Need Advise please?

Jules2054

Hi,
so, I have the following debt that i would like to be free of asap, but not sure how to go about it?
Mortgage 1 ...£5,009.65.
Mortgage 2 ....£7,932.87
Mortgage 3 ....£6,344.68.
Mortgages Grand total...£19,287.20.

credit card (credit security ltd).....£10,711.87,
Amazon...£67.60.
personal Loan....£709.00
credit card (Wescot) ...£1,410.54.
Grand total...£12,899.01

I have checked my credit score on Experian, it is Fair, 839 with a 5% hit rate.
Im disabled and not working. My income is from ESA and PIP which is £ 12,504. annual income.
Im wondering if i can consolidate all my mortgages together to get a better interest rate?
Im paying £317.10 per month collectively already on my mortgages. But im not sure if id be allowed to do that with my credit score?

p.s. I have a works pension due in 6yrs time. This will be @£27,500.

All advice appreciated please?
Thanks!
Jules. x

middleclassbutpoor

You need to do a SOA.

https://lemonfool.co.uk/financecalculators/

use the statement of affairs calculator

when you know what you can afford to repay over min payments, apply to lowest balance and start overpaying. Snowball calculator will help you with this.

if you want help with seeing if you can squeeze more out of your budget, please post on here and you will get lots of suugestions

-taff

What is the equity in the place you live, what are you spending on to need the loan and CC?
Is it possible to downsize and pay off your bills with the equity?


To get a new mortgage you'r going to need a good broker who specialises in your current circumstances.
You could ask on the mortgages board for advice here.

Jules2054

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1042
Other income............................ 0
Total monthly income.................... 1042

Monthly Expense Details
Mortgage................................ 317
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 8
Electricity............................. 91
Gas..................................... 0
Oil..................................... 0
Water rates............................. 2.94
Telephone (land line)................... 0
Mobile phone............................ 6
TV Licence.............................. 13.2
Satellite/Cable TV...................... 0
Internet Services....................... 43.99
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 20.56
Car Insurance........................... 25
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12.5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
window cleaner.......................... 2.5
bank fee................................ 1
Total monthly expenses.................. 788.69


Assets
Cash.................................... 500
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 121000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 19287....(317)......2.68
Total secured & HP debts...... 19287.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
wescot.........................1411......5.........0
amazon.........................67.6......33.8......0
cls............................10712.....10........0
pavillion......................709.......5.........0
Total unsecured debts..........12899.6...53.8......-


Monthly Budget Summary
Total monthly income.................... 1,042
Expenses (including HP & secured debts). 788.69
Available for debt repayments........... 253.31
Monthly UNsecured debt repayments....... 53.8
Amount left after debt repayments....... 199.51

Personal Balance Sheet Summary
Total assets (things you own)........... 121,000
Total HP & Secured debt................. -19,287
Total Unsecured debt.................... -12,899.6
Net Assets.............................. 88,813.4

Jules2054

taff,
What is the equity in the place you live,

I have £100,713.00 in equity on my house.

DCFC79

I find your outgoings are high for 1 person.


My thoughts

Your BB is high at £44.
Is water rates @ £2.94 correct

Electric @ £91 can you get this lower ?
Nothing for buildings or contents Ins ?
Nothing for clothing ?

-taff

Is that enough to downsize and pay your debt off? There are a quite a few factors you're going to have to take into account.
Ask yourself if the debt is increasing not decreasing, can you see a need for further loans or CC spending [intentional or not, so e.g. you're spending on the CCs to live each month, or you're using them for one off big purchases]
Your SOA shows a surplus every month, is this actually the case?


Asking these questions because you're not currently working, and your benefits form your income.
There's not point in remortgaging if you won't be able to pay the repayments and again, given the length of time before you retire [ although some mortgages will continue past retirement age depending] then you have to ask yourself whether it would be better for you to stop trying to service the debts and default and do a DMP. However, your LTV is going to be insanely high so that's good.
Looking at your repayment schedule, it looks as if you are already doing a DMP of some sort? Your repayments on the 10k loan are £10 a month? Is this right?

DCFC79

Jules2054 wrote: »

Im paying £317.10 per month collectively already on my mortgages. But im not sure if id be allowed to do that with my credit score?

Credit history is what lenders see and not your score.

JayRitchie

Do you get a lump sum with the pension in 6 years time? What will your annual income be with the pension?

Are the credit cards interest free - in which case when does the interest free term end?

elsien

No medical expenses at all, given that you are disabled?
Your SOA says you have a £200 surplus each month. It that the case in reality?

middleclassbutpoor

Unsecured Debts
Description....................Debt......Monthly.. .APR
wescot.........................1411......5........ .0
amazon.........................67.6......33.8..... .0
cls............................10712.....10....... .0
pavillion......................709.......5........ .0
Total unsecured debts..........12899.6...53.8......-

Assuming you can find £200 to overpay and without creating anymore income or room in your budget to overpay - you are around 4.5 years off clearing these unsecured loans.

You should be easily fully debt free within about 9 years if not sooner too if you take smallest balance first and just keep all payments to min and apply all spare cash to smallest balance first and when that is cleared, add that payment to your overpayment to snowball your overpayment.

Even if you get a mortgage, to do this in 8/9 years you will be paying around £450 a month depending on the interest rates. If you have bad credit this may be more expensive.

My view is that you should knuckle down and just work through it.