives me about £52k a year. I think the work pattern is sustainable (as I have been doing it for over six months now) but some lenders might think otherwise and that is a real concern...[/FONT]
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[FONT=&quot]I would love to clear the remaining balance as soon as I can but after paying the tax office and household bills I am left with really very little each month. This now really must change for my own sanity if nothing else.[/FONT]

[FONT=&quot]I have never been behind with paying debts (other than this tax bill!) and thankfully my credit is very good. No other loans or credit cards to worry about. I have very little knowledge about the mortgage market or loans or finance options available however so any guidance would be very welcome.[/FONT]

[FONT=&quot]What would you do if you were me??[/FONT]

[FONT=&quot]Andy[/FONT]

Thrugelmir

Will the HMRC not accept a lower monthly amount?

[Deleted User]

Sit down and see what options are on the table.
The number of lenders who will allow remortgage to clear a tax bill is very very small (although some good ones will still do it so rates may be OK)

6 month history of 2nd job should be enough for most lenders so don't worry about that bit. Number of hours is more than I wouod want to do but I doubt it would be questioned

The actual numbers to borrow enough seem feasible based on the little information here.

Putting debt on a mortgage is rarely a good idea but if its affecting your enjoyment of life then that's probably a bigger issue than having a slightly bigger mortgages. Although, playing devil's advocate, another 18 months of pain and the debt is gone without putting it on the mortgage.

I don't think anyone would judge negatively for putting it on the mortgage.

You also don't have to do it over the full mortgage term. You can have your existing mortgage term and then take this over 5 years for example to give a bit more breathing room without taking it for too long

Moneyminded

Ouch! That's quite the tax bill. Congrats on paying it down so quickly, you are over half way there which is a big achievement. Personally if you have managed this far and you think your working pattern is sustainable I would keep going and get it gone as quickly as possible. The whole thing could be paid off by May next year at the rate you are going.

Whatever you choose has to be right for you though. Perhaps go and see a broker to see what options might be available to you now that the sum you want to borrow is half what was originally requested.

Good luck