Will I lose my home?

1356

Comments

  • AdmittingDefeat
    AdmittingDefeat Posts: 17 Forumite
    10 Posts First Anniversary
    kimwp said:
    AdmittingDefeat said:
    Thanks for advice so far. SOA- will need some time to sit down and sort that so it’s as accurate as possible.

    To give more info, we are in shared ownership, so mortgage (40%) and rent (60%). I did wonder about contacting the housing association that we pay the rent to, as well as mortgage provider, to see what support they could offer. Little one will receive the 30 ‘free’ hours in January 2025, but if the recent childcare announcements come to fruition (which I highly doubt with this government) then he should be eligible for 15 hours next April. 

    Recently consolidated 3 credit cards and a loan into 1 larger loan which has almost halved my monthly payments, with the aim of building up an emergency fund before mortgage increases.
    You seem to have lots of the right thinking to be able to navigate this - you are solving the issue a year ahead and you want to get your SOA accurate. I have every confidence that with a little bit of help from us, you'll be on a good path very soon, so try not to worry.

    To get your SOA accurate, the easiest way is to look at the last 12 months of statements - this will show you any annual payments that you make. 
    Thank you for the reassurance- I will get my SOA done ASAP but with a toddler, running a house and a job with long hours, finding time is difficult! I will make sure to find some time to do it thought as I don’t want to shy away 👍🏻
  • kimwp
    kimwp Posts: 2,605 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    AdmittingDefeat said:
    Emmia said:
    AdmittingDefeat said:
    I am keeping one in case of emergencies and plan to close the accounts of the other two. 
    Plan to close.. 

    Please close them ASAP. Closing reduces temptation, and removes a route by which your debt situation can become a more significant problem.

    Has the loan made the balances on these cards zero?
    The balance is now zero. I work long hours but on my next day off I will ring the other credit two cards (they were balance transfer cards where the rate has ended, I never actually bought anything with them) and close them. 
    My advice at the moment is don't do anything (apart from try to keep your spending low) until we have a full picture of your financial situation. 
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • NeverendingDMP
    NeverendingDMP Posts: 2,088 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Lots of good advice so far so just popped in to say hi, welcome and yes plenty of us on the board are in debt but have still managed to keep our houses.

    Our mortgage fix ends aug 24. I'm doing similar to you and thinking eeeekk what's gonna happen this time next year. Planning ahead is always good though. Welcome and good luck!
    Jan 18 Joint debts 35,213 - March 25 13.9 k
    Mortgage Jan 18- 77224 March 25- just over 65.5k

    Debts in my name only £5213
  • fatbelly
    fatbelly Posts: 22,559 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    OP's getting lots of help on dfw now - pop over and take a look if you're interested.
  • Misslayed
    Misslayed Posts: 15,222 Senior Ambassador
    Tenth Anniversary 10,000 Posts Homepage Hero Name Dropper
    Merge requested
    I’m a Senior Forum Ambassador and I support the Forum Team on the Competition Time, Site Feedback and Marriage, Relationships and Families boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com All views are my own and not the official line of Money Saving Expert.
  • ACG
    ACG Posts: 24,403 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    There is not enough information to say for sure, but there are things you can do to try and help:
    1) You have time on your hands. So try and find places you can cut back. 
    2) Lenders from next month have to look at helping customers extend their term and go on interest only etc. I dont think the interest only thing is quite the help people think it will be, but can you look at extending the term? You may need to look at delaying your retirement age, but you can always look at bringing that down again in the future. 
    3) Mortgages rates may end up coming down from where they are now by this time next year - no guarantees but you never know. 
    4) Can you move jobs/promotions/pay rises - every little will help. 

    If all else fails, you are better selling up on your own terms rather than when it gets too late. If you get to Feb/March next year and things are still looking a bit grim, you may need to look at putting your home up for sale. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • AdmittingDefeat
    AdmittingDefeat Posts: 17 Forumite
    10 Posts First Anniversary
    [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......... 1
    Number of cars owned.................... [b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2226
    Partners monthly income after tax....... 1500
    Benefits................................ 96
    Other income............................ 0[b]
    Total monthly income.................... 3822[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 497
    Secured/HP loan repayments.............. 0
    Rent.................................... 487.24
    Management charge (leasehold property).. 0
    Council tax............................. 174
    Electricity............................. 53
    Gas..................................... 27
    Oil..................................... 0
    Water rates............................. 55
    Telephone (land line)................... 0
    Mobile phone............................ 58
    TV Licence.............................. 13.5
    Satellite/Cable TV...................... 20
    Internet Services....................... 30
    Groceries etc. ......................... 300
    Clothing................................ 20
    Petrol/diesel........................... 300
    Road tax................................ 11
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 750
    Other child related expenses............ 40
    Medical (prescriptions, dentist etc).... 19.3
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 12
    Contents insurance...................... 0
    Life assurance ......................... 37
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 12
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Breakdown cover ........................ 22.5[b]
    Total monthly expenses.................. 3033.54[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 114000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 114000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 112000...(497)......3.5[b]
    Total secured & HP debts...... 112000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Loan 1 ........................18549.....295.......9.9
    Loan 2 ........................7773......250.......8
    Car ...........................1800......100.......0[b]
    Total unsecured debts..........28122.....645.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,822
    Expenses (including HP & secured debts). 3,033.54
    Available for debt repayments........... 788.46
    Monthly UNsecured debt repayments....... 645[b]
    Amount left after debt repayments....... 143.46[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 114,000
    Total HP & Secured debt................. -112,000
    Total Unsecured debt.................... -28,122[b]
    Net Assets.............................. -26,122[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • SaverRate
    SaverRate Posts: 960 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    Mobile phone - £58 a month assuming this is for both of you? Does it include a handset? Are you still in contract? If not, switch to sim only you can easily get this down to under £10 a month on sim only depending on usage.  use https://www.moneysavingexpert.com/cheap-mobile-finder/

