Is My Situation Completely Hopeless?

cheexy

Grumpelstiltskin said:

If you stay with the same mortgage company you won't have a problem.

This is reassuring. Thank you 

cheexy

2021rdsunshine said:

Just wondering if you could benefit from help with your mortgage either through your mortgage provider or the link that was previously provided  https://www.gov.uk/support-for-mortgage-interest . This would give you a huge help to be able to free some of your income towards your living expenses until the time comes when you can look for a job once your little one is a bit older. In any case your priority is keeping a roof over yours and your child head and  be able to service your living expenses. Glad you are having some help from family and friends. 

As for the unsecured debt remember we are all just a reference number for the creditors. Circumstances in your life happened that lead you not being able to pay them back. It happened to me and to lots of people here. Keep strong, you will find a way forward! 

Thank you so much for your kind words. I will explore the support for mortgage interest again. I remember receiving the notification about it from Universal Credit but I think I was a bit turned off by something I read about the government becoming a co-owner of the property or something like that. I will check again.

PurpleMouse5

Just to note that a DRO won't be an available option as you own a house. A DRO is basically a low-income, low-asset form of bankruptcy. Bankruptcy is an available option, but it might not be the right one as you would probably lose the house and possibly the car. If you're thinking of going down that route it's really important to get professional advice from one of the debt charities. 

stu12345_2

could you sell the house and rent until you got back on your feet as long as it takes, even if it's a few years, cos your cash poor , asset rich , cos you have a lot of equity in the house
cos I see no other way out, you can't afford even priority bills at the moment.

this situation would be easier to resolve if your question  came from  someone that. rented eg from council but when you have a mortgage eg an asset, it becomes more complicated.

this whole thing is taking me back to why the right to buy, (even though your not one of those.)
when Thatcher brought it out she knew once you have a mortgage you can't ever let yourself be jobless or only work part-time or be sacked or strike.
cos those that rented from council were always ok, always protected, they would never go homeless.

that's why owning a home is a serious thing when you have big debt. and a mortgage.

I see a bank allowing 3 months worth of missed mortgage payments before they come more serious. you don't want the bankruptcy route as your home will be sold at auction for well below what's it's worth.

you want to sell it yourself for a good price , but not a silly high or low, one that gets a sale quicker.

I know my  solution may sound harsh, but your equity may be your get out of debt card, and clear your debts and then go back as an employee full-time on a steady wage , not a business owner 

I guess the old golden rule of have 6 months worth of money in bank to tide you over if you lose your job when you have a mortgage runs true.
I assume you didn't have mortgage insurance against losing your job which pays your mortgage for 6 months or a year.

the national debtline may be your next step, see what they advise.

they would first say maximize your wages or benefits, whilst stopping or reducing your credit card debts.

but your benefits are too low to exist on. so I guess it's get max wages from a job or release, sell the equity in your home or both IMO 

enthusiasticsaver

Your mortgage provider have a duty to help you. Speak to them before doing something drastic like selling. 

mumtoomany

Hi, @cheexy. Just replying to say I feel for you. I've been in the position of having more going out than coming in, on more than one occasion. I'll try to offer some advice.

Looking at your SOA, I can see the following possible cuts.
Mobile phone, is this in contract or pay as you go? Pay as you go can be had for only around £6 a month. If in contract, can you default on that too and not pay?

Internet, have you looked at the social tariffs available for those on low incomes and claiming UC, or similar.

Water, is there a social tariff available for this too? Or Could you ask for a meter to be fitted, maybe save money as there is only you and the baby?

What are the other child related costs? Could they be cut in any way? Same with entertainment.

Clothes, can you manage with what you have for now. Ask around amongst friends for clothes for the little one. Second hand is fine, he/she will not know or remember. My younger son doesn't remember wearing his sister's pink tights and my little pony pyjamas.

Electric, and I'm guessing gas is included. I'm sure there is a little to be saved here. Turn things off, heat fewer rooms, batch cook, put on more clothes, etc.

Groceries. I know most people will say £150 is very little, but it could be less. Have you a community pantry or similar nearby? Pay a few pounds for a lot of leftover food. Can you walk to the shops at yellow sticker time? Olio? Togoodtogo?

As others have said, take to your mortgage provider, about help.

