Debt consolidation/remortgage/SOA

Thrugelmir

Naomim said:

Also you can generally remortgage with your current provider and they will not do the hard credit checks on you. We did this as our fixed rate was ending. With same provider but on a better fixed rate now.

This isn't a remortgage. Just a product switch. Which if done online requires the lender to perform no due dilgence. Your mortgage is the legal charge which secures the debt. Otherwise it's just a loan like any other. 

EssexHebridean

Did you manage to do the format for MSE bit? The option should be at the bottom of the completed SOA. 

I'm going to echo the many others who've already said not to adding the debt to the mortgage - really NOT a good idea, particularly in light of the fact that you are also considering extending the debt/mortgage further to cover works to the house. Right now this is even more true - mortgage rates ARE going to go up, and you'll potentially have little control over how much you might find yourself having to pay when any fixed rate ends. 

Get your spending under control first, tackle the consumer (I assume) debt at the same time, and only once you have done those things should you even consider remortgaging to have the works you want done. Personally I'd say get yourself to debt free status then start saving with an aim to save at least 50% of the cost of the work before you go ahead. That should put you in a good place to fund the balance of the works via a standard loan over a far shorter period too - a cheaper way of going about it. 

Cazmeena

Finally completed it sorry if it’s a bit all over the show I’m doing on
my phone. 

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 1780

Partners monthly income after tax....... 2300

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 4080[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 900

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 189

Electricity............................. 65

Gas..................................... 65

Oil..................................... 0

Water rates............................. 50

Telephone (land line)................... 0

Mobile phone............................ 70

TV Licence.............................. 14

Satellite/Cable TV...................... 95

Internet Services....................... 0

Groceries etc. ......................... 400

Clothing................................ 50

Petrol/diesel........................... 150

Road tax................................ 29.75

Car Insurance........................... 53

Car maintenance (including MOT)......... 25

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 36.72

Pet insurance/vet bills................. 26.25

Buildings insurance..................... 10

Contents insurance...................... 23.11

Life assurance ......................... 89.06

Other insurance......................... 0

Presents (birthday, christmas etc)...... 48

Haircuts................................ 0

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Cleaner ................................ 100

Lottery ................................ 26

Charities .............................. 10

National trust ......................... 10.5[b]

Total monthly expenses.................. 2535.39[/b]

[b]

Assets[/b]

Cash.................................... 4000

House value (Gross)..................... 395000

Shares and bonds........................ 0

Car(s).................................. 2

Other assets............................ 0[b]

Total Assets............................ 399002[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 162000...(900)......1.39[b]

Total secured & HP debts...... 162000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Halifax........................2242......53........19.2

Barclaycard ...................2284......73........17.3

Sainsbury’s ...................3227......89........21.1

Loan...........................17120.....381.......5.4

Loan ..........................7785......192.......5.7

Loan ..........................11100.....215.......5.3

Tesco .........................700.......25........17.1[b]

Total unsecured debts..........44458.....1028......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,080

Expenses (including HP & secured debts). 2,535.39

Available for debt repayments........... 1,544.61

Monthly UNsecured debt repayments....... 1,028[b]

Amount left after debt repayments....... 516.61[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 399,002

Total HP & Secured debt................. -162,000

Total Unsecured debt.................... -44,458[b]

Net Assets.............................. 192,544[/b]

Feeling a little bit ugh  now it’s all written down… bit info 2 loans and three main credit cards in husband name he has fine credit score just checked today but nothing being offered on 0% credit cards etc I have been offered money transfers so I could transfer into my name ? As I only have the Tesco CC and £17k loan is that advisable ? 

Look forward to hearing from you … please go gentle I know our mistakes.  

Penguin_

Well done on the SOA! 

Others will be along to have a look & comment but for me the ones I see straight away as a bit high are:

Life Assurance - £89 a month is a lot, I think off hand mine is around £12 for myself.
Mobile Phone - are these (assuming there are 2) in contract? If not, is it possible to move to SIM only?

Penguin_

Also you're showing over £500 left over at the end of the month, is this actually the case? If not you may want to start a diary of your day to day spending to see where it is actually going.

Cazmeena

thank you .. good ideas will start my to do list to see which ones I can try and save money on the higher one is for my husband mine is £16 but still worth looking at it’s a life cover and critical illness I had to use mine in the past that’s why we prob haven’t looked at that one. 

Yes mobile is for 2 phones will look at that too!  

kimwp

Well done on posting your SOA.

A few thoughts in addition to penguins:
- gas and electricity are high!
- water is high- if just the two of you, a water meter would be better as it should bring it down to under £20 (unless you have unusual water usage)
- your cash is just over one month of expenses. While you have debt, it's better to pay that off, but once you are debt free, you should be trying to increase that to three months minimum.
-if your SOA is right, you have more than enough to cover your debts, it's therefore really about do you want to spend on things that you don't need and pay the debt more slowly or cut back and pay it off faster.

Cazmeena

Sorry not sure what happened … will look at gas electric and water is on a meter we have 3 in our house but do you think that’s a lot ? 

kimwp

Cazmeena said:

Sorry not sure what happened … will look at gas electric and water is on a meter we have 3 in our house but do you think that’s a lot ? 

My water bill is just over £12, when I had a lodger I think it went up to £14-£15. 

My gas and electricity bill is £65, which is what my provider predicts for one person in a four bed. It actually went down to £27 per month average once I'd switched to a new boiler and got my windows sorted, even though I was working from home (but then I switched provider and they wanted to stick with their prediction). I heat all of the downstairs, my bedroom and my bathroom to 18C and usually cook dinner every day. I try to switch off lights, TV and chargers at the socket when I'm not using them, but don't bother with the cooker, microwave, kettle etc.

TheAble

Our utilities are identical to yours op, admittedly with a couple more in the house but we rarely heat above 16c. Kimwp to be sure is doing well in that department but I don't think your figures are that outlandish, given how much gas prices have risen and there's more WFH going on.