confused and desperate!!

tadpole13

Hello all,

have got in a complete mess and could do with some advice.

last year i was on maternity leave and my partner was made redundant, we took out a loan for him to retrain and pay off overdraft for £12k we also built up cc debts of £10 and I have a car finance of £8 a horrific £30k in total.

We have a mortage with a fixed rate ending next month.
ouroutgoings are more than our income duemostly to partner not getting paid as wellandtaking time off for traing and exams.

i don't know if we would get extra borrowing or a new mortgage on our home given these debts and state of bank statments (over on overdraft etc)

Is a secured loan the best bet until we can safely apply for a new mortgage?
How would an IVA efffect our mortgage?



Next month we will most likely be in arrears !!! soon as we are paid so am panicking slightly!!

Any help or advice would be great, our main prioirity is to protect our home, and not have to move.

I know there is no easy answer but what do you think would be the least awful way forward?

Thanks
S

mummytofour

DO NOT BORROW ANY MORE AND MOST OF ALL DO NOT SECURE ANY DEBTS TO YOUR HOME!


The first thing I would suggest is you call your current lender and see if they can offer u a better rate than the standard variable rate ( thats if you are not thinking of money soon, as that would leave you with tie ins) You may find it hard to get a morgage with another lender, but I have no idea I dont know your situation but new lenders will need to credit check and look at how much you have outstanding. The current lender will prob just charge you a fee to lock you in at a lower rate for a few yrs, but will probably not credit check u etc.
Also contact CCCS and get some advice, see what they have to say but as you say sort the mortgage out first. I guess if you like us our mortgage is going up next month and that couple with MBNA high new interest rates have lead us down the DMP route.

tadpole13

our lender doesn;t have a lower rate and won't transfer us until may at the earliest anyway.
At present our outgoings before food etc exceed our income so need to do something asap, i know a secured loan is dangerous but would reduce or outgoings by 500 a month and we would be clear in 5 years. As it is we are likely to default on or mortgage in the nest couple of months as it is.
i sm not sure we have any other options as an iva would do more harm in the long run

MoneyGypsy

Tadpole13,

can you post a full SOA so that we can see where you might be able to make changes?

tadpole13

sorry what is an soa?

MissEyre

Hi tadpole, welcome!
You are in the right place to get this sorted out :T

Could you post your statement of affairs (SOA) in full, and you will gets lots more advice-you don't need to rush into anything, and you should avoid securing any loans against your home-it's very rarely the best and chespest option.

If you look at the sticky for newbies at the top of the DFW page, Southern Scouser sets out how to do your SOA-this is the first step to working out what you need to next.

Don't panic!

MoneyGypsy

Yes sorry - should have said - thanks MissEyre!

GeorgeUK

We need to see where we can save you money so a SOA would be useful

http://forums.moneysavingexpert.com/showthread.html?t=107280
This is the link that shows an example SOA.

tadpole13

Ok here goes


My salary - £1,300
Partners salary - £1400 (variable)
Benefits - £60

Total - £2,760

Monthly Outgoings:

Mortgage/Rent - £700
Council Tax - £100
Childcare £350
Gas - £25
Electric - £40
TV License - £12
Sky £23
Phones - £65
Food - £500
Car Insurance - £25
Petrol - £120
Life Insurances £120
Buildings/Conentents £45
Loan £250
Car £250
CC payments £400
Misc £100

Total: £3125

Debts
£12k Loan (HSBC)
CCs £10 (John Lewis, HSBC & Natwest all maxed!!)
Car £8k (RFS)
Overdraft £600

As it stands we are over our overdraft already so have the £60 cash in our pockets to last the month.

tadpole13

should also say have cancellele pur weding for this december and am meeting our FA next week to ty and reduce other costs

Alisonbel

I'm sorry I'm no expert otherwise I wouldn't be in the mess I'm in but your food bill is really high! Phone CCCS they will help you get your life back on track, they were fab with us.