181k in Debt - Need Help

Ponylover

I've no real advice but just wanted to say well done for being so entrepreneurial with the nails. 

Chrystal

Just jumping in to wish you luck!

Glad you're OH has managed to get back to work and hopefully he won't have to wait too long to get paid.  Helping each other out is really what needs to be done and maybe Karma will repay you the favour.

Subscribing to cheer you on. X

Narola1976

Just wanted to say you are doing really well and to wish you good luck. you are doing amazing

daniellemaire

Thank you so much - I didn't expect so many people to read my updates - really appreciate it xx 

enthusiasticsaver

Why do you want to remortgage?  Are you paying a high interest rate?  Getting a remortgage when you are self employed is not easy even if you don't have debt due to confirming income. I would caution you on turning unsecured debt into secured even if you think the house has gone up in value simply because there is every indication we are heading into a property slump and recession. That could mean a poor rate as the loan value to property value will increase. You may also run the risk of moving into negative equity depending on the buoyancy of your local property market. 


The biggest debt is to your parents and I would assume when you bought the house you did not tell your lender that you borrowed the deposit because they would have refused to lend to you on that basis simply because it has put more pressure on your finances not only paying off the mortgage but also the deposit. 

I would prioritise the HMRC and council tax debts simply because they are both priority debts and unless you have made arrangements they can arrange for attachment of earnings which will destroy your credit record. As you  say there is some leeway with tax at the moment because of Covid but have you arranged to pay the council tax late?  Is that just one months payment? 

The unsecured debt apart from that though appears to be relatively under control in spite of your current employment difficulties and good you have managed to make some income in lockdown.  After the council tax and HMRC  debts I would focus on the overdrafts which will be charging 40% interest unless you have made other arrangements.  Any arrangement though will lead to a default which again will affect your credit record. 

IrishSean

Excellent advice all round

GL on your journey, hope it all goes well. Bag all the advice so far, I can't see anything to add TBH.

daniellemaire

enthusiasticsaver said:

Why do you want to remortgage?  Are you paying a high interest rate?  Getting a remortgage when you are self employed is not easy even if you don't have debt due to confirming income. I would caution you on turning unsecured debt into secured even if you think the house has gone up in value simply because there is every indication we are heading into a property slump and recession. That could mean a poor rate as the loan value to property value will increase. You may also run the risk of moving into negative equity depending on the buoyancy of your local property market. 


The biggest debt is to your parents and I would assume when you bought the house you did not tell your lender that you borrowed the deposit because they would have refused to lend to you on that basis simply because it has put more pressure on your finances not only paying off the mortgage but also the deposit. 

I would prioritise the HMRC and council tax debts simply because they are both priority debts and unless you have made arrangements they can arrange for attachment of earnings which will destroy your credit record. As you  say there is some leeway with tax at the moment because of Covid but have you arranged to pay the council tax late?  Is that just one months payment? 

The unsecured debt apart from that though appears to be relatively under control in spite of your current employment difficulties and good you have managed to make some income in lockdown.  After the council tax and HMRC  debts I would focus on the overdrafts which will be charging 40% interest unless you have made other arrangements.  Any arrangement though will lead to a default which again will affect your credit record. 

Wow, that's some good information!  If I'm honest, the whole remortgaging thing was my mortgage advisor.  I bought the property on my own and my partner has signed paperwork with Natwest saying he is allowed to live here.  I was in a meeting with my parents and my mortgage advisor, and my dad said to the advisor that he is giving me the money for the deposit, but he would like it repaid back eventually so they can help my brother buy a property - I don't think the advisor told Natwest about repaying it.  It was the mortgage advisor that said that's ok, Danielle can just remortgage in 3+ months and you'll get your money straight back. 
Stupidly, I never really thought about it, or looked into it and I never thought about it, until I read your comment. 
This is scary times, fingers crossed everything works out ok and the house price doesn't drop too much.
The council tax is a bill that they sent me, but because we didn't have any rubbish bin, recycling bins or food waste bins, I rang them up and said I'd pay the bill as soon as the bins arrive - they only recently arrived, 3 months after moving in, and after receiving the bill - so they've not chased it as I told them I wouldn't pay until I get the bins.  I get paid next Friday so I will be paying this off straight away. 
Thanks again, you've given me a lot to think about 

Sarahwithlove

What's your current mortgage rate? If you are looking to remortgage so quickly it must not be a fixed rate? Are your parents pushing for the money back? Are they willing to wait for you to get in a better position financially? Loans and credit cards will have a negative impact on the amount you can get. Although now is a good time in terms of interest rates the value of properties are dropping so if you take out too much more of a mortgage you could end up losing out. 

Moneywhizz

I was wondering too why you are in such a rush to remortgage. It is clearer now that you want to do so to pay back your parents. As you said in your opening post though it might be more difficult given the level of debt that you have and the current situation where there could be a drop in house values. Could you have a conversation with your parents about paying back the loan with regular monthly payments until you are in a better position to raise the money, either through a loan or by remortgaging. Or even better as has been suggested would they be willing to wait for the money until you have managed to clear most of your debt? It is a difficult time for everyone but hopefully things will pick up soon and having your boyfriend earning and your own business up and running again, will put you in a much better position. 

Kakiste

Following you.
Awesome work on the nails- I do lots of sewing and my husband does metalwork and woodwork to raise extra income. That's worked well as a motivator for if we want to do something more expensive such as eat out or go somewhere pricey. 'Have to raise £40 today so we can do X, what can I make to do that?'

Are you a beautician/nail technician(?) as your main job or is this a side project?