IVA or 110% mortgages????????

inneeedofhelpdude

Hi, This is my first post so please be gentle if there are any mistakes!

I am a trainee solicitor of 26 years of age. I am due to qualify in a few months and am preying that my salary will increase by a bit.

Current debts:-
Student Loan (govt) - 17,000 Roughtly £20 per month differs!
Barclays Pro development Loan - 27,000 £345 per month
Nationwide - 17,500 £278.00 per month
Credit Card - 3050 min payment each month 0% apr

My salary is £15k per annum and i live at home still due to debts. This is every bit of debt I have. Each month i manage to keep £5-10 in credit in my account. With the aid of family i am just keeping my head above water but every month i am worried in case a bill comes in and i cant afford it.....i need to move out as my family no longer has room for me and i am sleeping on the sofa each night!

Is an IVA the way forward for me? I have tried the free debt advice and explained my situation. They are getting back to me and said they would help so i am getting assistance i just thought i would add this in the mean time. Should i consider the IVA (which may affect my job) or do i wait and see what my qualifying salary will be and then attempt to consolidate some of this debt into a 110% mortgage?? Any advice or pointers would be hugely appreciated!!!

poppy10_2

inneeedofhelpdude wrote: »

do i wait and see what my qualifying salary will be and then attempt to consolidate some of this debt into a 110% mortgage??

I thought you were living at your parents house? You can't get a mortgage if you don't have a house

CLAPTON

You need to draw up a SOA (see sticky for first time posters) of your current situation

and draw up a second one showing what you situation would be if you moved out.

At the moment you seem to be paying at least 700 per month in debt repayments so frankly unless your income goes up a lot I dont see how you can possiblily afford to move out.

But draw up those two budgets.

Also you need to establish if doing an IVA would affect your job (I'm not saying an IVA is right for you anyway until you post up the SOAs).

While waiting to qualify can you get a parttime job to ease the financial pressure?

silvercar

I thought he meant buy a house, get a mortgage of 110% so that 100% buys the house and the extra 10% can be used to reduce the interest rate on some of the loans.

Don't think much of the idea though. Now is not the time to be buying houses.

Bismarck

Hi,

Well done for posting. Can you give us an idea of your likely salary will be where you live when qualified as this will make a huge difference to your options - my instinctive reaction is to keep away from anything like an IVA if at all possible for your career prospects...but you know that already....

inneeedofhelpdude

Hi,
With the mortgage i meant to use the extra 10% to pay off debts.......so hopefully drastically reducing my debts but at least giving me somewhere to live.

My expected salary on qualifying will be £30k per annum. I live in the South east area.

I am trying to get part time work but his has to be approved by my training contract provider before i start, hence bar work or anything customer facing they are not willing to let me do. An IVA can effect my career as i alreday know, which is why it would be a last resort. I am lucky to have a family helping me all they can with food etc and living day to day.

thank you for all the input i will post a SOA as soon as possible.

debrag

do a full SOA.

Your student load comes out before you see your wages each money, so is that £20 on top?

inneeedofhelpdude

Below is a rough template;

Monthly Incomings:

My salary - £1,014.00

Total - £1,014.00

Monthly Outgoings:

Mortgage/Rent - £0.00 (family helping)
Council Tax - £0.00
Gas - £0.00
Electric - £0.00
TV License - £0.00
Sky £0.00
Phone - £35
Food - £100
Car Insurance - £42.00
Petrol - £70
Gym Membership - £28

Total: £275.00

Student Loan (govt) - 17,000 Roughtly £20 per month differs! (come out before end total) so i get £1014.00 would be 1034.00
Barclays Pro development Loan - 27,000 £345 per month 5.9%APR to follow
Nationwide - 17,500 £278.00 per month 7.4%APR
Credit Card - 3050 min payment each month 0% apr

At the end of each month i have around £100 spare, i try and give some to my family as they help with food, clothing and accomodate me. I am not overdrawn in my bank and so as you can see i am just about making it work with a struggle. as you can see this is not long term sustainable, i will need to find accomodation. I know its a massive amount of debt, but i feel i am doing ok to control is so far!!

Total income £1014.00
Outgoings £903 Approx

As you can see, any bills that come along unexpected, car tax, MOT are being paid by other people. I give everything i can to my family as they are literally still supporting me. I dont want an IVA but was wondering if its possible to approach my creditors and ask for assistance another way....any advice is vastly apprecaited. I am truly sorry for mistakes and posting without SOA to start with. I am new to this and i am learning.

debrag

inneeedofhelpdude wrote: »

Student Loan (govt) - 17,000 Roughtly £20 per month differs! (come out before end total) so i get £1014.00 would be 1034.00

Is that the min? my loan is nowhere near 17K but I pay £36 a month

can't you get a DMP with payplan or CCCS?

misspoppy

Hi

Its really tough right now but the end is in sight. Its just a few more months. In the mean time you can't really afford the gym and the car is costing you £112 p/m plus mot and tax, can you take the car off the road or sell it until you qualify which will really help with your situation you might then be able to house share closer to your work which solves the housing problem.

You've had a lot of money from loans in the past have you got anything you can sell?

inneeedofhelpdude

debrag wrote: »

Is that the min? my loan is nowhere near 17K but I pay £36 a month

can't you get a DMP with payplan or CCCS?

That is the min i pay every month, sometimes it can be slightly more. I do Police station work so sometimes i may get an extra £50-100 per month. Even then my student loan deduction has only ever been as high as £40.

As for DMP, payplan or CCCS i am looking into it all, this is my first steps towards finding advice, i have contacted local agencies who have stated they will call back and at the moment i have just tried to budget to keep myself going. Now is when i am actively looking to help my situation rather than just getting depressed and worrying! Thank you everyonee for taking the time to read and help.