Nothing left to pay creditors

PM22

I only have one son and he pays £220 per month rent and gets his food included 

Sncjw

You say you have equity where is that if your ex threw you out the flat. Has he sold it and gave you the money? 

If not how have you got 155 equity. If you bought the flat for 130k why have you got a mortgage you could have bought it outright and use the res to pay off debts. 

sourcrates

Rent payments in some places are astronomical nowadays, I guess the mortgage was the cheaper option, but it comes at a high cost.

Look, I`m not bothered about your unsecured lenders, they play the game as everyone else does, lending money they don`t have, that doesn't concern me at all.

We do what we have to do to survive, so you can write and tell them you are having affordability issues, and deal with the consequences if or when they happen, I can`t see a lot happening to be fair, most lenders tend to err on the side of debtors with affordability problems these days.

Floss

PM22 said:

I only have one son and he pays £220 per month rent and gets his food included 

Is he also paying the extra 25% council tax it costs to have him live with you?

TheAble

Sncjw said:

You say you have equity where is that if your ex threw you out the flat. Has he sold it and gave you the money? 

If not how have you got 155 equity. If you bought the flat for 130k why have you got a mortgage you could have bought it outright and use the res to pay off debts. 

285 of which 155 equity

PM22

Where could you buy a flat for 130k in the south east?

PM22

I haven't bought it yet but here's my budget




Sale of ex-husband owned flat 240,000
capital gains tax                          10,000
Estate agent                                  3,000
Legal fees                                      6,000
Removal                                        1,000
morgage including early redemption 65,000

that leaves 155,000

new purchase price 280,000

mortgage approved 133,500



so that leaves 8.5k and I owe 7.5k so if all goes to plan I could negotiate full and final settlements with the creditors

swingaloo

PM22 said:

The service charge is £150 a month and the mortgage is £933. 

I work in the private sector and the pay rise is guaranteed. It's only 5% though so I will be paying roughly £111 to my debts.

Earlier you said the fees were £150 not the service charge. Is there a service charge as well?

PM22

I meant the service charge when I said the fees 

Floss

PM22 said:

The service charge is £150 a month and the mortgage is £933. 

Factor in an annual increase of this too - minimum 10%.