Advice required

fatbelly

FYI

Following a meeting with government and the Financial Conduct Authority (FCA) on 7 December, lenders have said they will:

• enable borrowers who are up to date with payments to switch to a new deal without another affordability test

• provide timely information to help customers plan ahead should their current rate be due to end

• offer tailored support to those who start to struggle with payments. This could include:

  • extending the mortgage term

  • short-term reductions in monthly payments 

  • interest-only payments

The FCA has published a consultation on draft guidance for lenders and information for borrowers on the options and support available.

https://www.fca.org.uk/news/statements/guidance-firms-supporting-mortgage-borrowers-rising-cost-living

https://www.fca.org.uk/news/news-stories/support-available-mortgages-interest-rates-rise

flipflopflo

How much equity is there in the house?

enthusiasticsaver

I still would not recommend using your pension.  You have a decent surplus so should be able to weather any higher mortgage repayment without using the TFLS on the pensions. It may mean some belt tightening and a slower reduction on the unsecured debt though. 

kimwp

I'm honestly a bit confused when you say that your situation is so bad. According to your SOA, you had £1600 surplus after paying out everything for a comfortable life (as opposed to a very frugal life) and your debt payments. If your mortgage has gone up from <£500 to £1000, then you've still got roughly £1000 a month to put towards the debts or paying the mortgage. 

Sea_Shell

kimwp said:

I'm honestly a bit confused when you say that your situation is so bad. According to your SOA, you had £1600 surplus after paying out everything for a comfortable life (as opposed to a very frugal life) and your debt payments. If your mortgage has gone up from <£500 to £1000, then you've still got roughly £1000 a month to put towards the debts or paying the mortgage. 

There's obviously something adrift between OPs figures shared here and the reality.

What other measures have been taken to save money since this thread started?  

Maybe a revised SOA would be a good idea.   I know I've lost track.

zAndy1

flipflopflo said:

How much equity is there in the house?

About £70-80k , I guess the sensible thing to do would be to sell the house , pay off debts and start again really

zAndy1

Updated SOA

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

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

Number of children in household......... 0

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

Monthly Income Details[/b]

Monthly income after tax................ 3150

Partners monthly income after tax....... 1950

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

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

Total monthly income.................... 5100[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 980

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

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

Management charge (leasehold property).. 0

Council tax............................. 200

Electricity............................. 100

Gas..................................... 100

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

Water rates............................. 30

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

Mobile phone............................ 20

TV Licence.............................. 13

Satellite/Cable TV...................... 42

Internet Services....................... 32

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

Clothing................................ 100

Petrol/diesel........................... 300

Road tax................................ 40

Car Insurance........................... 30

Car maintenance (including MOT)......... 40

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

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

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

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

Medical (prescriptions, dentist etc).... 22

Pet insurance/vet bills................. 63

Buildings insurance..................... 20

Contents insurance...................... 20

Life assurance ......................... 50

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

Presents (birthday, christmas etc)...... 40

Haircuts................................ 20

Entertainment........................... 100

Holiday................................. 300

Emergency fund.......................... 50[b]

Total monthly expenses.................. 3112[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 240000

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

Car(s).................................. 9000

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

Total Assets............................ 249000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 164000...(980)......7.14[b]

Total secured & HP debts...... 164000....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Credit cards 0%................37000.....500.......0

Loan...........................15000.....395.......2.2

Credit cards standard..........4000......50........12.9[b]

Total unsecured debts..........56000.....945.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 5,100

Expenses (including HP & secured debts). 3,112

Available for debt repayments........... 1,988

Monthly UNsecured debt repayments....... 945[b]

Amount left after debt repayments....... 1,043[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 249,000

Total HP & Secured debt................. -164,000

Total Unsecured debt.................... -56,000[b]

Net Assets.............................. 29,000[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Sea_Shell

Do you actually have £1000 spare at the end of each month??

Also £400 for groceries seems high for two adults (plus pet?).  Where do you shop?

zAndy1

Sea_Shell said:

Do you actually have £1000 spare at the end of each month??

Also £400 for groceries seems high for two adults (plus pet?).  Where do you shop?

Well no we don't actually have £1000 spare at the end of each month as we're paying probably double the minimum payments on the credit cards (paid £1150 this month) but yes I'd say we have around £400-£500 left at the end of each month. Let's not forget though, the vast majority of the credit card debt is currently at 0%, when that changes which will start happening in April assuming I can't get new 0% interest offers (and I aren't getting any at the moment) the c/c min payments will increase massively and at that point we'd have a net deficit not a surplus and be making hardly any dent in the credit card balances either 
Yeah shopping perhaps a bit high , maybe £350 more realistic , two pets and feeding them ain't cheap. Shop at Tesco , Lidl and Aldi mainly

Singlespeeder

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

Mortgage...................... 164000...(980)......7.14[b]
Is this right? 7.14%

if so I must have my calculations way out because by my reckoning 7.14% of 164k is  £11,709
and £980 x12 is £11,760 so you're not actually paying anything off the mortgage
I suspect my maths is wrong somehow.