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

inneeedofhelpdude

misspoppy wrote: »

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?

The car is essential for my work, i dont actually own the car. Again, it is a family members who i just use to keep me in work.

As for the gym, i know it should go, however, it is my only luxury these ddays. I dont drink at all and i spend my friday and Saturday nights in the gym while my mates are down the pub or out enjoying themselves. So it helps me stay sane and not be too manic depressive. If it came to it i fully appreciate this would need to be cancelled. However, i would like it to be the last thing to go.

Unfortunately i have no assets what so ever, the bulk of the debts came from a breakdown of a relationship. We both got into financial problems, she left me with all the debts that she accumulated. I have commenced legal proceedings against her and i am looking for the return of £17.5k but realistically i know this is not going to happen. It is her debt but as we all know solicitors are the only beneficiaries of litigation. I am going to have to try and claw back as much as possible but i am prob looking at £8k back at the most.

inneeedofhelpdude

Instead of waiting for her to pay the money back i want to get on top of the situation now. Any money from Court proceedings would then be a bonus.

debrag

don't worry about my frecking out about loan repayments I've realised its 9% of your over all wages lol

inneeedofhelpdude

debrag wrote: »

don't worry about my frecking out about loan repayments I've realised its 9% of your over all wages lol

I am not too worried about the student Loan as its a % of your wages. The one that does worry me is the Credit Card which is on 0% at the moment. In a few months i am going to have to change it again. I dont know if i will manage to get another on 0% and this is going to start causing problems. Any ideas??

mummytofour

Tricky I would not even think about buying ur own place right now. Renting is a far better option as you may change your job once u qualify then want to move, thats easier when renting.
Have u spoken with your loan providers and asked if you can have reduced payments until u qualify?

MissKJ

I think you should sit tight. Your situation can only improve. If you budget, work, and pay off as much as you possible can, and keep your family informed about what you are doing, their support will continue. As your situation improves, so will your determination to sort this out. Could you go on some sort of working holiday this year to get you away, have something to look forward to and a bit of extra cash?

I agree about the gym membership, it is only a waste of cash if you don't use it. If it occupies you and gets you out of the house, it is money well spent.

By the way, even though you owe a lot, you may still have a decent credit score so long as you don't miss payments. Why don't you send for a free credit report, that wil answer your questions about the new credit card on 0%. Could be the answer you need right now?

debrag

inneeedofhelpdude wrote: »

I am not too worried about the student Loan as its a % of your wages. The one that does worry me is the Credit Card which is on 0% at the moment. In a few months i am going to have to change it again. I dont know if i will manage to get another on 0% and this is going to start causing problems. Any ideas??

It's more about me, at first worrying about how much I owe than anything lol

inneeedofhelpdude

mummytofour wrote: »

Tricky I would not even think about buying ur own place right now. Renting is a far better option as you may change your job once u qualify then want to move, thats easier when renting.
Have u spoken with your loan providers and asked if you can have reduced payments until u qualify?

I have not considered dropping my payment amounts just yet. I can just manage it each month with a huge struggle, I still have a home and somewhere to live for now. I am anticipating my future needs.

Renting would be a much better choice, i can house share. the only reason i mentioned the 110% mortgages was so that i could consolidate some debt and then i have somewhere to live while paying off money each month.

If it had to move out, then i would speak to my lenders.

inneeedofhelpdude

Does anyone have experience or knowledge of the 110% mortgages? I have been advised this would help consolidate some debt and provide me with housing, but i am not going to do it just yet. I wondered if anyone had any ideas about these products????

silvercar

More advice on the mortgage board probably.

The problem with 110% mortgage is that you are tied to the lender when your deal ends and the mortgage needs to be renewed. Say you got a good deal last year, Northern Rock were offereing 5% I think on 110% mortgage. So the deal runs out and northern rock transfers you to their SVR of 7.25%. Your payments on a 100k property, 110k mortgage go up from £458 to £665 a month. So you look to move mortgages, but no-one will offer you a good deal at over 100% so your stuck. If you transfer the mortgage and keep the secured loan (they are structured as a 100% mortgage plus a 10% secured loan) NR will increase your rate on the loan to 15%, so you can't do that.
In a rising market you can get away with it because a 110% loan becomes a 100% loan if house prices increase by 5% for each of 2 years. In the current market you can't do it.

The other problem is that you pay for the loan over the long term more than 3 times its value so its not the way forward.

This 110% loan is not the way forward, you are borrowing more money to move debt around.

Your situation is not terrible. You are living at home to make in roads into your student debt, this is very common. Once your salary increase you can make inroads into the debt and move on. Buying a home, taking on more commitments is not the way to do it.