Could you take in a lodger? I believe you can get several thousand pounds a year without it affecting your tax, £7500 rings a bell, but I may be wrong.

Is there any work you can do from home, while baby is there. Even simple things like surveys, prolific academic is supposed to be the best. Bank switching. 

Have you got a garden? Get out and plant things now ready for the good weather. Don't buy any seeds! Potatoes will grow from left over supermarket ones. Tomatoes and peppers will grow from seeds in shop bought fruits.

Looking at old posts of yours, I can see that you have determination and work hard. I'm sure you can get through this without having to sell the house.

I hope at least some of this is useful, hugs, mumtoomany.xxx

stu12345_2

i don't believe the solution is penny pinching here and there
the main thing is how fast can you return to full-time work in a decent paying job.
 you are actually not in a desperate situation as many folk have no assets whatsoever and are skint 
you have a 6 figure sum tied up 
you must decide at what point you are going to access that sum and by what method.imo.

getting back to work may avoid you having to touch it.

cheexy

mumtoomany said:

Hi, @cheexy. Just replying to say I feel for you. I've been in the position of having more going out than coming in, on more than one occasion. I'll try to offer some advice.

Looking at your SOA, I can see the following possible cuts.
Mobile phone, is this in contract or pay as you go? Pay as you go can be had for only around £6 a month. If in contract, can you default on that too and not pay?

Internet, have you looked at the social tariffs available for those on low incomes and claiming UC, or similar.

Water, is there a social tariff available for this too? Or Could you ask for a meter to be fitted, maybe save money as there is only you and the baby?

What are the other child related costs? Could they be cut in any way? Same with entertainment.

Clothes, can you manage with what you have for now. Ask around amongst friends for clothes for the little one. Second hand is fine, he/she will not know or remember. My younger son doesn't remember wearing his sister's pink tights and my little pony pyjamas.

Electric, and I'm guessing gas is included. I'm sure there is a little to be saved here. Turn things off, heat fewer rooms, batch cook, put on more clothes, etc.

Groceries. I know most people will say £150 is very little, but it could be less. Have you a community pantry or similar nearby? Pay a few pounds for a lot of leftover food. Can you walk to the shops at yellow sticker time? Olio? Togoodtogo?

As others have said, take to your mortgage provider, about help.

Could you take in a lodger? I believe you can get several thousand pounds a year without it affecting your tax, £7500 rings a bell, but I may be wrong.

Is there any work you can do from home, while baby is there. Even simple things like surveys, prolific academic is supposed to be the best. Bank switching. 

Have you got a garden? Get out and plant things now ready for the good weather. Don't buy any seeds! Potatoes will grow from left over supermarket ones. Tomatoes and peppers will grow from seeds in shop bought fruits.

Looking at old posts of yours, I can see that you have determination and work hard. I'm sure you can get through this without having to sell the house.

I hope at least some of this is useful, hugs, mumtoomany.xxx

Thank you for your reply, it is very useful. I must say, the pink tights made me chuckle.

I don't consume much from supermarket shopping and in reality, the number should be more around the £80 mark per month. I just put the upper limit. 

Regarding the lodger, I am a bit skeptical of the impact on my council tax and overall utility bill plus having an unknown person with baby and I may not be the wisest for now. 

Utility bills includes heating and I am turning things off more but it is on Direct Debit. I believe I will get a refund if I end up paying too much.

I already plant vegetables in my garden. I already have potatoes, garlic and onions growing. Tomatoes, peppers and others are in the works as well. I also started composting and  actually started a YouTube account documenting my journey but I slowed down a little (on the documenting part) in the past 2 months due to stress. Gardening really helps me mentally. I only have about 37 subscribers so I don't think monetising will happen soon on the account. I will begin uploading again. 

I will explore the surveys. I am very open to working from home around baby. I just don't know which sites to look for. If I could get more pointers, that would be really useful. I will check out prolific academic right away.

Thanks again.

cheexy

enthusiasticsaver said:

Your mortgage provider have a duty to help you. Speak to them before doing something drastic like selling. 

Oh I am absolutely not selling the house. It is not even a thought I am ever going to entertain. That's the only thing I have to show for almost 10 years of running a business and working all those crazy hours.

enthusiasticsaver

Your mortgage is on a great rate. Ask the mortgage provider to switch you to interest only until you return to work. That should bring your mortgage down to under £170 a month.