Could I lose my home.

fatbelly

That's OK. Keep posting.

CKhalvashi

I'm also of the opinion that on these figures, at least for the unsecured debt, you'll be far better off not going down the formal insolvency route.

Depending on his income this year (which IIRC will include the grants), there may or may not be an additional amount received next year for you. This will be worth looking into.

Also, as you're probably aware, the going rate for many self-employed has decreased significantly last year, so he may be busier on a low income. That's sadly the reality of the current situation.

Mum2Boys_2

Hello everyone a bit of an update! I have gone through everything with stepchange.

It’s taken me ages to get things sorted, I am currently looking at a “token payment plan” to give me some breathing space whilst I try and sort my debt out. 

We have gone through my budget and the longer term suggestions are a 
settlement plan- meaning I sell my asset (house) and offer up a smaller payment. 

Or a IVA lump sum of £33000 which would also mean selling my house. 

A dmp is not right for me at the moment as I don’t have the £55 after all of my outgoings to do this although I may be able to budget for this and with the token pp may manage to clear them sooner. 

My sister has offered to come on to my mortgage to free up some cash to do a settlement offer rather then risk me loosing my home, my current ltv is 62% to the bank, doing this would mean my ltv going 78%. 

I asked the stepchange advisor if this was even an option and she said it could be. 

Has anyone had any experience in this? 

MattMattMattUK

Mum2Boys_2 said:

My sister has offered to come on to my mortgage to free up some cash to do a settlement offer rather then risk me loosing my home, my current ltv is 62% to the bank, doing this would mean my ltv going 78%. 

I asked the stepchange advisor if this was even an option and she said it could be. 

It might be possible, it depends on the lenders view about your sister being on the mortgage and as an interested party in the property, as well as any impact that might have on her (eg if she has a mortgage, a requirement for all people on the mortgage to live in the property, HTB etc.). I helped my sister a few years ago and there were too many complications to going on her (and my brother-in-laws) mortgage, so in the end I gifted her the money and my mum adjusted her will to take account of that (although I accept I might never receive anything from that). 

I am guessing you have as you have been working with StepChange, but have you made sure you are claiming all you are entitled to as well as any employment income etc. Also, in relation to the borrowing you have, was any if it pay day loans etc. as they could be regarded as inappropriate lending so you might be able to get the interest, fees and potentially the loan itself written off. 

How far off of being able to meet the requirements for the mortgage would you be without your sister being on the mortgage as well? Have you spoken to a mortgage advisor, or used calculators to find out what you could potentially borrow? 

Mum2Boys_2

I have done a calculation online and due to my sisters level of debt it is unlikely we will be able to do this. 

The frustration for me I guess is that (and I am well aware I got myself into this mess) is that I will be losing my home for the sake of around 17k. Although it would be tight, I could live off what we would have left after paying all my little bits and bobs. 

I guess it might be worth looking to complete the payments on my car as that may open up the option for an IVA. 

MattMattMattUK

Mum2Boys_2 said:

I have done a calculation online and due to my sisters level of debt it is unlikely we will be able to do this. 

The frustration for me I guess is that (and I am well aware I got myself into this mess) is that I will be losing my home for the sake of around 17k. Although it would be tight, I could live off what we would have left after paying all my little bits and bobs. 

I guess it might be worth looking to complete the payments on my car as that may open up the option for an IVA. 

Have you thought about going on the Debt free Wannabe board on this forum? You would have to post a statement of affairs, it would detail all your income and outgoings and people will help you work out what you can really afford. It might feel a bit brutal as a lot of things you will be told to stop spending money on, reduce outgoings etc. but it could also help a lot and everyone there is there with the intention of helping, if it means you have an extra few hundred a month from the process it would be worth it is and it is often amazing how much people can save when they think there is nothing that they can save. 

If you do not mind me asking what form are the £17k debts, credit cards, loans, payday loans overdrafts, car finance, buy now, pay later, debt collectors, etc? I am thinking of options where any debt which attracts interest can either be moved to interest free options or potentially be written off (payday loans being written off is a possibility if they were not affordable at the start).

Also and I understand it is difficult both at the moment and having children, but is there any way you could increase your income at the moment as even a small amount can make a big impact when the entire amount can be directed at debt repayments. 

Mum2Boys_2

I think I will post my budget plan on the debt free wannabe as I do need to save money. I have calmed down a bit now from the panic and after speaking some more to family. My sister has offered to pay £60 a month for my boys pocket money (I don’t give them any other money for sweets or treats, they keep the house clean for this). 

This would mean that I then have the possibility of doing a dmp..... my car would of finished being paid off in Feb 22 this would free up £170 per month meaning I would be able to then apply for a normal Iva as I need around £93 a month to pay on to one. My car is just a plain functional focus, not really worth selling but does what I need it to do and is cheap to run. 

My debts are 
overdraft
cc
loan
store card
never done a pay day loan. 

MattMattMattUK

It could really be worth the DFW as the people on there are great at finding ways to save. You might be able to claim a small amount back on your insurance for fewer miles, if your income is below a certain level discounted energy tariffs etc. it is unusual that they would not be able to find you something to save on.

You might be able to get the interest frozen on the credit card and store card and possibly the overdraft as well if you commit to paying a certain amount off every month and at the end of it having not overdraft. the savings on the interest on those alone might make things much more manageable. 

Good luck, I hope you can make some decent headway in getting the debts sorted. 

Mum2Boys_2

Thank you, I currently have the interest frozen but I’m not sure if this will continue if I enter into a “token” payment scheme, same with a debt relief order, although I have been told that an IVA could write off 75% of the debt I took out so I’m assuming that the interest gathered during the token scheme and dro won’t affect my chances of doing that? 

MattMattMattUK

That is not my area unfortunately, I think the 75% right off is usually to reflect that a lot of what is outstanding can often be interest, eg the original debt was long paid but the total debt still exists because of interest charges. 

The only other thing, what interest rates are you paying on the primary and second mortgages, can you negotiate with your lenders to get those down as even half a percent on £150k is not insignificant.