Changing mortgage from interest only to repayment during BR?

dingdangdo_2

Hi,

We went BR last August and are still disputing SOA with OR, one thing that we have been thinking about is our mortgage as we have only been paying interest only as we were worried about what the OR might say if we put down the true repayment figure. Interest only is £700, repayment is £850. We want to amend this now but worried about the response we might get from OR as its a lot of cash each month. The house is in negative equity, so I'm not sure where we stand with the house being taken off us.

Also we had letter from OR the other day about us buying the beneficial interest from them, if we did this and then altered mortgage from interest only to repayment could we end up in trouble? Guessing we could.

Thanks

tigerfeet2006

So you are saying that you told the OR you were only paying £700 when in fact you were paying £850 :eek: Why? Did you get any professional advice before going BR? What is the OR disputing on your I&E? Would you be able to put the I&E YOU SUBMITTED TO THE or UP ON HERE PLEASE? eek sorry caps

dingdangdo_2

tigerfeet2006 wrote: »

So you are saying that you told the OR you were only paying £700 when in fact you were paying £850 :eek: Why? Did you get any professional advice before going BR? What is the OR disputing on your I&E? Would you be able to put the I&E YOU SUBMITTED TO THE or UP ON HERE PLEASE? eek sorry caps

Hi there, no we have actually been paying interest only at £700pm purely to keep costs down over the past couple of years - yeah good plan hey, what a mess we ended up in. So on our SOA we have always put £700 but now we are extremely conscious of creating problems for ourselves financially in the future by only paying interest only. So we want to pay the repayment figure but god knows how it will go down with OR. Worried they will think its way to excessive and we'll have to lose the house and rent something cheaper. Can't buy anything cheaper, its only a one bed place, just buying is expensive these days....

I'll get my SOA up for you.

tigerfeet2006

Cheers for clearing that up. Look forward to seeing your SOA. Tell us what the OR is disputing.

dingdangdo_2

COUNCIL TAX £ 90.00

WATER £ 40.00

PHONE £ 65.00

GYM £ 40.00 exercise on prescription GAS £ 44.00

ELECTRICITY £ 30.00

TV LICENCE £ 12.00

HOUSE INS £ 22.24

LIFE INS £ 65.00

CAR INS £ 27.78

PRESCRIPTIONS £ 15.00

MORTGAGE £ 701.00

OPTICAL X 2 £ 70.00

CAR INS £ 28.00

STUDENT LOAN £ 150.00 standard monthly amount PETROL £ 180.00

FOOD / HOUSEHOLD £ 399.00

HOLIDAY £ 60.00

HOUSE MAINT £ 45.00

CAR MAINT £ 100.00

CAR TAX £ 34.00

DENTIST £ 15.00

HAIRDRESSERS £ 25.00

CLOTHES £ 60.00

AA £ 6.00

DRY CLEANING £ 10.00

TOTAL £ 2,334.02

INCOME £ 2,250.00

DISPOSABLE £ 84.02-

dingdangdo_2

OR has changed their minds on the figures they will allow us about 4 times now so its all getting pretty mad. They are trying to make us get rid of one of the cars now as they don't think we need the two, I can understand that it might sound greedy but it really in't, they are both bangers (joint value of about £1500) and are both needed, unfortunately the guise they are using is that as both cars are registered in my OH's name so both cannot be exempted. Feel this is a bit harsh as that was just circumstance that he collected both cars and filled in the V5's. I have reasons for needing my car and don't know how I would cope without it, also desperately job searching (current position is awful) and without the car I am going to rule out loads of jobs I could apply for, I live in a rural area so your own transport is essential. OH needs his for commuting to work. Anyway, yes the OR is disputing the other car (although didn't 6 months ago) purely to gain cash in the budget from tax, petrol etc. Thats probably the main issue I think.

tigerfeet2006

How many is this for?

dingdangdo_2

Just the two of us

tigerfeet2006

These notes are what MY thoughts would have been if you had posted it up for us to have a look before you went BR.

dingdangdo wrote: »

COUNCIL TAX £ 90.00

WATER £ 40.00

PHONE £ 65.00 If this is landline then you would probaly have this cut to around £50. Though if you have mobiles you would need to add these seperatly.

GYM £ 40.00 exercise on prescription I assume you have a letter to back this up

GAS £ 44.00

ELECTRICITY £ 30.00

TV LICENCE £ 12.00

HOUSE INS £ 22.24

LIFE INS £ 65.00

CAR INS £ 27.78

PRESCRIPTIONS £ 15.00

MORTGAGE £ 701.00

OPTICAL X 2 £ 70.00 This is quite hefty do you have special prescriptions? Most people tend to allow £15-20 per person

CAR INS £ 28.00

STUDENT LOAN £ 150.00 standard monthly amount I assume you've reached the wage where this has to be paid back

PETROL £ 180.00

FOOD / HOUSEHOLD £ 399.00 I would have probably said £350

HOLIDAY £ 60.00 would have said £40 for this

HOUSE MAINT £ 45.00

CAR MAINT £ 100.00

CAR TAX £ 34.00

DENTIST £ 15.00

HAIRDRESSERS £ 25.00 £15 for this

CLOTHES £ 60.00 £100 for this

AA £ 6.00

DRY CLEANING £ 10.00

TOTAL £ 2,334.02

INCOME £ 2,250.00

DISPOSABLE £ 84.02-

Which by my calculations would have come to £2250.02!! You have no room in your budget for changing your mortgage. Have you written to the OR and explained why you both need cars and you want to get a job to bring more money in. Is there someone who can buy the BI of the cheapest car for you? Obviously if you had more coming in then you could look at changing your mortgage. Have you proven that you couldn't get to your current job by bus? Did he comment on the life insurance? What were the OR's comment.

Sorry to take so long to get back to you I have a fractious baby to deal with at the moment.

dingdangdo_2

Yeah, we have doctors letter to back up the gym and prescriptions for optical care which proves why the costs are high. All of this has been sent to the OR as they requested but its like they wait for evidence and then when we supply it they look for another angle to get us on. They want us to pay a £220 IPA between us and will take it to court if we don't agree. We're scared and incredibly stressed about it, the truth seems clear to us - we just cannot afford to pay it. I think OR knows this too which is why they are trying to get rid of one car - to free up some cash on the SOA. Its annoyed us that the only reason they give us for not exempting the other car is that they are both registered to OH. Its like no common sense can be applied, its obvious we have one car each. I don't suppose we are allowed to just transfer it to me now are we?

tigerfeet2006

Have a read ofthis thread and the information given about cars

http://forums.moneysavingexpert.com/showthread.html?t=766037