ANY help would be gratefully received. Desperate times

TheAble

Basically the one item on this list that is killing you is your mortgage. The fact you are paying £870 a month is really what has got you into these problems.

I sympathise with your situation here - you don't want to sell, but more importantly you cannot redeem the mortgage until 2012 without paying a hefty penalty.

Now, moving to interest only will usually not involve redeeming the mortgage. You pay the same rate, for the same period of time, you just don't pay off any capital. Yet another option is to extend the period over which you repay. Check with your lender to find out if they will do this for you and what the fees will be (if any). If they won't do it, you really must talk to them and explain your situation - lenders will usually be helpful and come to some arrangement with you.

There's plenty to be cut down on in the other items but lots of good advice has been given there so I don't really have any more to add. Good luck with everything.

ceridwen

Seconding the suggestion re asking about extending the life of the mortgage. I am presuming you are currently on the standard 25 year mortgage term. I believe one can extend a mortgage term up to 35 years (could be even longer for all I know). I would imagine your lender would rather you did that than move lender - that way they continue to make money from you (ie interest payments on your mortgage). I would say it is in their interest (as well as yours) for them to extend that mortgage.

Also - second the thought of lodger. How big exactly is your house - I noted what you say about small rooms - but I think it would help if you listed what rooms you have besides the kitchen and bathroom/s. I would, in your circumstances, be doing that and thinking:

Right - one bedsit for me, one bedsit for my son, one bedsit for the lodger. In other words - even if your house only has 3 rooms besides kitchen and bathroom/s - that makes it possible in theory.

I dont know the layout of your house - whether access to kitchen has to be through sitting room - ie sitting room couldnt be a bedsit. But I think you might well be able to make room for a lodger if you think a bit laterally so to say and decide you can do without a sitting room or study or whatever for the time being (after all it wont be forever that you have to "squeeze up"). Have you got a garage/conservatory/one of those large luxury-type garden rooms (aka posh sheds) - that would help out on the space front too.

chimp_choker

bump, doing the bump

RAS

Julie

What is the value of your house?

EmehEm2005

I have read all the previous posts and cannot find any reference to the Citizens Advice Bureau. Have you tried them yet? Link:
http://www.citizensadvice.org.uk/

Quote from website: http://www.citizensadvice.org.uk/index/getadvice.htm

"Citizens Advice Bureaux provide free, confidential and independent advice from over 3,000 locations including in bureaux, GP surgeries, hospitals, colleges, prisons and courts.
Advice is available face-to-face and by telephone. Most bureaux offer home visits and some also provide email advice.
Our advice helps people resolve their debt, benefits, housing, legal, discrimination, employment, immigration, consumer and other problems and is available to everyone regardless of race, gender, sexuality, age, nationality, disability or religion.
Please go to our public information website https://www.adviceguide.org.uk or Find your local CAB if you need advice. We are unable to answer advice related queries from this website."

Mike

sleepless_saver

jue3107 wrote: »

Mine were all Standard Life policies too - one or two of them sold through the Halifax when we took out our mortgage.

I'll definitely look into it - I thought it was a lot more complicated than that.

If I am successfull I would have to give my ex half but it would still make a big dent in my credit card bills.

Jue x

Just to encourage you, I claimed successfully on a Standard Life policy sold through Halifax and taken out in early 1990s. I did have to provide some info, but it was pretty painless - a couple of hours work got me £5k compensation. There will be advice and templates around to help you (I think I got mine on the Which website). Good luck.

tallyhoh

when you remortgaged did you pay a redemption fee on the 1st mortgage? I did & found that they had overcharged me. They stated £75 on the initial mortgage & then charged me £300:eek: . If it wasn't for looking on this site I would not have checked. They repaid me without a word after I wrote to them (theres a template letter on here).

I had remortgaged previously as well but didnt have any paperwork. I just wrote to them guessing that they had over charged as well & they admitted it & sent me a cheque.:rolleyes:

Worth a try.

r.mac_2

jue3107 wrote: »

The problem with changing the mortgage onto interest only is that I'm tied in until 2012 on a reduced rate and there is quite a high redemption if I change. So I'm jiggered all ways on that one.

Just ot say check this with your bank. I was on repayment mortgage a few years ago when I had to switch to interest onle. I was also on a fixed deal and they switched me over, then back again 9 months later and I didn't incurr any redemption penalties as it wasn't a new product or anything. Can't remember if i had to apy a feee, but if i did it was very small sub £100. The worst thing they can say is no - always worth asking?

optimisticbutstruggling

jue3107 wrote: »

Hi Merlot

My son is 14 nearly 15. His Dad pays maintenance for him every month but obviously that isn't going to go on for ever, likewise tax credits and child benefit.

The house is probably worth about £190k and the total mortgage now is £152k. I could sell, get £35k after fees and pay off some of what I owe and then try to get somewhere smaller, but I'm desperately trying to avoid that at the moment as there aren't any properties in the area we live that are in that price bracket and if we move my son would have to move school and lose touch with all his friends. After going through the trauma of his parents divorcing, I really don't want to isolate him at this important time of his life.

I don't think that renting is going to be a good idea for us anyway, as we have pets that we wouldn't want to get rid of and I know there aren't many places that will allow them if you are renting. So that would have to be a last resort.

i don't think you are being harsh at all and I really do appreciate all your help and advice,

Thanks
Jue x

Hi there Jue,i hope youre feeling a bit better with all the advice ?
I am in a very similar situation & had my lightbulb moment last friday (though it felt like Doomsday !)
I have managed to get a 3 month payment holiday with my mortgage provider which is going to help for a while,but you could also switch to interest only for a while.
Also I did what the CCCS said & changed bank accounts as i had a loan with my bank.....
iv lowered my mobile ,gas & electric tariff....
If you really try to shave a bit off every outgoing it may help a bit
Very best of luck xxx

jue3107

Thanks everyone ) feeling so much better today - like a massive weight has been lifted and that's all down to just coming on here and talking!

I've got quite a few things to try from all your advice above, and have booked the day off work tomorrow to make some headway in sorting it all out.

Also, probably the best news of all - I've managed to secure some regular freelance work - I don't know how much there will be yet, but either way it's going to help. I've got another meeting with a prospective client on Monday so keep everything crossed for me )

I'll be back online tomorrow night to tell you how I've got on.

Thanks again - you've been great
xx