Is remortgaging the right way forward?

Gareth78

Hi, advice from those in the know would be greatly apprecited!

We have £115,900 left to pay on our mortgage over 30.5 more years. The property is currently worth approximately £155,000.

There is also a 5k further advance on the property.

With a baby on the way and £30,000 worth of debt (including a CCJ of 5k and numerous default notices), is it worth remortgaging to pay off these debts? Will the equity in the property be enough to pay it all? Will the CCJ count against us if this is one of the ones we want to pay off?

We have never been behind with the mortgage payments but have with the further advance, although never nore than £116 ~ 3 payments.

We earn plenty (68k between us) but because of arrears etc can never seem to get back on an even keel.

Any advice would be greatly appreciated.

Thank you,

G and H

seraphina

Remortgaging in your circumstances sounds like a very bad idea. You'd be turning unsecured debt (I'm assuming your debts are unsecured) into debts that are secured on your property. Statistics show that by consolidating in this way, you'll probably just postpone the inevitable and be in a worse situation a few years' down the line. I'm not a mortgage broker but I should imagine in the current climate with a CCJ you will not get a good deal at all.

You're earning good money between you - why don't you pop over to the Debt Free Wannabe boards for advice on how best to manage your debts?

Congratulations on the baby!

brightbuy

Totally agree with Benjam, your situation is not the best right now and you would be better off holding on or you may find yourself remortgaging and struggling further. Especially with a baby on the way! Congrats!

Lipstick_2

Gareth78 wrote: »

Hi, advice from those in the know would be greatly apprecited!

We have £115,900 left to pay on our mortgage over 30.5 more years. The property is currently worth approximately £155,000.

There is also a 5k further advance on the property.

With a baby on the way and £30,000 worth of debt (including a CCJ of 5k and numerous default notices), is it worth remortgaging to pay off these debts? Will the equity in the property be enough to pay it all? Will the CCJ count against us if this is one of the ones we want to pay off?

We have never been behind with the mortgage payments but have with the further advance, although never nore than £116 ~ 3 payments.

We earn plenty (68k between us) but because of arrears etc can never seem to get back on an even keel.

Any advice would be greatly appreciated.

Thank you,

G and H

Remortgages over 85% loan to value are today none existent.

Speak to your bank about the possibility of taking out a personal loan to pay off your expensive credit cards, etc.

Gareth78

Thank you all for your answers. :T

I suppose i'll just have to be brave and ride it out. You're right - taking on more debt is definately not the way forward.... I suppose I just needed some sensible people to spell it out for me!

Selling up and renting is not an option - we bought in the first place because it got to a point where a mortgage was cheaper then renting. Living in Bournemouth has its plus points, but renting or buying property is definately not one of them!

We were paying £700 a month 4.5 years ago in rent for a large 2 bedroom town centre apartment and now pay £655 a month on a mortgage for a large two bedroom town centre apartment!

Appreciate the comments though - you've all been a great help and opened my eyes to what i should have been seeing all along.

poppy10_2

Gareth78 wrote: »

We were paying £700 a month 4.5 years ago in rent for a large 2 bedroom town centre apartment and now pay £655 a month on a mortgage for a large two bedroom town centre apartment!

Plenty of nice 2-bed apartments in Bournmouth for less than £500 a month on Rightmove

MissKJ

Gareth, definitely get over to the DFW board. You need to wake up and have your "lightbulb" moment with regards to your spending habits and money management or your problems with money will never be solved. Right now you don't manage your money well enough to risk adding your debts to your mortgage and hence securing it against your property. Long term you will end up ying massively more interest unless you followed it up with a dynamic mortgage free plan. That said, if you can start to budget better, it could be a future option later in the year. Good luck. Hope to see you on the DFW board.