Debt consolidation - remortgage advice?

stressedette

@enthusiasticsaver - that’s actually an error in my SoA, I’m not paying rent as well as mortgage! I’ve put mortgage into the rent section again accidentally, so painting a worse picture than reality. 

When the loans finish in January yes, things will be much easier. But will take me back to essentially break even on a frugal SoA for what’s likely to be another decade, at least until April when my mortgage goes up. 

Would be interested to understand why you think £500 is not half of things - I counted it up for a previous poster and half household bills were £402, though I did forget to include additional child costs which would make it £452. I pay for household groceries which is additional, but he also pays for car, tax, insurance, and petrol separately, so I think that evens out. We each pay £250 in nursery costs. He is the children’s father so I don’t get additional maintenance, though he knows the situation and does contribute more month to month as able - this month for example he paid all nursery costs. 

I’m not concerned about my actual affordability of the mortgage if I can sort out the cc’s - the mortgage is currently £340, and will likely double, but I’ve been paying £695 per month in loans for the past 7 years on top of the mortgage, along with the CC payments. Current monthly repayments are my mortgage (£340) plus £1300. Appreciate a ‘further advance’ might be unachievable though. 

I’m really looking for options here - and I do appreciate the advice, but plodding on in the slog isn’t manageable any longer for me mentally. I know my equity may be irrelevant on affordability calculations, but it isn’t irrelevant to me - as I know I could sell my house and start over, which is becoming a real option. 

I just don’t want to put my kids through the upheaval of two individual moves if I can help it. 

stressedette

Also you’re correct - I work full time plus overtime as is, so couldn’t take on anything additional. I did work a second job before my kids to service current debts but it’s not feasible now.  

enthusiasticsaver

If you don’t pay rent as well as mortgage then yes your partners contribution looks more fair. 

enthusiasticsaver

The equity isn’t irrelevant if you sell. I am saying it is irrelevant when it comes to further borrowing. 

stressedette

enthusiasticsaver said:

The equity isn’t irrelevant if you sell. I am saying it is irrelevant when it comes to further borrowing. 

Thanks - yeah I did understand this. Appreciate it may prevent a ‘further advance’ application being successful. 

stressedette

I suppose my understanding of a ‘further advance’ (albeit limited, which was the initial reason for my post) was that it’s essentially a separate account and separate loan (albeit still secured) - so that amount could be fixed rate for example over 10 years or whatever term needed. 

I’m not sure if I did this if I then tried to move house, whether this would have serious implications - would I need to also remortgage the advance, or would it restrict to this provider - assume it would be listed as a charge, etc. 

I know my debts are higher than they should be, from being stupid and naive many moons ago. I’ve had a long time of trying to live with that and pay everything down properly, which I have been doing - but at the interest rates I have I’m struggling to make a dent and just managing to service interest. I also know the go to advice is not to refinance, and not to convert unsecured debt to secured. But as an option of last resort - which this is - I’d like to understand the consequences. 

I think some separate financial advice is possibly the way forward. 

Grumpelstiltskin

Who do you think  you are going to get financial advice from?

What ever you do do not pay anyone for advice.

Also be wary of advice from someone who deep down wants to sell you a financial product.

stressedette

@Grumpelstiltskin Honestly, I don't know! That's why I'd thought of coming on here for advice. 

But so far this been to keep going the way I'm going and take another 20 years to pay all this off, which makes me genuinely want to throw myself off a bridge - or enter into a DMP which would likely cost my my job / career, which don't think would leave me much better off. 

Trying to refinance to consolidate (and especially with secured debt / a mortgage) is generally a bad idea, I do get that. And I know many people end up worse off through lack of understanding of budgeting / no changed behaviours.

But I'm not sure I have any other options, so I'd originally come on here to see if anyone had done similar or if there were any specific ways of doing this to avoid (is it better to further advance with the same provider, or remortgage to a different provider in one product / account, for example). Should I be making sure any further advance I was offered has early repayment options so that I can overpay quicker. Should I look at a Decision in Principle in the first instance to see if I'd even be offered one! 

If we were to move house, partner would likely join the mortgage and we'd apply joint. So this would help affordability. Not sure if there are options where we can move and use some of the equity to pay off debt without ending up homeless in between. 

Grumpelstiltskin

You say you have a senior position in your field, but your gross salary £30000 plus? doesn't seem that much for your professional body to impose such stringent conditions.

OK I can understand not bankruptcy or IVA but no voluntary debt arrangement?

I'm sure you are not the only member of that professional body to be in debt, what are they doing I wonder?

peb

If you go down the sale / purchase route then you simply pay off the debts on the day of completion, indeed the lender for the new mortgage will possibly require it.  I don't understand why you think you need to rent it be homeless in-between?

I'm not advocating it as I read it that you'll be buying a more expensive house and more debt by way of mortgage but you have to work out what's best for you.

The loans that run to January will likely have been finished by that point.