    Internet - are you still in contract? Whos it with? You can get this down https://www.moneysavingexpert.com/compare-broadband-deals/

    TV services - are you still in contract? Whos it with?

    FYI - We pay £44.75 a month for Virgin Media thats M250 broadband, weekend calls, MAXIT TV and sky sports

    Car Insurance - do you use a comparison site to find the best deal? (Note - doesnt mean the cheapest) If not, have a look and switch mid term if needed. Do you pay this monthly? If so, that costs you more in most cases try and switch to paying annually. 

    Buildings Insurance - Do you have contents insurance too (I hope so!)? do you use a comparison site to find the best deal? (Note - doesnt mean the cheapest) If not, have a look and switch mid term if needed. Do you pay this monthly? If so, that costs you more in most cases try and switch to paying annually. 

    Breakdown cover - £22.50 - whos this with? Have a look at start rescue. Family use them and have claimed never had an issue and alot cheaper than AA/RAC. If you go with startrescue use MSE17 as a discount code. Alternatively look at https://www.moneysavingexpert.com/insurance/breakdown-cover/


    Hope the above helps even if its a little bit! 


    FTB - April 2020 
  • MFWannabe
    MFWannabe Posts: 2,448 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    AdmittingDefeat said:
    [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......... 1
    Number of cars owned.................... [b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2226
    Partners monthly income after tax....... 1500
    Benefits................................ 96
    Other income............................ 0[b]
    Total monthly income.................... 3822[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 497
    Secured/HP loan repayments.............. 0
    Rent.................................... 487.24
    Management charge (leasehold property).. 0
    Council tax............................. 174
    Electricity............................. 53
    Gas..................................... 27
    Oil..................................... 0
    Water rates............................. 55
    Telephone (land line)................... 0
    Mobile phone............................ 58
    TV Licence.............................. 13.5
    Satellite/Cable TV...................... 20
    Internet Services....................... 30
    Groceries etc. ......................... 300
    Clothing................................ 20
    Petrol/diesel........................... 300
    Road tax................................ 11
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 750
    Other child related expenses............ 40
    Medical (prescriptions, dentist etc).... 19.3
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 12
    Contents insurance...................... 0
    Life assurance ......................... 37
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 12
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Breakdown cover ........................ 22.5[b]
    Total monthly expenses.................. 3033.54[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 114000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 114000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 112000...(497)......3.5[b]
    Total secured & HP debts...... 112000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Loan 1 ........................18549.....295.......9.9
    Loan 2 ........................7773......250.......8
    Car ...........................1800......100.......0[b]
    Total unsecured debts..........28122.....645.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,822
    Expenses (including HP & secured debts). 3,033.54
    Available for debt repayments........... 788.46
    Monthly UNsecured debt repayments....... 645[b]
    Amount left after debt repayments....... 143.46[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 114,000
    Total HP & Secured debt................. -112,000
    Total Unsecured debt.................... -28,122[b]
    Net Assets.............................. -26,122[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    Most of your soa looks fine 
    Council Tax; is this over 10 months or 12? 
    Mobile phones; are you in contracts? If not change to sim only 
    Water rates seems very high; look if it will be cheaper on a meter 
    life insurance seems high; is this for both of you? Does it include critical cover or just to pay off mortgage? 
    Breakdown cover; this is very high; I only pay £60 for the year; check comparison sites to see what you can get it for 
    car maintenance seems low 
    Birthdays/ Christmas don’t buy for family etc; they will understand; don’t buy for each other and you can easily halve this amount and more 

    Paying off debts and getting yourself in a better financial position by time mortgage renewal comes around is top priority 

    MFW 2025 #50: £711.20/£6000

    07/03/25: Mortgage: £67,000.00
    18/01/25: Mortgage: £68,500.14
    27/12/24: Mortgage: £69,278.38 

    27/12/24: Debt: £0 🥳😁
    27/12/24: Savings: £12,000

    07/03/25: Savings: £16,500

  • fatbelly
    fatbelly Posts: 22,559 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 2 July 2023 at 4:13PM
    I think you're going to be OK

    The others will make suggestions on cutting costs and, as Tesco used to say, every little helps.

    I assume the car debt is some sort of family arrangement and due to be paid off in 18 months. Personally I'd overpay to clear that by June next year, Then, even on present figures, there is room for the mortgage to rise £250. Your cost-cutting may mean there's room for a little more.

    If you're in more serious trouble at that point then the non-priority loans can go into a debt management plan, potentially releasing up to an extra 545 for the mortgage. I don't think that will be necessary and I'd expect you to pay off the loans as per contract.
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